The Treasury Select Committee (TSC) has voiced fears over appointing former Bank of England (BoE) adviser Alastair Clark to the Financial Policy Committee (FPC).
By 2012, the Financial Services Authority (FSA) will be dismantled. In its place, the sector will be regulated by the Financial Policy Committee, the Prudential Regulatory Authority (PRA), and the Consumer Protection and Markets Authority (CPMA).
Clark has been appointed as a member of the FPC in the interim period, whilst the body has no legislative power.
However, the TSC has already expressed concern over his role on the FPC, seeing him as a government "insider".
In a statement the TSC said FPC members should ensure a diverse range of experience and views contribute to creating policy, and should not have any conflicts of interest.
"Clark's long experience at the BoE and then at the Treasury means it is difficult not to regard him as an ‘insider'," the TSC said.
"While we have no doubt of his intention to behave independently, we are concerned at the perception there will be of the extent of his independence.
"To ensure that the interim FPC has the intended representation of wider views, we recommend that a fifth external member also be appointed."
The FPC is modelled on the current BoE monetary policy committee. It will monitor the economy and pass on its concerns to the PRA, which has a duty to promote long-term stability in the economy.
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