The TSC has published its terms of reference for their enquiry into the FCA and is requesting evidence showing how the new regulator will be interacting with the industry
The Treasury Select Committee (TSC) has published its terms of reference for their enquiry into the FCA and is requesting evidence on how the new regulator should be interacting with the industry and in what way it should use power to intervene.
Following the government’s proposed overhaul of the financial services regulation last month the TSC declared they would subject the plans to intense scrutiny. Senior members at the FSA have previously experienced this level of enquiry when they were grilled by the committee over their roles in the financial crisis and of the benefits of the upcoming RDR.
Last week the TSC, lead by chairman Andrew Tyrie revealed just how far reaching its inquiry would be by asking stakeholders for their in-depth views on 8 key issues. They will include questions on the responsibility of the FCA and to whom they are accountable, with clear lines of accountability required. With regards to the FCA’s liability, queries are brought up over whether their powers are suitable and if their actions will be subjected to the proper inspection.
To ensure the most appropriate action is taken the TSC have asked how the FCA should be interacting with domestic and international regulators, this will include their relations with the FOS and whether the FCA will be able to successfully connect with EU supervisory authorities.
Additionally, the TSC have asked of the issues of coordination and the sharing of information between the FCA and the Prudential Regulation Authority once the FSA has separated.
The TSC have also called for answers on whether the FCA’s approach to regulation will actually provide an improvement on those of the FSA’s.
The committee has set a deadline calling for full evidence around these key issues to be submitted by 10th October. The TSC’s aim is to ensure that the objectives of the FCA are clear and appropriate.