Sir David Walker and Bill Knight, who have been tasked with carrying out the review, will give their own analysis of the causes of RBS’s failure, and scrutinise the FSA’s handling of the investigation.
The report will look at the findings of the FSA’s own probe into RBS’s decision-making, risk controls and governance processes.
It will assess the FSA’s regulation and supervision of RBS, identifying any “deficiencies” and what action was taken by the FSA subsequently.
Finally the independent review will examine whether the FSA report fairly reflects the findings of its investigation into RBS’ failure, and the regulators own supervisory activities in the run up to the collapse.
Andrew Tyrie, chairman of the TSC, said: “It is essential Parliament gets to the bottom of this.
“There are crucial lessons to be learnt for the current conduct of bank regulation.
“We need to know the decisive mistakes which destroyed RBS, how they came to be made, whether the FSA was asleep at the wheel, and whether we can have confidence that they are awake now.”
Adair Turner, chairman of the FSA, said the regulator was committed a “high quality account” of RBS’ failure, and welcomed the independent review.
“I am confident that the final report will be seen as an open, fair, and valuable contribution to public understanding.”
