A Conservative MP has called for the Financial Services Authority (FSA) to be made more accountable.

Howard Flight, shadow economic secretary to the Treasury, writing in the Chartered Insurance Institute's The Journal, said: "The FSA constitutes an unelected government for the biggest single sector of the UK economy – financial services – where there is insufficient antidote to the absence of representative accountability."

Flight said the FSA should be subject to a full independent review in 2004 and regularly after that to assess its cost-effectiveness.

He also said that the FSA should undertake cost benefit and analysis for all its rules, and not just new ones.