Nikhil Rathi to lead financial watchdog for second term

NIKHIL RATHI will continue as chief executive of the Financial Conduct Authority (FCA) for a second five-year term until September 2030, it was announced on Thursday (10).

The reappointment comes as the financial watchdog works with the government on regulatory reforms aimed at economic growth while maintaining consumer protection.

Since taking on the chancellor Rachel Reeves' challenge last December to boost economic growth, the FCA under Rathi has developed policy changes including modifications to mortgage rules to help first-time buyers and additional support for financial services firms, a statement said.

"The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy," said Rathi. "I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open."

Rathi was first appointed to lead the FCA on 1 October 2020. He began his career at HM Treasury before serving as private secretary to the prime minister from 2005 to 2008. He later became head of the Financial Stability Unit, overseeing UK financial stability interventions.

From 2009 to 2014, Rathi served as HM Treasury's director of the Financial Services Group, where he also represented the UK on the EU Financial Services Committee.

Before joining FCA, Rathi worked at the London Stock Exchange (LSE) from 2014, becoming its CEO in 2015. He holds a BA in philosophy, politics and economics from the University of Oxford.

According to the statement, the government has begun merging the Payment System Regulator into the FCA to create a more coordinated approach to the payments sector, promoting innovation and competition.

"Nikhil Rathi has been crucial in this government's efforts to reform regulation so it supports growth and boosts investment," said Reeves. "We want the FCA to go further and faster to deliver this government's Plan for Change."

The government's Regulatory Action Plan aims to reduce administrative costs of regulation on businesses by 25 per cent as part of its strategy to make Britain more business-friendly.

FCA chair Ashley Alder expressed support for Rathi's reappointment: "His exemplary first term as chief executive has ensured the FCA is an organisation transformed. We've set a new standard for consumer protection, made it easier for businesses to access capital and quicker for firms to get authorised."

The FCA will publish its second report on its growth and competitiveness strategy later this summer. Meanwhile, the organisation continues to review the financial services regulatory landscape to remove rules that might restrict growth.

The FCA will publish its second report on its growth and competitiveness strategy later this summer. Meanwhile, the organisation continues to review the financial services regulatory landscape to remove rules that might restrict growth, the statement added.