The Financial Conduct Authority is looking to enforce “less rules in the future” as part of a wider governmental deregulation push, according to statements made by chief executive Nikhil Rathi.
In a recent interview, Rathi also stressed the need to move “thoughtfully but also expeditiously” on regulatory reform, saying: “We’re moving to an outcomes based approach that will mean less rules in the future.”
He adds: “As we’ve left the European Union, we can also look at which rules we need to keep and which rules we can actually adjust.”
Deregulation as part of government policy to increase growth was also identified by Rathi as a factor motivating the FCA in this direction. National economic growth remains an ongoing concern for the current Labour government, with unemployment recently reported as being at a five year high.
Rathi also cited the importance of pension reform, saying this was a positive development during his time at the FCA, creating the potential for members to access market investments with “better returns over a twenty or thirty year period.”
Rathi also identified a shifting geopolitical situation as impacting the FCA’s priorities, claiming that the world is arguably in its most dangerous period since the Second World War.
Rathi says: “When it comes to conduct and markets, the foundations are shifting and we’ve needed to think very differently. You also see players in the market changing. Both big tech and traditional financial services firms are also innovating and bringing new ideas to the table.”
The most acute issue being dealt with currently by the FCA was financial crime according to Rathi, including fraud but also unauthorized promotions and further challenges to market integrity.
Rathi made the statements while speaking on the Fairer Finance podcast with host Eve McGrady.
Rathi has been CEO of the FCA since 2020, and in 2025 was confirmed for a second five year term. Having previously been a private secretary for UK prime ministers Tony Blair and Gordon Brown, he joined the London Stock Exchange as chief of staff in 2014.
