The head of City watchdog the Financial Services Authority is to step down in the summer, it was announced yesterday. Hector Sants has resigned after three years as chief executive and the process to appoint his successor will be announced in due course. Mr Sants had been vocal in opposing plans by the Conservatives to disband the FSA and hand greater powers to the Bank of England. With the future of the FSA unclear after the general election, it is thought the FSA will hold off until after then before deciding on plans for a successor. Whatever happens, if the UK wishes to remain a player in international markets, care must be take to enhance, not devalue, the controls that do work. Is the Bank of England the right place for supervision to rest? It is easy to identify gaps in rules and blame these for failures rather than understanding and building upon strong foundations. An interesting argument to follow!