Rathi has been the FCA’s chief executive since 2020, during which time he has introduced Consumer Duty. The regulator is looking to streamline its rulebook, lower costs for firms and boost international competitiveness.
The regulator added that during his tenure, it had been working to “reduce and prevent serious harm by ensuring firms meet expected standards at authorisation while reducing the time it takes for them to get approved, bringing more criminal charges last year than ever before and by cutting investigation times”.
Looking ahead, the FCA, led by Rathi, will continue to “drive reform to make the UK the best place to do business by removing unnecessary, outdated and duplicate regulations – whilst ensuring consumers are protected from detriment and can be confident in markets”, the Treasury said.
The government has called on regulators across various different sectors in the past few months to come up with ideas to boost growth.
Ideas that the FCA has proposed include changing the loan-to-income (LTI) limit, simplifying its mortgage rules and using pension savings for home deposits.
One Year On: Helping You Add Value with Halifax’s Green Living Reward
Sponsored by Halifax Intermediaries
The Treasury said the reappointment of Rathi as chief executive was “critical for delivering key reforms to the regulatory environment to help boost growth and deliver the Plan for Change”.
The new term will run until September 2030.
Rachel Reeves said: “Nikhil Rathi has been crucial in this government’s efforts to reform regulation so it supports growth and boosts investment – I am delighted he will be continuing his leadership of the FCA. We want the FCA to go further and faster to deliver this government’s Plan for Change and we look forward to continuing to work together to achieve this.”
Rathi added: “I am honoured to be reappointed by the Chancellor. The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy. 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.”
Ashley Alder, the FCA’s chair, said: “I am delighted Nikhil has been reappointed. He’s the right leader in testing times. His exemplary first term as chief executive has ensured the FCA is an organisation transformed.
“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.”
