The National Audit Office (NAO) has launched an investigation of the new regulators, the Financial Conduct Authority (FCA) and Prudential Conduct Authority (PRA) over whether their regulation is proportionate and whether they provide value for money.
NAO said that this investigation will seek to assess how cost-effective the new regulators are to regulated firms and consumers.
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The new so-called ‘twin peaks’ regulatory structure was introduced by the Financial Services Act 2012 and requires an annual NAO review of the regulators.
The audit’s findings will be presented to the Public Accounts Committee (PAC) at the beginning of 2014, which will likely stage its own hearing on the findings.
The body added that it will also review the performance measurement system used by the new regulators.
An NAO spokeswoman said: "This study will examine the regulatory framework and approach, providing an early assessment on whether regulation in likely to be delivered in a targeted, proportionate, consistent and transparent way, and whether the bodies are effectively working together.
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By GlobalData"It will also consider the impact of the changes, both in terms of the additional costs of the regulators and, where possible, through estimates of the additional costs and benefits to regulated firms and consumers," he added.
