The FSA are trying to prove that they have a right to exist. This link to a Telegraph article shows bankers being denied the right to work on the whim of a Quango. WTF! You can bet your bottom dollar that if that was another industry group deciding that certain workers were trouble and that it was wise not to employ them there would be a major stink about rights and fredoms.
Be very clear, the FSA is a major problem in financial services. Its current behaviour of chronic persecution and coercion has everything to do with diversion tactics from its own epic failures and nothing to do with 'making financial services better'.