The Financial Services Authority has made no secret of its efforts to become a tougher regulator, increasing fines, targeting more senior executives and conducting more intrusive supervision. The latest such effort, revealed by Financial News last week, is the introduction of spot checks of trading firms for the first time.

Tracey McDermott, acting director of enforcement and financial crime at the FSA, wants the City to know that her division's more muscular stance is here to stay.