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Tories in bid to woo FSA sceptics...

SHADOW chancellor George Osborne yesterday launched a charm offensive at the Financial Services Authority (FSA) as the Conservatives stepped up their preparations for a radical overhaul of the UK&rsquo;s regulatory system after the next election.<br /><br />In a highly charged meeting at the FSA&rsquo;s Canary Wharf headquarters, Osborne told the regulator&rsquo;s senior staff that he appreciated the work they were doing and explained, as one source said, that &ldquo;they would not be lined up against a wall and shot&rdquo;.<br /><br />Osborne, flanked by senior members of his Treasury team, also criticised some aspects of the Bank of England&rsquo;s performance during the banking crisis, saying that it is &ldquo;clear the governance of the Bank needs to improve as well&rdquo;.<br /><br />The meeting took place against the backdrop of poor morale at the FSA.<br /><br />Osborne and his team were facing the FSA top brass, including its chief executive Hector Sants, for the first time since announcing plans to abolish the organisation and hand the power to supervise the financial sector to the Bank of England.