Sants last week revealed that the regulator will move away from principles-based regulation and towards an outcomes-based regime.
He says: “I believe the majority of market participants are decent but a principles-based approach does not work with individuals who have no principles.”
Ray Boulger, senior technical manager at John Charcol, says: “Sants is saying some in the industry are crooks and the FSA has messed up who it authorised.
“In 2007 he said a principles-based regime would provide the best chance of achieving the requisite balance between the benefits and risks of innovation. It’s a dramatic change in such a short time.”