Britain’s financial watchdog is to be formally reviewed by the UK Government. Treasury Minister Ed Balls says the National Audit Office (NAO) has been given a mandate to review the economy, efficiency and effectiveness with which the Financial Services Authority (FSA) uses its resources.

The review will start in July, and the Treasury plans to present a report to parliament in the first half of next year.

Mr Balls says the review will look at the FSA’s internal performance management, joint work with other organisations in Britain, international influence and representation, battle against financial crime and financial capability.