City watchdog the FCA names London Stock Exchange boss Nikhil Rathi as its new chief executive
- Nikhil Rathi, 40, takes over from interim chief Christopher Woolard
- Woolard had been appointed when Andrew Bailey left for the Bank of England
- Rathi said he will work towards creating ‘an even more diverse organisation’
New FCA boss: Nikhil Rathi
Nikhil Rathi, the boss of the London Stock Exchange, has been appointed as the new chief executive of the Financial Conduct Authority.
Rathi, 40, is taking over from interim chief Christopher Woolard, who was appointed in January when Andrew Bailey left to take the top job at the Bank of England.
He will play a key role in making sure banks and financial institutions are not mistreating businesses during the coronavirus crisis and in steering the financial sector through a post-Brexit Britain.
Rathi takes over at a difficult time for the city watchdog, which has been heavily criticised recently, especially throughout the Neil Woodford saga for providing inadequate protection of investors.
Rathi will be paid an annual salary of £455,000, 12 per cent pension, and will not be entitled to a bonus or paid any other benefits, the FCA said.
Prior to joining the LSE, Rathi worked for the Treasury between 2009 and 2014 where he led on the UK’s EU and international financial services interests.
This experience will likely help him navigate the post-Brexit regulatory scenario, according to Ian Mason, a former head of enforcement at the FCA and currently head of UK financial services at law firm Gowling WLG.
‘Mr Rathi’s work at the Treasury on EU and international markets will be important in working with the Government to navigate a workable regulatory outcome on Brexit for the UK,’ he said.
‘His CEO role at the London Stock Exchange will have provided commercial experience at the sharp end of the financial markets.’
The FCA has been heavily criticised recently, especially throughout the Woodford saga for inadequate protection of investors
The first BAME leader of the FCA, which was founded in 2013, Rathi said he would work towards creating ‘an even more diverse organisation’.
‘FCA colleagues can be very proud of their achievements in supporting consumers and the economy in all parts of the UK in recent months,’ he 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.’
As part of his appointment, Rathi must sell all shareholdings he has in the London Stock Exchange Group and will be unable to be involved in any decisions with the group for a year.
Chancellor Rishi Sunak, who made the appointment, said Rathi was the outstanding candidate for the position.
He added: ‘We have conducted a thorough, worldwide search for this crucial appointment and, through his wide-ranging experiences across financial services, I am confident that Nikhil will bring the ambitious vision and leadership this organisation demands.’
The FCA chairman, Charles Randell, said: ‘I look forward to working with him as he leads the FCA to deliver the next phase of its mission.
‘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.’