Senior MPs have said there is a case for splitting the FCA into separate supervisory and enforcement bodies.

The call for a split was published in a Treasury Committee review of the 2008 failure of banking group HBOS.

The committee said the existing system, where supervision and enforcement are part of the same regulator, is “outdated and can be construed as unfair”, the BBC reported.

It added that the banking group’s regulator at the time, the FSA, was “not up to the job” and “clearly a highly dysfunctional institution”.

The report added: “Its legacy continues to pose a major challenge for its successor bodies, particularly the FCA.”

But the BBC pointed also pointed out that the Treasury had rejected a split in 2014, saying that there were clear advantages to locating the supervisory and enforcement functions within the same organisation”.