The Treasury Select Committee has today published the terms of reference for its inquiry into the Financial Conduct Authority (FCA), and is calling for evidence on how the new regulator should be interacting with the industry and using its intervention powers.
The Committee, which grilled senior figures at the Financial Services Authority (FSA) over their role in the financial crisis, and the benefits of the RDR, said last month it would subject the government's planned overhaul of financial services regulation to fierce scrutiny.
Today it has revealed the far-reaching nature of its inquiry, which will include questions about the accountability of the FCA, and whether it represents an improvement on the regulator it will replace.
The MPs, lead by chairman Andrew Tyrie (pictured), are calling on stakeholders to give their views on eight key issues around the changes.
The questions it wants evidence on are:
1. Are the objectives of the Financial Conduct Authority (FCA) clear and appropriate?
2. Should the FCA have a primary duty to promote competition as recommended by the Treasury Select Committee and Independent Commission on Banking? How should this work in practice?
3. Does the FCA's approach to regulation, as outlined in the Financial Services Authority (FSA)'s June 2011 document, represent an improvement on that of the FSA?
4. To whom should the FCA be accountable? Are the lines of accountability clear?
5. Are the powers of the FCA suitable? Will their exercise be subject to appropriate scrutiny? How should the FCA be interacting with industry as well as using its intervention powers?
6. How will the break-up of the FSA work in practice? Issues of coordination and information sharing between the FCA and the Prudential Regulation Authority (PRA).
7. How should the FCA be interacting with other domestic regulators? For example, the FCA's relationship with the Bank of England and Financial Ombudsman Service.
8. How should the FCA be interacting with international regulators? Do EU regulation initiatives restrict or enhance the work of the FCA? Will the FCA be able effectively to engage with the EU supervisory authorities?
Written evidence should be in Word or rich text format, not PDF, and sent by e-mail to [email protected].
The deadline is 12 noon on Monday 10 October 2011. Submissions should be no longer than 3,000 words.
Further guidance on the submission of evidence can be found here.
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Responding to letter from Treasury Committee chair Nicky Morgan