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Financial Watchdog Chief Steps Down Early

Financial Watchdog Chief Steps Down Early

The head of the Financial Conduct Authority (FCA), Martin Wheatley, is to leave ahead of the end of his four-year contract after the Government said new leadership was needed.

Mr Wheatley was due to stay in the job until March 2016, but will now step down effective 12 September.

It has been reported that he made the decision to leave after being informed the Chancellor, George Osborne, would not be renewing his contract in the new year.

The deputy head of the organisation, Tracey McDermott, will replace Mr Wheatley until a new chief executive is found.

The FCA was created in 2013 to replace the Financial Services Authority (FSA) after it was discredited following the global financial crash.

It has the responsibility of overseeing the markets in the UK, while the Bank of England was tasked with overseeing the solvency of the banks.

The regulator is independent of the Government and is financed by the financial service industry itself.

Mr Wheatley has been chief executive since the creation of the body, and previously worked for the FSA as the Managing Director of the Conduct Business Unit.

He has developed a reputation as being tough on the industry; during his tenure the FCA has handed down some of the biggest fines in history to financial services bodies, including a collective fine of £1.1bn to five banks for fixing foreign exchange rates.

In a statement, Mr Wheatley 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."

In response to the announcement, Chancellor George Osborne said: "Britain needs a tough, strong financial conduct regulator.

"Martin Wheatley has done a brilliant job of launching the FCA in tough circumstances.

"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.

"The government is launching a worldwide search; Martin's replacement will, like him, need to be passionate about protecting consumers, promoting competition and completing the job of cleaning up the City, so it is the best-regulated market in the world."

Martin Wheatley will stay on at the FCA to advise the company's Board until the end of January 2016.