The Financial Conduct Authority has revealed Nikhil Rathi is to become the new chief executive of the Financial Conduct Authority following Andrew Bailey’s appointment to the Bank of England earlier this year.
Rathi is currently chief executive of the London Stock Exchange and previously worked as a director for the financial services group at HM Treasury. In this role, he led the Treasury’s work on the UK’s EU and international financial services interests.
Rathi, who is 40 years old, will take up the role in the Autumn.
He will be paid an annual salary of £455,000, 12% pension, and will not be entitled to a bonus or paid any other benefits.
He will not be involved in any supervisory or enforcement decisions relating to the LSE Group until 22 June 2021. At the point he joins the FCA, he will have no remaining interests in LSE Group shares, either via long-term incentive plans or otherwise.
FCA praises interim CEO for Covid-19 response
FCA chair Charles Randell, said: “Nikhil has been closely involved in guiding the FCA’s development through his roles on our practitioner panel and markets practitioner panel, and brings both private sector management skills and experience of domestic and international regulatory policymaking.”
Randell thanked Christopher Woolard who had acted as interim CEO following Andrew Bailey’s departure in March.
He said Woolard had steered the FCA through its initial response to Covid-19 with “great energy and skill”. “He has been an exemplary leader in this very difficult period.”
Rathi said: “In the years ahead, we will create together an even more diverse organisation, supporting the recovery with a special focus on vulnerable consumers, embracing new technology, playing our part in tackling climate change, enforcing high standards and ensuring the UK is a thought leader in international regulatory discussions.”
Andrew Bailey’s successor pays tribute to his ‘strong legacy’
He added that he looked forward to building on the “strong legacy” of Bailey and the “exceptional leadership” of Woolard and the FCA executive team during the crisis. “FCA colleagues can be very proud of their achievements in supporting consumers and the economy in all parts of the UK in recent months.”
Bailey was a controversial appointment to the Bank of England with the FCA under his watch accused of being too slow to act on issues such as the Woodford Equity Income fund suspension, mini bonds and the British Steel Pension Scheme scandal.
His appointment to the Bank of England, which was announced by former chancellor Sajid Javid in December 2019, reportedly split opinion in Downing Street. Javid was forced to defend his appointment and his role in the Woodford suspension in the House of Commons.
The Treasury select committee approved Bailey’s appointment unanimously but issued a warning to the FCA about its “culture, transparency and insufficient speed of action” both during his tenure and before.
See also: Industry slates Andrew Bailey’s track record as he lands BoE top job
