"Nevertheless, the FSA acknowledges that its supervision of Northern Rock was not of sufficient intensity or appropriate rigour to challenge the company's board and executive on their risk management practices and their understanding of the risks posed by their business model."Surely the same could be said of its supervision of RBS?Chopard Mille Miglia CH-11 do we not know how well the FSA itself thinks it has performed in relation to its regulation and supervision of RBS and, indeed, how well it has carried out its investigation into RBS?The answer, or at least the explanation, is probably that the FSA is independent of the Government and of Parliament. It is not accountable in the same way as a Government department.
It is true that all the members of the FSA's board are appointed by the Treasury and may be removed by the Treasury. It is also true that the FSA must submit a report at least once a year Chopard Mille Miglia CH-12 the Treasury and that report must be laid before Parliament. And, of course, executives of the FSA do appear before the Treasury select committee to answer questions. But the FSA is not accountable for its performance either to the Treasury or to Parliament.So to whom is it accountable? The answer is no one.Chopard Mille Miglia CH-13 a Government minister, such as the Chancellor of the Exchequer, were answerable to Parliament for the FSA,
it is likely the Chancellor and, if not he, Parliament, would have insisted on changes so that the FSA carried out its remit appropriately after its failure to do so with Equitable Life, Northern Rock, RBS and HBOS, to mention only four of the companies whose financial difficulties and potential failures occurred on the FSA's watch.Issues of accountability Chopard Mille Miglia CH-78 not only in relation to the FSA's performance of its supervisory duties but also in relation to the way in which it carries out its other functions.Take the retail distribution review as an example. During the historic debate in the House of Commons on November 29, 2010 on the RDR, several MPs expressed concern about the FSA's lack of accountability.
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