Nikhil Rathi has been reappointed for a second term as FCA CEO, a position he will hold until 2030. He is the first FCA CEO to complete a full five-year term.
During Rathi’s first term, he oversaw changes to the UK’s listings regime designed to allow more companies to issue shares on UK exchanges. The introduction of consumer duty standards in 2023 was also well received.
READ MORE: FCA overhauls listing rules to boost UK stock market
During his tenure, the FCA has also faced severe criticism from the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services last year, with a report citing a “toxic” culture, poor management and insufficient enforcement actions.
The paper, which included comments from several FCA employees, referenced low confidence in Rathi’s capabilities.
One participant in the enquiry, when asked whether the FCA needs to be made more accountable to the public, Parliament or other entity, stated: “I think the FCA is beyond that. It needs root-and-branch reform or even outright abolition.”
A key current target of the FCA is improving international competitiveness, a report on which is expected to be published in summer 2025. Its work in this space includes reducing regulation, improving access to capital and accelerating the authorisation process.
In a letter confirming his reappointment, Chancellor of the Exchequer Rachel Reeves outlined her expectations for Rathi’s second term.
“I expect to see the FCA fully embrace its international competitiveness and growth objective throughout the organisation, and 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.
“The burden of regulation in the UK is too high, significantly impacting growth, innovation and productivity.
“We must shift our collective approach to risk-taking, to enable and support more responsible and informed risk taking across the economy. 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.”
On his reappointment, Rathi commented: “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.”
