Last month, the UK House of Lords launched a new committee to oversee the country's financial regulators, as reported by the Financial Times.
According to Lord Michael Forsyth, there was "unanimity" in the House of Lords that action was needed to enhance Parliament's ability to hold regulators accountable. The House of Lords Committee will work alongside the House of Commons Treasury Select Committee, which launched a subcommittee to oversee regulators in 2022.
Parliament's heightened focus on regulatory accountability stems from the expansion of the Financial Conduct Authority (FCA) and Prudential Regulation Authority's (PRA) powers following Brexit. Last year, the regulators were also given a secondary objective to promote economic growth and international competitiveness. "It is vital we are accountable to parliament for the role it has given us. We look forward to engaging with the committee," the FCA said in response to the formation of the new committee.
Starling will soon publish a Deeper Dive report entitled "Physician, Heal Thyself," discussing efforts to hold regulators accountable for their organizational culture and the outcomes such culture may drive. The report will feature a contribution from Charles Randell, past-Chair of the FCA. Join Starling Insights to be alerted when "Physician, Heal Thyself" is released!