Treasury reappoints Nikhil Rathi as head of UK monetary watchdog | USAEMALL.com

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Nikhil Rathi has been given another five-year term as head of the Financial Conduct Authority, a recognition of his embrace of the government’s push to boost economic growth by easing the burden of regulation.

Rathi, the former chief executive of the London Stock Exchange, is the first head of the British financial watchdog to be given a second five-year term.

Since his appointment in 2020, Rathi has overseen major changes at the FCA, including overhauling its remuneration policy and refocusing its enforcement approach. Last month he unveiled a new five-year strategy designed to support the economy.

The FCA, which regulates more than 40,000 financial services groups, protects consumers and stimulates competition, has come under pressure from Prime Minister Sir Keir Starmer’s government to ease the burden of red tape and encourage more risk-taking.

Rathi said on Thursday he was “honoured” to be reappointed. “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. While we must go further and faster in this age of volatility, the UK is well placed as a major international financial centre.”

Officials said Rathi’s reappointment reflected a view in government that the FCA had embraced Starmer’s new approach. They noted Rathi’s commitments to ease limits on mortgage lending and raise the £100 limit on contactless payments.

Last year the FCA also overhauled the rules for London-listed companies to increase their flexibility in areas such as dual-class share structures to try to attract more initial public offerings in the UK.

The regulator recently backed down on plans to “name and shame” more of the companies it investigates, a proposal that was heavily lobbied against by City firms.

The FCA has also been criticised by the City for the way it handled complaints about the mis-selling of car finance, which is expected to cost lenders billions of pounds in redress.

UK chancellor Rachel Reeves said in a letter to Rathi on Thursday that she expected him to “continue the work you have been leading to deliver a shift in mindset so that growth and competitiveness are at the core of your policy-making and approach to supervision and interacting with firms”.

Since the FCA was created in 2013 by splitting up the Financial Services Authority, none of its chief executives have completed their five-year terms.

Martin Wheatley was fired after less than three years in the job by former chancellor George Osborne in 2015 and Andrew Bailey left a year before his term finished to become Bank of England governor in 2020.