FSA chief executive Sants to step down in the summer

There was speculation Mr Sants would quit last year but he insisted he only ever intended to serve a three year term, and he was bullish about his track record.

He said: "When I was appointed I told the board that I planned to serve as CEO for three years and I intend to stick to that timetable.

"Those three years have encompassed the most extraordinary circumstances for a financial regulator, and I am very proud of the manner in which the FSA rose to the challenge of dealing with such unprecedented turbulence across global financial markets.

"I believe the FSA candidly examined the failings in financial regulation that contributed to the onset of the crisis, learned the lessons and has gone on to reform itself into a much stronger and better equipped organisation."

FSA chairman Lord Turner paid tribute to Mr Sants contribution to the organisation's development.

He said: "Hector has given outstanding service and leadership through the turbulent last three years and has played a pivotal role in reforming the FSA into a truly effective organisation.

"He will leave behind an organisation with strong purpose and a clear strategy. We will be immensely sorry to lose him, but understand his decision to move on in the summer and wish him well in whatever he chooses to do after his departure.

"In the meantime, we will continue to work together to deliver the FSA's reformed and intensive supervisory approach and drive forward the global regulatory reform agenda."

The FSA board will meet to decide the process for a successor to Mr Sants. although if the Conservatives win the forthcoming General Election any new incumbent may not have long in the job.

Shadow chancellor George Osborne has vowed to scrap the FSA and return regulatory powers to the Bank of England should the Tories win the election.