Hector Sants, the chief executive of the Financial Services Authority (FSA) says that the organisation needs to "to get out into the field" and intervene earlier.

Speaking as the organisation launches a major shift in strategy, Mr Sants said that it would become "a proactive regulator that takes its own view and does not just rely on firms behaving responsible and does not just assume that the market is always right".

Mr Sants, who is leaving his post during the summer, said that he did not fear any change of government, adding "we will discharge whatever mandate parliament gives to us". The Conservatives have said they will abolish the FSA if they win the next election.