Treasury backs beefed-up FSA
The Treasury is to back the Financial Services Authority's push for extra powers to clamp down on accounting abuses.
FSA chairman Howard Davies is keen to gain additional investigative powers to probe those companies suspected of breaking financial reporting laws, such as proactive investigations.
Sources close to the FSA are understood to have confirmed support from the Treasury for such a role, according to the FT.
Currently the FSA only has powers to react to complaints or media stories on companies. Any increase in powers could spell the end for the Financial Reporting Review Panel, which currently looks at accounts for breaches in financial rules.