Nikhil Rathi has been reappointed for another five-year term as head of the Financial Conduct Authority (FCA), marking a significant recognition of his efforts to align with the government’s push for economic growth through regulatory reform.
Rathi, previously the CEO of the London Stock Exchange, becomes the first individual to hold a second five-year term at the helm of the FCA. Since his appointment in 2020, Rathi has overseen substantial changes at the regulator, including restructuring its remuneration policy and shifting its enforcement strategies. In March, he revealed a new five-year strategy aimed at supporting the UK economy.
The FCA is tasked with regulating more than 40,000 financial services firms, ensuring consumer protection, and promoting competition. Under pressure from Prime Minister Sir Keir Starmer’s government, the FCA has been urged to reduce regulatory burdens and encourage more risk-taking within the financial sector.
On Thursday, Rathi expressed his honor at being reappointed, highlighting the achievements made under his leadership. “I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards, and keep our markets clean and open,” he said. He also stressed that while further progress was needed, the UK remains a strong financial center.
Rathi’s reappointment signals government approval of the FCA’s alignment with Starmer’s policy of easing regulatory constraints. Key reforms led by Rathi include easing mortgage lending limits and raising the £100 cap on contactless payments. Additionally, the FCA recently updated rules for London-listed companies, providing more flexibility on issues like dual-class share structures to attract more IPOs.
The regulator also dropped plans to “name and shame” companies under investigation, a proposal that faced strong opposition from the City. However, the FCA has faced criticism, particularly in its handling of car finance mis-selling complaints, which are expected to cost lenders billions in compensation.
UK Chancellor Rachel Reeves emphasized in a letter to Rathi that she expects him to continue focusing on growth and competitiveness in future policy-making and supervision. Since the FCA’s formation in 2013, no chief executive has completed a full five-year term, with previous leaders leaving early for various reasons.
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