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Randell quits FCA early: Financial watchdog hunts for new boss

Randell quits scandal-hit FCA early: Financial watchdog hunts for new boss amid overhaul of its strategies










The chairman of the Financial Conduct Authority (FCA) is leaving his job a year sooner than deliberate.

Charles Randell, who took over on the watchdog in April 2018, will depart subsequent spring and has requested Chancellor Rishi Sunak to start the duty of discovering a alternative.

While Randell had initially been appointed to serve a five-year time period, the 63-year-old mentioned ‘now could be the fitting time’ for a new chairman to supervise the conclusion of a serious revamp on the regulator.

Packing up: Charles Randell mentioned it was ‘a fantastic privilege’ to be chairman of the Financial Conduct Authority

‘Being chairman of the FCA has been a fantastic privilege,’ he mentioned.

Sunak added: ‘I wish to thank Charles Randell for his work as Chairman of each the Financial Conduct Authority and the Payment Systems Regulator throughout this necessary interval.’

During his tenure, Randell spent a lot of his time battling criticism of the regulator following a sequence of scandals which have left many questioning its effectiveness.

On his watch, the FCA was criticised over its failure to intervene earlier than the collapse of star stock-picker Neil Woodford’s £3.1billion Woodford Equity Income Fund in October 2019.

The funding supervisor’s flagship fund left hundreds of buyers out of pocket when it collapsed, successfully ending Woodford’s 30-year career as a high-profile money supervisor.

Earlier this year, the FCA was condemned over its dealing with of the London Capital & Finance (LCF) affair, which noticed a regulated funding agency extract over £237million from the sale of poisonous minibonds to over 11,600 savers earlier than collapsing in early 2019.

An unbiased report into the LCF scandal was scathing, with former Court of Appeal choose Dame Elizabeth Gloster castigating the FCA for ‘unacceptable’ delays in offering paperwork which had slowed down the completion of the report.

The FCA additionally confronted criticism final year for its dealing with of the Connaught Income Fund, which went bust in 2012 inflicting tens of millions in losses on buyers.

An unbiased review into the matter by barrister Raj Parker, printed final December, mentioned the regulator ‘might have acted in a more practical option to defend buyers’ and that regulation of the folks and entities related to the Connaught fund was ‘not applicable or efficient’.

The FCA’s lacklustre efficiency over the past 5 years tarnished the fame of Bank of England governor Andrew Bailey, who headed the watchdog between 2016 and 2020.

However, chief government Nikhil Rathi is spearheading a wide-ranging overhaul of the regulator in an try to attract a line underneath the string of scandals.

Rathi, 42, who took over in October final year, is proposing to scrap bonuses for workers, saying the funds had ‘not been efficient’ at bettering efficiency and will undermine confidence within the regulator.

The transfer adopted outrage at revelations that the FCA paid out over £125million in bonuses since 2016 regardless of its failure to guard buyers from shedding their money by way of a serie of main scandals.

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