Hector Sants' step-down from head of FSA leaves uncertainty over regulator's future

The FSA, which has come under fierce criticism for its handling of the credit crisis could be removed if the Conservatives get to power.

The Tories say they would abolish the FSA and transfer power back to the Bank of England.

"[His departure] does lead to a huge amount of uncertainty, still, about where we are going with reforming the banking system," said the BBC's chief Economic Correspondent.

Hector, who joined the FSA three years ago has released the following statement:

"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."

"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."

He has worked at the FSA since joining them from investment bank Credit Suisse First Boston in 2004.