The UK House of Commons’ Treasury Select Committee has published a report on the proposed new Financial Conduct Authority ("FCA"), to advise the Government in preparation for the drafting and publication of the Financial Services Bill in early 2012. The report begins with an analysis of how the FCA fits into the proposed regulatory structure, followed by a consideration of its objectives. It then looks at the proposed lines of accountability for the FCA and makes suggestions for improvement. The report then outlines the FCA’s place in the wider regulatory architecture, including how the FCA should coordinate with the Prudential Regulatory Authority and the EU. Finally, the report looks at the proposed new powers of the FCA, such as early warning notices and product intervention. Some of the key conclusions in the report are: (i) competition should be central to the culture of the FCA; (ii) the Government should re-examine the need for the FCA’s strategic objective as it may lead the FCA to seek to enhance confidence in markets at times when that confidence may be misplaced; (iii) it is not necessary to transfer the competition powers of the Office of Fair Trading to the FCA; (iv) the FCA should develop more reliable estimates of its own cost effectiveness; (v) the Government should examine the scope for differentiating between retail consumers and wholesale consumers in the draft Bill; (vi) there should be improved communication between the FCA and the industry; and (vii) the draft Bill does not provide for adequate accountability, or a framework for sufficient scrutiny of the FCA. Therefore, the draft Bill should be revised to ensure that the FCA is properly accountable to Parliament and that the necessary tools are available.