The chief executive of the Financial Services Authority ("FSA"), Hector Sants has given a speech in which he discusses the FSA’s current thinking with regard to the regulatory philosophy in which the Financial Conduct Authority ("FCA") will be created, including: the consumer protection agenda; the consumer protection ‘tool kit’; the markets agenda; the importance of Europe; and the FSA’s transitional arrangements.  With respect to consumer protection, Mr Sants envisages the FCA adopting a proactive and intensive supervisory approach with four key elements: (i) addressing structural deficiencies in sectors and the market place as a whole which limit or impair consumer choice and experience; (ii) delivering intensive supervision of firms to ensure they are treating customers fairly - in particular, focussing on point of sale practices, product manufacturing frameworks and firms’ governance and culture; (iii) making proactive product-based interventions, often on a thematic basis when sound business analysis shows the product is likely to cause more harm than benefit; and (iv) ensuring that in the event failure has occurred, the appropriate level of redress and compensation is achieved, and where necessary taking action against firms and individuals to deliver effective ‘credible deterrence’.