Accountability of regulators Regulator engagement with HM Treasury, external stakeholders, and Parliament Engagement with stakeholders Appointment of external persons to statutory panels
The Act introduces a requirement for the FCA, PRA and PSR, when appointing persons to their statutory panels, to ensure all members are external to the FCA, the PRA, the PSR, the Bank of England, or HM Treasury. The legislation describes ‘external’ as those who do not receive remuneration from the regulators or HM Treasury.
	This requirement is intended to maintain the practice that the regulators’ statutory panels are comprised entirely of external members, which is crucial to each panel’s success in providing challenge, expertise, differing perspectives and fulfilling their role as a ‘critical friend’ to the regulator.
	This requirement will be applied to all the existing regulator statutory panels and new panels created or placed on a statutory footing by the Act, save for where HM Treasury provides exemptions via regulations.
	In some cases, while remaining external, it is appropriate for panel members to receive remuneration. For example, to ensure that the panels continue to attract a diverse range of experts, it may be appropriate for panel members to receive remunerations for their work on the panel or other ad hoc work on specific projects. Therefore, the Act provides for HM Treasury to make regulations specifying exemptions to this condition, where appropriate.
	This requirement does not disqualify someone who is serving on a statutory panel from receiving expenses.
	This requirement is intended to maintain the general practice that the regulators’ statutory panels are comprised entirely of external members, which is crucial to each panel’s success in providing challenge, expertise, differing perspectives and fulfilling their role as a ‘critical friend’ to the regulator.
	This requirement will be applied to all the existing regulator statutory panels and new panels created or placed on a statutory footing by the Act, save for where HM Treasury provides exemptions via regulations.
	The FCA statutory panels in scope of this requirement will be: the FCA’s Practitioner Panel, the Smaller Business Practitioner Panel, the Markets Practitioner Panel, the Consumer Panel, the Listing Authority Advisory Panel and the Cost Benefit Analysis Panel.
	The PRA statutory panels in scope will be: the PRA Practitioner Panel, the Insurance Practitioner Panel, and the Cost Benefit Analysis Panel.
	The PSR statutory panel in scope will be the Payment Systems Regulator Panel.
	The Bank of England (the Bank) does not maintain statutory panels for the exercise of its FMI functions, so this requirement does not apply to them.