When Margaret Cole arrived at the FSA’s Canary Wharf offices in July 2005, she pinned above her desk a quotation from Machiavelli. “There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things,” it read.
The intent was clear. Ms Cole left a lucrative job as a partner at an American law firm and joined the regulator determined to overhaul its enforcement unit and dispel its reputation as being toothless. She quickly shook up the department — cutting about a third of its staff, bringing in dozens of investigators and prosecutors, and stepping up the number of investigations.
Seven years on, it is no longer regarded as a soft touch and can boast a string of successful prosecutions for insider trading, and hundreds of millions of pounds in fines against the financial world’s biggest names.
The approach did not always make Ms Cole popular. Some City lawyers believe that the FSA is too aggressive. Others argue it hasn’t gone far enough. But even her adversaries admit that she did, indeed, initiate a new order. Machiavelli would have been pleased.