The Treasury has reappointed Nikhil Rathi as chief executive officer of the Financial Conduct Authority (FCA) and tasked him with fully embracing its “international competitiveness and growth objective”.
In a letter published today (10 April), chancellor Rachel Reeves confirmed Rathi’s appointment for a second five-year term and urged 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”.
In its five-year strategy, published last month, the FCA said it planned to prioritise increasing pension saving and consumers’ financial resilience, as well as pledging to invest in technology and overhaul its approach to become a more flexible, predictable and efficient organisation.
In line with the government’s wider drive for deregulation to support economic growth, the FCA said it would “significantly” streamline how it sets priorities, as well as review its data collection requirements.
Reeves told Rathi that the changes should include “consideration of how the FCA can maintain high standards of consumer protection and market integrity, while also enabling informed and responsible risk-taking by authorised firm and customers”.
“We must shift our collective approach to risk-taking, to enable and support more responsible and informed risk taking across the economy,” Reeves said.
“This is not about watering down consumer protections or market integrity; but in order to allow our economy to flourish we must allow businesses and consumers to make informed choices about the level of risk they take on, and our regulatory system must adapt to keep pace with innovation, new industries, and new challenges.”
‘The right leader in testing times’
Ashley Alder, chair of the FCA, said Rathi was “the right leader in testing times”.
“His exemplary first term as chief executive has ensured the FCA is an organisation transformed,” Alder added. “We’ve set a new standard for consumer protection, made it easier for businesses to access capital and quicker for firms to get authorised.
“That provides the solid foundation to deliver our ambitious new strategy – to deepen trust, rebalance risk, support growth and improve lives.”
Responding to the chancellor’s letter, Rathi said: “Helping consumers navigate their financial lives is a strategic priority, including delivering the outcomes of the Advice Guidance Boundary Review and ensuring consumers can access appropriate targeted support.
“I see an important role for the FCA in supporting wider work on financial inclusion, education and capability, so consumers are better equipped to take informed risk. We will also step up our efforts to fight financial crime.”
