FSA 'plagued' by lack of accountability

The Treasury Select Committee (TSC) today highlights the FSA's swift dismissal last year of a proposal to delay the introduction of RDR as evidence of accountability and culture failings at the regulator, and said the same problems must not "plague" its replacement, the Financial Conduct Authority (FCA).

The TSC today published a report into the FCA containing a number of recommendations for the government ahead of the drafting and publication of the Financial Services Bill early this year. According to the TSC, the FSA has not succeeded in protecting the public from "spectacular regulatory failings". It said a higher level of accountability to politicians would help the FCA avoid similar problems, which have "plagued" the current regulator. The government proposed a draft law last June to implement reforms which scrap the FSA and divide its tasks between the FCA and a new Prudenti...