Outgoing FSA chairman Sir Howard Davies yesterday slammed the increasingly litigious culture of business, claiming it could cause financial chaos.
Speaking at yesterday's AGM Davies attacked policyholders who, "appear to believe that every loss to investors, whatever the cause, should be compensated".
Much of his speech focused on the regulator's future challenges, warning that many of the FSA's future battles would lie in Europe.
He said: "Much of the work we do on the future of our regulatory environment has to be done in co-operation with regulators overseas, and particularly in Europe. [It] will remain high on my successor's agenda."
Davies also called on his successors to do more to promote the benefits of compliant marketing to firms. He warned that firms who have failed to become compliant could repeat past mistakes.
He said: "The biggest disappointment of my time at the FSA has been the failure of firms, and particularly their senior management, to learn the lessons of past mis-selling."
Davies, who is set to head up the London School of Economics, also called for the FSA to do more in the future to help consumers make good decisions. He said the FSA must do more to encourage firms to "think harder about the appropriate markets for their products and services".
Callum McCarthy will take over as FSA chairman, while John Tiner is set to become the FSA's new chief executive. Both will commence their roles on 22 September.
