FSA chief executive Hector Sants has warned firms that the FSA’s intensive supervisory approach will continue into the new organisational framework outlined by George Osborne in his recent Mansion House speech.

Sants made his comments as the FSA held its Annual Public Meeting at the Queen Elizabeth II Conference Centre in London, providing members of the public and interested parties a forum to discuss the FSA’s Annual Report, which was published on 10 June.

He said: “The new structure will create separate organisations to address conduct and prudential risk. We will thus need to ensure that these new organisations carry forward both the philosophy of ‘outcomes based regulation’ but also the necessary mechanism for making the required judgements.