City watchdog slams proposals which would give Government the power to overrule regulators
The City watchdog has criticised proposals which would give the Government the power to overrule regulators.
Richard Lloyd, interim chairman of the Financial Conduct Authority (FCA), said the ‘call-in’ power would ‘clearly undermine our independence’.
He added that the FCA had not been consulted on the suggestion and had not seen the final proposals.
City regulator the Financial Conduct Authority says plans to give Government the power to overrule regulators would undermine its independence
Lloyd said: ‘Our international reputation and indeed our competitiveness in financial services is in part built very clearly on the independence of regulators.’
The Government wants to include the powers in the Financial Services and Markets Bill to allow ministers to ‘direct a regulator to make, amend or revoke rules’.
But Lloyd said that this would damage the independence of regulators such as the FCA and the Bank of England’s Prudential Regulation Authority.