An inquiry was launched in January this year regarding the accountability of the financial services industry watchdog, the Financial Services Authority. March 31 was the deadline for concluding the inquiry and it looks like the FSA could be asked to appear before the House of Lords Select Committee. The inquiry concerned the level of accountability the FSA had to citizens of the UK and to Parliament and the results will be published this autumn.
The chairman of the committee is Lord North and he said that the inquiry would examine how regulators are scrutinised, how they maintain their independence and how effectively they work. Currently, the FSA are exempt from being liable for damages unless they can be shown to have acted in bad faith.
Our View
The inquiry should be welcomed by all. No organisation is perfect and if changes can be made it can only be of benefit.
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