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Hector Sants, the chief executive of the Financial Services Authority is to stand down after three years in the job. Sants said he would leave in the summer, as planned.

The former CSFB banker has overseen the regulatory agency during the most turbulent times in its short history and during which it has faced fierce criticism for failing to spot the looming credit crisis or take action to stop it happening.

"I am very proud of the manner in which the FSA rose to the challenge of dealing with such unprecedented turbulence across global financial markets," Sants said.

"Moreover, I believe the FSA candidly examined the failings in financial regulation that contributed to the onset of the crisis, learned the lessons and has gone on to reform itself into a much stronger and better equipped organisation."

More recently, Sants has been the face of a more aggressive approach to regulation by the FSA with a series of strongly worded statements to the City over the way the financial services industry has behaved in the aftermath of the crisis.

Reports today suggested Sants could be in line for a senior position at the Bank of England, possibly even deputy governor, if the Tories win the next election. The Conservatives have already threatened to scrap the FSA if they win.

The FSA said they would announce the process for finding a replacement for Sants 'in due course'.