He also said that a big question for the FCA is how we reconcile risk-taking with investor protection. What are the boundaries for this risk-taking and when should the regulator intervene, and with what consequences?

He added that part of the criticism the FCA faces is justified. We should improve our efficiency – which, is why we want to make a major investment in data analytics to give our staff more effective tools to do the job.

Mr Bailey concluded: “We cannot therefore hold to a standard where people do not lose money and where the value of assets does not decline. Investing is inherently risky.

“But, the public needs to receive clear meaningful disclosure on the risks they are taking and should expect markets that work well. We want to see more transparency in the risks of non-bank investment so that investors get useful information. That’s why I have argued that there needs to be reform in the UCITS framework.  And there are circumstances in which we impose limits on investment or outright bans.”