FSA defends itself at public meeting

The Conservative Party announced last weekend they would scrap the FSA if they win the next General Election.

But Lord Turner said the Authority was determined to carry out its regulatory role without distraction.

He said: "The FSA does not ultimately make decisions on organisational roles, that's something for the Government. But we will continue to carry out our functions responsibly until any such decision is made."

Lord Turner revealed that the FSA had met with members of the shadow cabinet, including shadow chancellor George Osborne, to discuss the Tory plans to restructure the way the City is regulated.

He said: "We have had a number of meetings and they have been very constructive. We have been through the complexities, because there are huge organisational issues."

This morning's meeting at The Brewery in Chiswell Street gave around 450 members of the public the opportunity to put questions to the FSA chiefs, as well as a number of invited speakers from the financial world.

Both Lord Turner and Mr Sants rejected arguments that the FSA was not doing enough to prevent a repeat of the financial meltdown that occurred last year, claiming that steps have been taken to ensure banks behave in a more responsible manner in future.

Mr Sants said: "We have made it abundantly clear that company practices must not put institutions at risk. Things have fundamentally changed and managers and partners need to recognise that.

"We now have very clear rules and when people break those rules they should expect us to enforce against them. Our actions in the last 12 months, with criminal prosecutions underway, demonstrate that."