The Financial Services Authority (FSA) is scrutinising executives and managers more closely than before, according to those working in the City.
Speaking to the Financial Times, a number of lawyers who remained anonymous, explained that there has been something of a clampdown on those in top positions at the firms regulated by the FSA.
One said: "There is definitely a sense that the FSA is becoming tougher on approvals. Up until now it was more about excluding the obvious bad boys from the industry."
This means that the executives have been asked to attend interviews more often and have faced questions about their experience and past roles.
Businesses have also faced more probing about issues which have proved problematic in the past, including the suitability of the auditors tasked with looking at a company's accounts.
The claims follow a recent speech by Hector Sants, the chief executive of the FSA, who warned business leaders to be "very frightened of the body.
