if it were me......
I'd call their bluff and tell them to report you, it sounds very much like they are trying it on. You could also send what you have to the FSA for their comments/advice and at the same time report them (presumably they are memebers) for their bully tactics as THEY have no rights to tell what you can and can't do on your own site (the FSA maybe but not them).
Just my opinion, not advice legal or otherwise
