Financial secretary to the Treasury Mark Hoban has stressed the twin peaks regulatory regime will be accountable to Parliament.
Hoban told IFAonline the Financial Services Bill, which is currently going through the House of Lords, will make the incoming Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) more accountable.
"One of the measures that is in the Financial Service Bill is to move to a point that where there has been a regulatory problem, that both the PRA and FCA do produce reports trying to understand what has happened," said Hoban.
He added although there is existing legislation compelling the Financial Services Authority (FSA) to produce reports on regulatory problems - something which has never been used - the Financial Services Bill will make it automatic for such reports to be published.
"They're going to be much more accountable so we can understand what's gone well in regulation but also what's gone less well, so we can improve the regulatory structure," he said.
The FCA will publish minutes of its board meetings so the regulator's decision-making process can be tracked.
Hoban said transparency will be a key feature of the new regulatory regime.
"One of things we're very keen to make sure we see in regulation is increased transparency. Increased transparency is a good regulatory tool, and it's a way for Parliament and industry to hold the regulator itself to account."
Hoban's comments come after Andrew Tyrie, the chairman of the Treasury Select Committee, recently stepped up his efforts to make the FCA more accountable to Parliament than its predecessor, the FSA.
The Conservative MP brought up the issue during questions to the Chancellor in the House of Commons in March, pointing out the difficulty the committee had in getting the FSA to produce a report into the failure of RBS.
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