LONDON –  The Financial Services Authority's chief executive Hector Sants will be questioned further by the U.K. Parliament's Treasury Committee before taking up his position as head of a new banking supervisory body, following evidence he gave to the committee earlier Monday on the FSA's report into the collapse of Royal Bank of Scotland PLC (RBS).

During his evidence, Sants said that the errors made by RBS during the time leading up to the financial crisis and its ill-fated 2007 purchase of ABN Amro for GBP50 billion were so serious that they should have been the subject of a full public accountability report.

At the time the U.K.'s regulatory authority limited its findings to a one-page notice containing its conclusion that there would be no enforcement proceedings.

Sants said that the procedure in place at the time prevented Fred Goodwin, the-then RBS chief executive, from being held to account and that Goodwin and others should be prevented from working in executive positions in a regulated industry in the future.

"RBS made a series of poor decisions which led to failure," said Sants. "The law should be changed so incompetence can be penalised," he added.

Later Monday the committee, essentially a governance body comprising lawmakers, said that it would be holding a follow-up meeting with Sants with respect to his appointment as chief executive of the new Prudential Regulation Authority that is to take over responsibility for supervising individual banks from the FSA later this year.

"The Committee will need to digest the evidence we have heard today," Committee Chairman Andrew Tyrie, commented.

"We will be holding a confirmation hearing with Mr Sants in due course with respect to his appointment as chief executive of the PRA and Deputy Governor of the Bank of England," he added.

Copyright © 2012 Dow Jones Newswires