Incoming FCA boss Nikhil Rathi has told MPs that he “hasn’t applied to this job to be liked” as he undergoes questioning by the Treasury committee for the first time.

Rathi was appointed chief executive of the watchdog last month after Andrew Bailey departed for the Bank of England governor role earlier this year.

He has no firm start date, however; since 2016 the Treasury committee has secured a deal allowing it to interview the next FCA chief executive before they are confirmed.

Asked by MP Rushanara Ali at the hearing whether he would rather be feared or liked as a leader when he takes on the role, Rathi said: “I haven’t applied for this job to be liked. Its not a job I think you can take if you want to be liked.

“I wouldn’t want to define myself as being feared either. I would like the FCA to be defined as tough, assertive, thoughtful, decisive, and working with pace and agility and proactivity.”

“I would hope that those who have worked with me in the past would describe me as an inspirational leader, someone who leads by example, empowering the senior team.”

Opening the meeting, committee chair Mel Stride applauded comments already made by Rathi towards a “transformative agenda” for the FCA, which would focus on a more preventative approach to consumer harms, and strong and prompt enforcement.

Rathi told the MPs that the watchdog is “never going to be able to have zero failure and prevent all risks”.

However, he said that by focusing on three key areas – having a strong data strategy, a joined up regulator, and diversity of thought internally – he could help the FCA identify and prevent issues earlier.

Under Rathi, the FCA will use tools like unconscious bias training, better mentoring and no-name CVs to ensure diversity of people, he said.

The watchdog should be “comfortable having uncomfortable conversations”, he added.

“Given the split between large firms and small firms I want to make sure the best people want to work on supervising small firms as well to make that a high profile part of what the FCA does,” he added.

Before the pandemic, Rathi said the the FCA was having conversations about “how to adjust the principles of business to build a stronger consumer duty into there”.

“I would like to see how we can return to that earlier rather than later,” he said. “That will send a very strong message to the industry about the importance we are attaching to treating customers fairly and consumers understanding the decisions they are making.”

However, he noted that the FCA would face tough decisions on how to protect consumers as government financial support winds down after the Covid-19 outbreak, suggesting it would benefit from being “gradually adjusted”.

He said: “In the short term, this is one of my major motivations for taking up the role – we are dealing with an extraordinary situation with consumers across the country in very difficult circumstances, and many vulnerable consumers in particular facing challenges.”

Rathi is the former chief executive of the London Stock Exchange and holds a degree in Politics, Philosophy and Economics from Oxford. He will be paid an annual salary of £455,000 – less than the £589,000 paid to Bailey in 2018 – a 12 per cent pension, and will not be entitled to a bonus or paid any other benefits.