The House of Commons will be given the power to reject future FCA chief executives.

Parliament is set to get a final say on appointments, Chancellor George Osborne has told the Treasury Committee.

In a letter to MP Andrew Tyrie, the chairman of the Treasury Committee, he outlined the changes.

The reforms mean that the Government will need to ensure that Parliament in general, and the Treasury Committee in particular, is content with any appointment, or decision not to reappoint, the FCA CEO.

The committee will be able to grill any prospective candidates before being appointed and if they disagree with the Treasury’s choice can refer the decision to MPs to vote in the Commons.

This follows the recent appointment of Andrew Bailey to replace Martin Wheatley.

The appointment will be made on a renewable, 5-year term set out in statute.

Andrew Tyrie MP, chairman of the Treasury Committee, said: “The FCA needs demonstrably independent leadership. Parliament’s, and the Committee’s, influence over the appointment and dismissal of the chief executive of the FCA has been greatly strengthened by the arrangements set out in the Chancellor’s letter.

“Parliament will now be better placed to safeguard the FCA from interference - or the perception of interference - by the Treasury or Treasury Ministers.

“Quangos are acquiring huge powers across Government. Unless they are required by Parliament to explain their actions to Select Committees, the risk will be that many will be left unaccountable, in practice, to anybody.

“That is why a greater role for Parliament, and for select committees, in the appointment and dismissal of the people that head up these quangos is so important.”

In 2010 the Treasury Committee acquired a veto power over the appointment and dismissal of the OBR Chairman. The appointment of the chairman of the ONS also now requires a resolution of the House of Commons.

Acting FCA chief executive Tracey McDermott last week revealed she would exit the body in June, when Mr Bailey takes up the role.

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