UK watchdog may tone down tough approach if banks get in line

Britain will consider easing its tough approach to financial firms once they have put consumer interests at the heart of their businesses, Financial Services Authority managing director Martin Wheatley said on Tuesday.

"We would like to be able to reflect on the fact that firms have put consumers at the heart of their business and then we can tone back our approach," Wheatley told a Thomson Reuters newsmaker event.

Wheatley will head the new Financial Conduct Authority from next year, when the FSA is scrapped, and he will be tasked with drawing a line under years of mis-selling of financial products to consumers.

(Reporting by Huw Jones, editing by Matt Falloon)