FCA chiefs to pass Treasury approval

FCA chiefs to pass Treasury approval

The Treasury Committee has won a bid to secure greater authority over the Financial Conduct Authority (FCA), after the Chancellor granted them more powers regarding the appointment of the regulator's chiefs.

Under the new rules, the Treasury Committee will pass on their recommendation regarding a candidate for Chief Executive of the FCA to the House of Commons for approval or rejection.

Andrew Tyrie, Chairman of the Treasury Committee, said: “The FCA needs demonstrably independent leadership.

“Parliament’s, and the Committee’s, influence over the appointment and dismissal of the Chief Executive of the FCA has been greatly strengthened by the arrangements set out in the Chancellor’s letter.

“Parliament will now be better placed to safeguard the FCA from interference - or the perception of interference - by the Treasury or Treasury Ministers.”

Andrew added that quangos have acquired huge powers across government.

“Unless they are required by Parliament to explain their actions to Select Committees, the risk will be that many will be left unaccountable, in practice, to anybody.

“That is why a greater role for Parliament, and for Select Committees, in the appointment and dismissal of the people that head up these quangos is so important.”

Andrew Bailey, the current Chief Executive of the FCA, was appointed in January.

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