Members of the Treasury select committee have tabled an amendment that would give them a veto over the appointment of the Financial Conduct Authority chief executive.
The amendment to the Bank of England and Financial Services Bill has been signed by nine members of the committee across three parties.
It would mean HM Treasury would not be able to appoint a chief executive to the FCA - or dismiss them - without the consent of the committee.
The chairman of the committee, Andrew Tyrie, said it already has these powers for the Office for Budget Responsibility which provides a precedent.
He said: “Public appointments to quangos need more rigorous scrutiny. They have needed it for years.
“The time has come to entrench the independence of the post of chief executive of the FCA.
Public appointments to quangos need more rigorous scrutiny. They have needed it for years.“The chief executive of the FCA should be able to operate with the confidence that he or she cannot be dismissed without Parliament’s – the Treasury Committee’s – approval.
“The public, too, need to have confidence that the Government is not interfering with independent supervisors and regulators.”
The amendment has been signed by Conservative MPs including Mr Tyrie, Mark Garnier, Steve Baker and Jacob Rees-Mogg, Labour MPs such as Wes Streeting, Helen Goodman and Rachel Reeves, and SNP MP George Kerevan.
Its tabling was announced as the committee published its report into the scrutiny of appointments more widely.
The report said that giving Parliament an effective veto over the appointment and dismissal of the Governor of the Bank of England would bolster his or her independence and recommended that this should happen.
HM Treasury has been asked for comment.
The select committee’s request comes after chancellor George Osborne did not renew Martin Wheatley’s contract last year.
Andrew Bailey was named as Mr Wheatley’s permanent replacement last month.
Mr Wheatley, famously said he would “shoot first” and ask questions later, joined the FSA shortly before it was replaced by the FCA from the Hong Kong Securities and Futures Commission, where he had worked for seven years.
Before that he worked for the London Stock Exchange for 18 years.
Mr Bailey is chief executive of the Prudential Regulation Authority and has given the Bank of England “30 years of service”, according to their PR team.
Adviser view
Paul Howard, a financial adviser with Reading-based Box Financial Planning, said: “I think the FCA does need more independent oversight.
“The chief executive cannot be an independent person if they are being formally appointed by the government or the FCA.”
