Nikhil Rathi, the Indian-origin head of the UK’s Financial Conduct Authority (FCA), has been reappointed for a second five-year term by Chancellor of the Exchequer Rachel Reeves. Lauding his leadership as essential to the government’s reform mission, Reeves emphasised that Rathi’s role would be pivotal in accelerating economic growth and investment in the country.
As the chief regulator overseeing over 40,000 financial institutions, the FCA plays a vital role in upholding transparency and trust in the UK’s financial markets. The Treasury said Rathi would continue steering the FCA as it strives to eliminate outdated and redundant regulations, positioning the UK as a global business hub—without compromising on consumer protections.
Rathi expressed pride in the progress made during his first term, which included structural reforms and higher standards. “We must now move further and faster amid today’s uncertainties. The UK remains strongly positioned as a global financial centre,” he said.
Rathi, 45, traces his family heritage to Rajasthan and Madhya Pradesh, though he was born and brought up in northern England. His first appointment as FCA chief came in 2022 under then-Prime Minister Rishi Sunak, following his tenure as the head of the London Stock Exchange.
Since December last year, following directives from Prime Minister Keir Starmer and Chancellor Reeves, the FCA has introduced several policy measures aimed at fuelling growth. These include easing mortgage regulations to improve home ownership access and enhancing support for emerging financial service firms.
FCA Chair Ashley Alder supported Rathi’s reappointment, describing him as “the right leader in testing times.” He commended Rathi for reshaping the FCA into a more responsive organisation that has raised standards in consumer protection and capital accessibility.
In a move toward streamlined oversight, the FCA will also absorb the Payment System Regulator. This merger is part of a broader initiative to simplify the regulatory landscape and eliminate barriers that hinder innovation and business expansion.
As the UK navigates a volatile global economy, Rathi’s renewed leadership signals continuity in its efforts to modernise financial governance and support long-term growth.
