MPs on the Treasury Select Committee (TSC) have once again called for upcoming legislation to give them the power to hold pre-appointment hearings for the chief executive of the Financial Conduct Authority (FCA).
The FCA will next year take over responsibility for the regulation of most firms, including financial advisers, and will be established through the Financial Services Bill, which is currently making its way through Parliament.
Ahead of its second reading in the House of Lords on Monday, the TSC today published another report outlining its concerns about the bill, focusing on the accountability of the FCA and the Bank of England.
The committee argued that pre-appointment hearings would bolster the legitimacy of the appointment of the FCA chief executive and dismissed the government's stance on the issue.
It said: "The government has failed to provide an adequate explanation as to the unsuitability of a pre-appointment hearing for the Chief Executive of the FCA.
"We do not accept its assertion that the appointment is too market-sensitive for such a procedure."
The first chief executive of the FCA is set to be Martin Wheatley, who is already managing director of the Conduct Business Unit within the Financial Services Authority.
Elsewhere in the report, the TSC urged the government to continue to pursue efforts to include the requirement for the FCA to publish its board minutes within the legislation, and also called for an amendment to give the committee the power to request retrospective reviews of the FCA's work.
Andrew Tyrie, chair of the TSC, said: "No explanation has been given for the rush to produce the Bill and place it on the Statute Book by the end of the year. Better to take a little more time, and get it right, than rush it.
"Much remains to be done. I hope our report will be of use to all those with an interest in securing further improvements to the Bill."
Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception