The Financial Conduct Authority and the Prudential Regulation Authority will be subject to a full audit carried out by the National Audit Office.
The FSA came under the remit of the NAO for 2010/11 onwards and, in last week’s consultation paper, the Treasury confirmed that the FCA and the PRA will also have to comply with a full NAO audit to establish whether value for money is being delivered.
Both regulatory bodies will also be accountable to the public accounts committee, which assesses accounts based on value for money criteria.
The Treasury will have the power to require inquiries into regulatory fail- ure, whether this stems from the FCA or the PRA.
The Treasury also says it expects the Treasury select committee to play a key role in scrutinising each regulatory body.
The consultation paper says: “The Government believes that with this package of measures has provided a coherent framework for accountability, transparency and engagement for the new regulatory structure.”