The Financial Services Authority has ordered City firms to refund up to 50,000 customers who invested in "split capital" funds designed to pay pensions or school fees.

In a Times interview, FSA chief Sir Howard Davies attacks the conduct of financial services companies and accuses them of ignoring problems and failing to inform the public when things go wrong.

His comments follow a series of rows over the City "mis-selling" of personal pensions and endowment mortgages.