Tracey McDermott, acting director of the FSA's enforcement and financial crime division gave a speech on the approach to enforcement that will be taken by the Financial Conduct Authority when it is formally established in 2013.

The FCA will focus on those in senior management positions that fail to monitor and manage the risks to which their firm may be exposed. The new regulator will be looking to ensure that products are sold in a suitable and appropriate way to consumers and that it is the consumers' interests that are put first at all times, including during the design process for new products.

The FCA will have a low tolerance for repeat offenders and will be prepared to take action against firms that merely plaster over the cracks without taking the time to examine and remove the root cause of the problems.

Martin Wheatley, chief executive-designate of the FCA, has also given a speech on the FCA's approach to enforcement. Wheatley said the key to success in ensuring markets function well and consumers are treated fairly is to establish good customer outcomes within the business models of regulated firms.