- Industry and Regulators Committee has ‘conducted scrutiny’ of top regulators
- Committee calls for evidence ahead of inquiry as watchdogs face criticism
Labour’s Lord Clive Hollick will chair the inquiry into Britain’s regulators
A House of Lords inquiry is set to investigate the relationship between the Government and UK regulators amid independence and accountability concerns.
The cross-party Industry and Regulators Committee, chaired by former media mogul Lord Hollick, is calling for evidence ahead of a probe into some of the country’s most powerful regulators, including the Financial Conduct Authority, Ofwat and Ofgem.
Other watchdogs facing the committee’s spotlight include The Pensions Regulator, the Bank of England’s Prudential Regulation Authority and the Office for Students.
Lord Hollick said the Committee has already ‘conducted scrutiny’ of certain regulators and plans to ‘shine a light on the UK regulatory ecosystem and how effective it is’.
There are 90 regulators across the UK, not including local authorities, according to the Department for Business and Trade.
UK regulators cover a wide range of sectors and activities, and have a range of different powers and responsibilities.
In some cases, for example, they have been given a specific job to do by parliament, and while many are funded by the taxpayer others are not.
The Industry and Regulators Committee’s inquiry will focus on regulators classed as public bodies with a statutory role established by parliament.
A number of British regulators have faced significant criticism over recent years, taking the blame for industry failures happening under their watch.
Hollick is the former CEO of United Business Media until April 2005, later trying to buy ITV when employed by private equity firm KKR
The FCA, for example, has been scolded by critics for perceived failures in consumer protection, particularly with regard to high-profile cases like the collapse of the Woodford Equity Income fund in 2019 and high rates of fraud.
Meanwhile Ofwat has been criticised for allowing water companies to pollute beyond compliant levels, while amassing huge debt piles, and Ofgem has been pilloried for its oversight of the energy market after multiple firms collapsed in the wake of soaring prices.
The areas the Industry and Regulators Committee is seeking evidence on include the balance between the responsibilities of regulators and those of the Government, as well as the skills and expertise of regulators, and comparisons with international equivalents.
Lord Hollick said: ‘A common area of concern arising from all these inquiries is the relationship between the regulator and the Government, and the level of independence and accountability regulators have.
‘Many regulators are public bodies funded by the taxpayer and have significant powers; it is therefore vital that they are scrutinised and held to account.
‘This short, cross-cutting inquiry will shine a light on the UK regulatory ecosystem and how effective it is.’
