FSA chairman Callum McCarthy this week urged the industry to adopt high standards of business continuity planning in light of the heightened terrorist threat in the UK.
In his Mansion House speech, McCarthy said the 7 July bombings had been a test for the industry, although the attacks were not aimed at the financial services sector.
He said: "The principal responsibility lies with firms to establish and to test - repeatedly - the necessary back-up arrangements."
McCarthy also highlighted the cost burden of regulation on firms, saying: "We want to reduce regulation where it is not matched by its benefits."
McCarthy asked the industry to provide views "on the areas which could benefit from re-examination" so regulation can be pitched "at the right level".