London Stock Exchange boss Nikhil Rathi is set to take up position as chief executive of the Financial Conduct Authority this autumn, but the former Treasury insider has commanded very few column inches to date.
Rathi, who earned a first in Politics, Philosophy and Economics from Oxford, was formerly private secretary to prime ministers Tony Blair and then Gordon Brown between 2005 and 2008.
He joined the Treasury in the midst of the global financial crisis in 2009, rising through the ranks before switching to the private sector in 2014 as chief of staff and director of international development for the London Stock Exchange.
Rathi, who is still just 40 years old, was appointed by the even-more youthful chancellor Rishi Sunak who is almost a year his junior.
The new FCA boss, who is married with two children, stands to take home a salary of £455,000 with pension contributions of 12 per cent.
However, unlike many of the CEOs of firms he regulates, Rathi will not be entitled to a bonus or other benefits.
The watchdog’s new chief grew up in Barrow-in-Furness, Cumbria, where his father was a local magistrate.
He attended Chetwynde school and became an under-12s tennis champion for the county.
Rathi will be replacing temporary chief executive Christopher Woolard who had also been tipped for the permanent role after spending seven years at the regulator.
Other contenders who were thought to be in the running included FCA head of supervision Megan Butler and Hong Kong Securities and Futures Commission chief executive Ashley Alder.
Commenting on the appointment earlier today chancellor Rishi Sunak said: “Nikhil is the outstanding candidate for the position of chief executive of the FCA, and I am delighted that he has agreed to take up the role.
“We have conducted a thorough, worldwide search for this crucial appointment and, through his wide-ranging experiences across financial services, I am confident that Nikhil will bring the ambitious vision and leadership this organisation demands.
“I would also like to thank Christopher Woolard for the excellent job he has done in leading the FCA in this challenging period.
“His experience, dedication and professionalism have been greatly appreciated.”
Personal Investment Management and Financial Advice Association chief executive Liz Field says: “Nikhil Rathi is an extremely knowledgeable and experienced leader, as his successful stewardship of the LSE as its chief executive for the past six years demonstrates.
“His knowledge of the wealth management and financial advice sector, as well as prior experience of working within government, leading on the UKs European Union and international financial services interests, will be particularly welcome at a time when we are renegotiating our relationship with Europe and striving to form new relationships with international partners.
“Mr Rathi becomes chief executive of the FCA at a time of significant change and he will have many competing priorities.
“We look forward to having a productive and constructive working relationship with him and wish him well in his new role.”
DWF head of regulatory consulting Andrew Jacobs says: “Rathi comes from a strong pedigree of high profile, systemically important leadership roles and is a solid choice to lead the next chapter of conduct regulation, as the FCA starts to onshore rules and define its sovereign regulatory framework, post Britain leaving the EU.
“Rathi is also a fine choice to keep diversity at the heart of the FCA and he has already pledged that this will be part of his manifesto, along with driving forward the modernisation of the FCA and keeping the UK at the forefront of financial services.”
