Rathi, who is chief executive of London Stock Exchange, was also director of the financial services group at HM Treasury from 2009 to 2014.
He will take over at the FCA from Christopher Woolard who has been working as an interim chief executive following the departure of Andrew Bailey to the Bank of England at the start of the year.
Rathi said he was ‘honoured’ to be appointed chief executive of the FCA and paid tribute to his predecessors.
“I look forward to building on the strong legacy of Andrew Bailey and the exceptional leadership of Christopher Woolard and the FCA Executive team during the crisis,” he said.
“FCA colleagues can be very proud of their achievements in supporting consumers and the economy in all parts of the UK in recent months.
“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.”
Reaction to the appointment
Charles Randell, chair of the FCA, said: “I warmly welcome Nikhil to the FCA. 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.
“I would also like to thank Christopher Woolard for steering the FCA through its initial response to Covid-19 with great energy and skill. He has been an exemplary leader in this very difficult period.”
Challenges
Meanwhile, Martin Cheek, managing director at AML experts SmartSearch, said the Rathi will face a number of important challenges over the coming years as the financial system comes to terms with the damage wreaked by Covid-19.
“One of the biggest challenges is the increased threat of financial crime highlighted by the Financial Action Task Force in recent months, as criminals look to take advantage of the crisis,” he said.
“There have been significant improvements in the way financial institutions approach the fight against money laundering in recent years, but there are still too many firms operating outdated processes that have not kept pace with the increasingly sophisticated methods employed by criminals.”
