A lack of depth in the Treasury’s understanding of financial services could undermine its role of holding the new regulator to account, according to Cicero Consulting director Iain Anderson.
At the Reform conference, Anderson said the quality of the Treasury’s oversight is vital in ensuring the reforms are successful.
He said: “A very senior former Treasury mandarin expressed concerns to me recently about the lack of depth in financial sector understanding at an official level. The Treasury needs to know the right questions to ask if it is going to hold the regulators to account.”
Anderson also questioned whether the Treasury is prepared for its new role. He said: “In this whole reform agenda, there is a really important question to ask – does the Treasury have the right governance structure in place?”
Treasury financial secretary Mark Hoban, speaking at the Reform conference , said making sure regulators are independent gives them credibility. He said: “Independent and depoliticised regulators carry great authority and strength in markets.”