Investors in Britain have criticised the Financial Service Authority's "new intrusive approach" to vetting candidates for bank directors. They said the watchdog's efforts could deter candidates from applying for such positions and hamper the effectiveness of banks' boards. Graeme Ashley-Fenn, director of permissions at the FSA, said the efforts are a response to "material shortcomings in the governance and risk management of numerous firms" at which boards "did not effectively challenge the executive or understand their business models sufficiently".

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