FCA chief executive Martin Wheatley to stand down

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.

In a statement, the FCA said Tracey McDermott will take the role of acting chief executive until a replacement is found.

Wheatley joined the FSA in September 2011 as managing director of its conduct business unit, before becoming chief executive of the FCA in April 2013.

Wheatley’s resignation kicks off the FCA’s hunt for a new chief executive.

The UK Treasury informed Mr Wheatley a few days ago that it would not be renewing his contract next year, prompting him to resign, according to people familiar with the matter.

Britain’s regulators were tarnished by the 2007-09 financial crisis when undercapitalised banks had to be rescued by taxpayers.

Mr Wheatley, who will leave his post in September, launched the FCA with a pledge to “shoot first and ask questions later” in his drive to clean up the City.

“Now that phase is complete, the government believes that different leadership is required to build on those foundations and take the organisation to the next stage of its development”.

Commenting on the news, ICAEW chief executive Michael Izza said, “Trying to rebuild trust in financial services is a huge undertaking”. The FCA came in for criticism from lawmakers following a botched policy announcement that caused a sharp sell-off in insurance company stocks.

Wheatley will continue to act as an adviser to the FCA board until 31 January 2016.

Under his watch, helped by McDermott’s stint as head of enforcement before she moved to supervision, the regulator has levied record fines on banks after they were caught trying to rig the Libor interest rate benchmark and currency markets.

John Griffith-Jones, the FCA chairman, said: “Martin has done an outstanding job as chief executive setting up and leading the FCA over the last four years”. “I know that the organization will build on that strong start and work so that the financial services industry continues to thrive”.