Parliament’s Treasury select committee plans to hold hearings into the governance and accountability of the new conduct regulator that the government plans to create out of the dissolution of the Financial Services Authority in 2013.
The Financial Conduct Authority will regulate 27,500 firms, including 2,100 banks and insurers that will also be regulated by the other new watchdog, the Prudential Regulatory Authority. The government has said it wants both regulators to intervene earlier to prevent consumer detriment and protect financial stability.
However, parliament and the industry have expressed concerns that these more aggressive watchdogs will not be sufficiently accountable.
Andrew Tyrie, chairman of the committee, first announced plans to look at the FCA’s governance in July amid a spat with the FSA about the long-running effort to reform sales of retail financial products.
Mr Tyrie said: “This is a golden opportunity to establish how, in future, the FCA can best be held to account by the consumers who pay for them, by industry practitioners and by parliament.”
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