Mark Kleinman is Sky News’ City Editor and the man who gets the Square Mile talking in his weekly City AM column. Today, he looks at the FCA chief, big Boots to fill and a high street icon

FCA chief Rathi not at the exit door after all

Embattled, besieged, under-fire: a few short weeks ago, there seemed no shortage of brickbats flying at Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA).

Those were not only being hurled at him by those the City watchdog regulates (largely as a result of the ongoing furore about its name-and-shame approach to enforcement, on which it capitulated completely yesterday). 

Amid a broader challenge to regulators to remove barriers to economic growth, the FCA was regarded in Whitehall as being one of the principal targets for a rolling back of red tape.

Alongside the Competition and Markets Authority, whose chairman, Marcus Bokkerink, has already been removed, the FCA is arguably Britain’s most important economic regulator, holding the keys to overseeing the critical growth engines of the economy.

During his four-and-a-half years in office, Rathi has raised few doubts about his competence but proven to be resistant to moves by his political masters to loosen the shackles of regulation in order to improve the UK’s competitiveness.

It was, therefore, assumed that he would step down at the end of his five-year term, which expires on 30 September.

The rumour mill had already cranked into gear about the identities of possible successors, both internal and external.

“The current CEO of the Financial Conduct Authority has a term running until 30 September 2025. The appointment process for the next term will be outlined in due course,” the Treasury said initially in response to enquiries about the recruitment of a successor.

By the end of last week, that stance had shifted. A recruitment process would not commence in the coming weeks, a spokesman said.

On 25 March, Rathi and Ashley Alder, the FCA chairman, will outline its priorities for the five years until 2030 – a period that would encompass a second full term for the watchdog’s chief executive.

It is expected to focus on a narrower range of policy consumer protection priorities with fewer new measures that would increase red tape for major firms.