Leading regulatory and compliance expert warns new FCA CEO of the need to grasp immediately the issue facing financial services firms in the UK.
The appointment of Nikhil Rathi as CEO of the Financial Conduct Authority comes at a crucial time for the UK economy; with the prospects of the UK outside of the EU, and the potential of another wave of the COVID-19 pandemic spreading causing havoc across the economy.
Nikhil Rathi takes up his post as CEO of the FCA in October this year, a matter of weeks before the Brexit Transitional Period ends on 31 December. The UK will have to make an urgent decision whether to maintain equivalence with EU financial regulations or diverge and set its own rules.
Paul Grainger CEO of regulatory and compliance consultancy Complyport said:
“Have no delusions that the incoming CEO to the FCA Nikhil Rathi will have no honeymoon period. I suspect he will have to get going from day 1 of his term in office. These are absolutely crucial times for financial services companies in the UK. He will have to juggle the post COVID-19 economy, post-Brexit regulation, consumer protection and financial technology all at the same time.”
Two-thirds of FCA initiatives have been delayed by coronavirus — covering everything from consumer protection to climate risk and these according to the FT “must be put back on track”.
The issue of financial services regulatory relationship with the EU will be at the top of the agenda for Nikhil Rathi. He will face a choice between a relationship with the EU which is either codified in a series of Equivalence Agreements or the UK leaves the Brexit transition without an agreement.
Paul Grainger CEO of Complyport underlined the importance maintaining regulatory equivalence with the EU:
“Financial services firms across the UK want clarity and certainty over equivalence so that UK companies can continue to access EU markets. The fund management industry particularly will want to see from the FCA a clear vision surrounding ongoing regulations, particularly when it comes to equivalence with Europe post-Brexit.
The FCA and the government have demonstrated they can be decisive and show leadership when there is a need and a mind to do so. The FCA has already issued directive guidance to capital markets participants and listed companies during the COVID-19 pandemic”.
Notes to Editors:
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Notes to Editors:
- To arrange an interview with Paul Grainger CEO of Complyport Ltd please email or call John Kaponi
- Complyport is a leading compliance and regulatory consultancy providing bespoke, practical solutions for all manner of regulated firms both in the UK and overseas. Our specialist compliance services expertise can either sit alongside your current compliance teams or, for an independent solution, we can bring our team in-house.
- Established in 2002, Complyport combines former regulators, industry practitioners and legally qualified individuals to offer our clients an unparalleled, professional team.