UK regulator sticks to stance despite Rock run

Britain's head regulator defended the Financial Services Authority's (FSA) principles-based approach, saying that it offers the "best chance" of balancing "the benefits and risks of innovation."

Hector Sants, the chief executive of the FSA, which has faced a barrage of abuse following the Northern Rock affair, said on Tuesday: "We are not operating a 'no fail regulatory regime'. We recognise that a successful financial market place requires innovation and competition. In turn, that means there