Commenting on the report from the National Audit Office (NAO) on the FSA, Stephen Haddrill, director general of the Association of British Insurers, said: "The NAO has confirmed that the FSA has been moving in the right direction, particularly in its work on financial education and the shift to principles-based regulation.
"In many respects the FSA is leading the way as a financial regulator, both within the EU and beyond. This is especially important as we get close to the Solvency 2 Directive in the EU. This report is a further useful push in the direction of risk-based and outcome-focussed regulation."
