Andrew Bailey To Lead City Regulator FCA

Andrew Bailey, the head of Prudential Regulation at the Bank of England, is to be the new chief executive of the Financial Conduct Authority (FCA).

The announcement was made by the Chancellor after George Osborne's shock decision last year not to renew the contract of the FCA's-then head, Martin Wheatley - saying the watchdog needed "different leadership".

Mr Osborne said in a tweet: "Delighted to announce Andrew Bailey will lead @TheFCA.

"He was the most respected and qualified candidate for this crucial job."

Mr Bailey's current role sees him lead supervision of around 1,700 banks, building societies, credit unions, insurers and major investment firms and guard against risks.

The Chancellor's choice is a crucial one as the regulator seeks to overcome a torrid few months in which it has been accused of going soft on the City.

It (Other OTC: ITGL - news) emerged last month that the FCA had decided to abandon a review of culture in the banking sector.

Sky News reported last night how another leading contender to succeed Mr Wheatley had fallen near the final hurdle.

Greg Medcraft is the head of the Australian securities regulator.

Among the other names mentioned in connection with the post were Xavier Rolet, boss of the London Stock Exchange Group; Mark Branson, chief executive of Switzerland's Financial Market Supervisory Authority (Finma); and Charles Roxburgh, a senior Treasury official.

Tracey McDermott, the acting FCA chief executive and a long-standing UK regulator, withdrew her application for the job in December.

The Treasury said Mr Bailey would start work - with a five-year term - once a successor was in place at the PRA.

Mr Osborne added: "We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job.

"His appointment is an important next step in the establishment of the FCA as a strong regulator, independent of government and industry.

"The government is determined that the financial sector operates to the highest standards. Anyone who has dealt with Andrew knows he will be tough but fair, and understands the flaws and merits of the sector better than anyone."