The chief executive of the Financial Conduct Authority (FCA) is to remain in post for a second term, following a rapprochement with the Treasury over the watchdog’s approach to pro-growth regulation.
Sky News has learnt that the chancellor, Rachel Reeves, has approved the reappointment of Nikhil Rathi, whose initial five-year term expires in September.
An announcement is expected from the Treasury later on Thursday, according to government officials.
The extension of Mr Rathi’s tenure until 2030 will come at a time when the Labour government is scrutinising the performance and strategy of scores of economic regulators amid a frantic search for growth.
The FCA had been under intense pressure to scale back the intrusiveness of its rules in relation to enforcement, culminating in a recent announcement that it would modify proposals to ‘name and shame’ companies under investigation.
Sky News revealed earlier this year that the Payment Systems Regulator would be scrapped and folded into the FCA, a move subsequently confirmed by the government.
Mr Rathi’s presentation last month of the FCA’s new five-year strategy had prompted speculation that he was minded to stay, after Sky News revealed last year that he had applied to replace Simon Case as cabinet secretary.
Mr Rathi had significant credentials for that role, having served as private secretary to both Tony Blair and Gordon Brown during their respective stints as prime minister.
He also spent nearly a decade in senior Treasury posts, including as head of its financial stability unit and as director of its financial services group.
In 2014, he joined the London Stock Exchange, becoming its chief executive in 2015.
During his time at the FCA, he had to contend with an often difficult relationship with the government, with public rows about its enforcement regime and approach to economic growth punctuating his tenure.
The Treasury declined to comment.
