The chief executive of the UK’s Financial Services Authority has rebuffed criticism that the regulator is staffed by “out of touch bureaucrats”, after again admitting regret over the flawed supervision of Northern Rock ahead of its collapse last year.

Chief executive Hector Sants said, in his opening speech at the FSA's annual public meeting in London today, that last year had been arguably the most challenging since the FSA's creation 10 years ago.