Andrew Bailey, the ex-deputy governor of the Bank of England has been appointed as the new chief executive of the FCA.
The FCA has appointed a new permanent chief executive. Andrew Bailey, currently chief executive officer of the Prudential Regulation Authority and deputy governor for prudential regulation at the Bank of England, will begin a five-year term when his successor at the PRA has been found. He will take over from Tracey McDermott who has been acting chief since September.
Mr Bailey’s appointment comes after the regulator announced a search to replace Martin Wheatley. While bankers welcomed the announcement, many advisers said they would wait and see.
“I think it is great,” said Minesh Patel, London-based chartered financial planner at EA Financial Solutions, but added, “independent financial advisers and the advice sector are a small part of the financial services system and greater damage can be done by the banks and investment companies and large institutions.”
He further explained that previously the FCA had been “heavy-handed” in its approach so it is time to wait and see how the new leadership unveils.
Chancellor George Osborne described Mr Bailey as the “most respected, most experienced and most qualified person in the world” for this job.
As the market has applauded the appointment, general sentiment is that Mr Bailey’s background in economic policy and regulation will help the financial services sector.
“Too often the different parts of regulation and economic policy have been too divorced,” Mr Patel said. “I think the economic downturn in 2008 was caused by the regulation of the banking system so a greater interaction between the two can only lead to a stronger economy for a stronger financial services system.”
Mr Wheatley, who left the FCA in September, expressed his disappointment over stepping down from the position.
A fair and effective markets review, implementing a senior manager regime, completing work on consumer credit regime and Mifid were among changes he wanted to complete before leaving the regulator.