Sources close to the situation said questions are being asked in Westminster about what mechanisms will be in place to police the CPMA if HM government is not even given a veto over who will head up the body.
MPs are apparently angry at what they see as a total lack of accountability at the FSA and are keen to rein in the power of the regulators. They fear history repeating itself if neither the Treasury Select Committee (TSC) or the Treasury are given control over key appointments at the CPMA.
Harriett Baldwin, MP for West Worcestershire and a thorn in the FSA’s side over the RDR since her appointment in May, made a formal request to the Treasury to bring forward proposals to give the TSC veto powers over the appointment of the chief executive of the CPMA.
But official records show in his response, Hoban, the financial secretary to the Treasury, has flatly dismissed the idea.
He said: “The appointment will be made in line with the normal process for appointing FSA executives, which does not include a role for the Treasury Select Committee.”
He added the process for selecting a chief executive-designate of the new CPMA has begun. The successful candidate will join the FSA as a managing director and main board member until the CPMA is established next year.
Martin Wheatley, head of Hong Kong’s financial regulatory body, has emerged as a leading candidate for the CPMA’s top job, according to reports.
