The chief executive of the Financial Conduct Authority (FCA) is set to continue in his role for a second term, following a reconciliation with the Treasury regarding the watchdog’s approach to promoting growth. Sky News has learned that Chancellor Rachel Reeves has given the green light for the reappointment of Nikhil Rathi, whose initial five-year term is coming to an end in September.
An official announcement is expected from the Treasury later on Thursday, as per government sources. Extending Mr. Rathi’s tenure until 2030 comes at a time when the Labour government is closely examining the performance and strategies of numerous economic regulators in a quest for growth. The FCA has faced significant pressure to ease the strictness of its regulations in terms of enforcement, leading to a recent decision to adjust proposals related to publicly identifying companies under investigation.
Earlier this year, Sky News reported that the Payment Systems Regulator would be dissolved and integrated into the FCA, a move subsequently confirmed by the government. Mr. Rathi’s presentation of the FCA’s new five-year strategy last month fueled speculation that he was inclined to stay, especially after Sky News disclosed last year that he had applied to succeed Simon Case as Cabinet Secretary.
Mr. Rathi’s qualifications for the role are noteworthy, having served as a private secretary to both Tony Blair and Gordon Brown during their respective terms as Prime Ministers. He also held key positions at the Treasury for nearly a decade, including heading the financial stability unit and leading the financial services group.
In 2014, he joined the London Stock Exchange and became its Chief Executive in 2015. Throughout his time at the FCA, he has navigated a challenging relationship with the government, marked by public disputes over enforcement practices and approaches to fostering economic growth.
The Treasury has chosen not to provide a comment on this matter.
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