The City watchdog is to adopt a new US-style rule-based approach for policing the City, following a series of failures during the financial crisis. Hector Sants, the FSA's chief executive, said work was "under way to identify those risks where the prescription that rules provide is the most effective way to protect consumers" in a speech yesterday.
The previous light-touch principles-based approach has been much criticised for allowing abuses during the financial crisis.
A rule-based regime should also make it simpler for UK regulators to implement EU directives. And Mr Sants warned people had to be prepared for even big banks to fail.