FSA chief executive John Tiner hit out against criticism that the FSA had backtracked on its proposals on soft commissions and unbundlings.
Speaking at a CBI Financial Services Council meeting, Tiner said: “There has been some misplaced comment about the FSA backtracking on our proposals on soft commissions and unbundling.
“Perhaps I could clarify. We are not.
“Our focus is always on the ends not the means and, where we are confident that a sensible market-led solution can deliver our target outcome, we will work with the grain of the market rather than reach for our rule book.
“It is sometimes the case that by opening up issues and asking the hard questions, the market is prompted by the regulator to fix practices which work to the detriment of the users and customers of the market.
“In these circumstances we will watch market developments like a hawk and if the market fails to deliver we will not hesitate in imposing rules."
Tiner added: “The ball is now very much in the industry's court. If it seems to them that we are breathing down their neck on this issue, then that is because we are.”
