The FSA rule book, if printed out, stands 8 feet / 2.440 metres high.
If nothing else that nails the lie of light touch regulation.
Regarding my response to MW comment you can find how the FSA/FOS/FCSC admitted it can 'create law' here
“We do not have to pretend to ‘find’ what the law is. We unashamedly make new ‘law’”, boasted Walter Merricks in a June 2001 speech to the Financial Regulation Industry Group
How can a Quango be allowed to make new law? How can it be allowed to be applied without Parliament approving it? Is it at all compatible with freedom for the Government to empower Quangos like this?