Letwin savages 'intrusive' watchdog

THE Financial Services Authority was pounded on two flanks ahead of its annual general meeting on Thursday.

Shadow Chancellor Oliver Letwin slammed it as heavy handed and called for 'a regime change', saying he would drastically prune its remit. But he stopped short of urging its abolition.

Letwin wants to curb the FSA's 'intrusive regulatory regime' and says it cannot cope with its current role let alone further responsibilities.

Beyond its £200m-plus direct cost, he says firms spend billions complying with red tape.

Separately, Paul Davidson, known as 'the Plumber' whose appeal against a record £750,000 FSA fine prompted red faces and resignations at the watchdog, said he will sue if the FSA 'does not reimburse him at least £3m in wasted costs and damages'.

The FSA appeal tribunal stepped down in June after its chairman admitted to talking about the case with a neighbour, who headed the FSA disciplinary committee which fined Davidson.