In a speech to a Reuters event, Hector Sants spoke of FSA’s role in intensive supervision and credible deterrence. He looked at the main drivers of the crisis and the main regulatory gaps. He explained FSA’s views on “principles-based regulation” and why it is better described as “outcomes-focused”. He outlined a fundamental change that would see FSA regulating based on judgements about the future rather than just actions in the past. He said people should correct the view that FSA was not frightening and instead should be “very frightened” of it. He also discussed how FSA would use more outcomes testing, with opportunities for criticism with hindsight.