To pay its increasing expenses, the U.K. Financial Services Authority has been forced to rely on revolving credit facilities from banks such as HSBC and Lloyds Banking Group, which the watchdog oversees. The situation is raising questions and concerns among regulatory experts and other market participants. "This could be seen as quite controversial," said Selwyn Blair-Ford, a senior domain expert at FRSGlobal. "The FSA borrowing from banks it regulates implies a sense of obligation towards those banks. At what rates were these facilities agreed at? Were they market rates? I think these are important questions that need answering."