The Treasury select committee says it will continue to push for the Financial Conduct Authority to have a primary duty to promote effective competition.
Earlier this month, the Government published draft legislation which gave the FCA a duty to promote competition so far as it is compatible with its main objectives, which include facilitating efficiency and choice in the market.
At the British Bankers’ Association international banking conference last week, select committee chairman Andrew Tyrie said the committee would continue to push for competition to be the regulator’s prime concern.
He said: “We remain concerned as a committee that the draft legislation published a few weeks ago does not adequately entrench competition at the heart of the work of the new regulator.”
The committee’s report into competition and choice in the banking sector, published in April, called on the FCA to treat competition as a primary consideration.
Tyrie said competition in banking is impeded by barriers to firms entering the market, barriers to account switching and a lack of price transparency.