Moved by
Lord Sikka
120: After Clause 40, insert the following new Clause—
“Supervisory Board
(1) There is to be a Supervisory Board to perform the function of monitoring the FCA and PRA.
(2) The Supervisory Board must consist entirely of stakeholders.
(3) Recruitment for the membership of the Supervisory Board is to be conducted through open competition and the appointments are to be confirmed by the House of Commons Treasury Committee, or another relevant House of Commons Select Committee.
(4) The Chancellor of the Exchequer may nominate individuals to the Supervisory Board.
(5) The following are ineligible for appointment to the Supervisory Board—
(a) current and past employees of the FCA and the PRA, and
(b) current employees of organisations supervised by the FCA and the PRA.
(6) A member’s membership of the Supervisory Board cannot exceed a period of five years beginning with the day the member’s appointment is confirmed under subsection (3).
(7) The Supervisory Board has no responsibility for—
(a) the day-to-day operations of the FCA or the PRA, and
(b) investigations and enforcement of the rules devised by the FCA and the PRA.
(8) The Supervisory Board’s functions are to—
(a) provide strategic oversight of the Executive Boards of the FCA and PRA responsible for day-to-day operations;
(b) inquire into the adequacy of resources used and available to the FCA and the PRA;
(c) seek explanations from the Executive Board for reasons for the delay in launching and completing investigations; and
(d) seek explanations from the Executive Board in relation to the efficiency and effectiveness of the FCA and the PRA in discharging their statutory duties.
(9) The Supervisory Board shall have powers to—
(a) demand explanations from the Executive Board on any matter affecting the protection of consumers from harmful practices;
(b) secure information from the Executive Board about their transparency and accountability to the public; and
(c) liaise with whistle-blowers and examine FCA and PRA policies for protecting and rewarding whistle-blowers.
(10) The Supervisory Board must hold open meetings with the Executive Boards of the FCA and the PRA at least once every three months.
(11) The working and background papers of the Supervisory Board must be made publicly available.
(12) The Supervisory Board must lay before each House of Parliament an annual report highlighting matters of concern relating to the operation of the FCA and PRA which it has discovered in exercising its powers and functions.
(13) The Supervisory Board must be consulted on appointment and reappointment of the Chief Executives of the FCA and the PRA.”
Member’s explanatory statement
This new Clause would create a Supervisory Board to monitor the Executive Boards of the FCA and PRA and provide a diversity of views on the conduct of the FCA and the PRA.