FCA’s Wheatley to Quit, Osborne Seeks Different Leader

Make no bones about it, the Treasury was behind Martin Wheatley’s surprise decision to stand down as the head of the Financial Conduct Authority.

Tracey McDermott, who has been overseeing supervision, will take over as acting chief executive when he steps down.

Wheatley will continue to act as an adviser to the FCA board until January 31 next year with a particular emphasis on the implementation of the Fair and Effective Markets Review, which…

Wheatley gave up his 2013/14 bonus as a result of that fiasco but saw it restored in 2014/15 as part of a 15% pay increase.

In a statement, Osborne said that “different leadership” was needed to move the FCA forward.

He added: “The government believes that different leadership is required to build on those foundations”. He was initially managing director of the conduct business unit but he was appointed chief executive designate of the FCA at the same time, becoming chief executive when the regulator was established in April 2013.

The City watchdog confirmed to FTAdviser that Mr Wheatley’s term on the board was up for renewal in March and chancellor George Osborne decided not to renew it. The government said it was launching a global search to find a replacement to Mr. Wheatley.

He will leave the City regulator in September, the FCA announced.

After hefty taxes on banks and a raft of new regulations, financial services giant HSBC is reviewing whether to keep its head office in London. FCA came in for criticism from politicians following a botched policy announcement that caused a sharp selloff in insurance company stocks. The FSA had supervised both conduct and financial soundness, but Osborne broke it up, handing the latter back to the Bank of England.

He said: “I am incredibly proud of all we have achieved together in building the FCA over the last four years. I know that the organisation will build on that strong start and work so that the financial services industry continues to thrive”, Mr Wheatley said in a statement.