Nikhil Rathi has been reappointed as chief executive of the Financial Conduct Authority for a second five-year term and will be CEO until 2030.

There had been speculation in recent times that Mr Rathi, 45, would leave for a job in government.

He joined the regulator as chief executive in October 2020.

Chancellor Rachel Reeves today confirmed the reappointment of Mr Rathi until September 2030, in a move which the regulator said was critical for delivering key reforms to the regulatory environment.

She said: “Nikhil Rathi has been crucial in this government’s efforts to reform regulation so it supports growth and boosts investment – I am delighted he will be continuing his leadership of the FCA.

“We want the FCA to go further and faster to deliver this government’s Plan for Change and we look forward to continuing to work together to achieve this.”

Last December, the Prime Minister and Chancellor set the FCA the challenge of coming up with ideas to boost economic growth. The Chancellor has since reaffirmed her agenda to reform regulation with her Regulatory Action Plan, beginning with merging the Payment Systems Regulator into the FCA.

Mr Rathi said: “The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy. I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open. While we must go further and faster in this age of volatility, the UK is well placed as a major international financial centre.”

The FCA will publish its second report on how it has embedded its growth and competitiveness strategy later this summer.

The latest FCA remuneration report showed that Mr Rathi received a 3.3% increase in his total remuneration in 2023/34 - in line with salary increases for many FCA staff. His basic salary rose by £15,000 from £455,000 to £470,000, according to the report.

His total remuneration package for 2023/24 was £531,000 including pension and other benefits, equivalent approximately to a 3.3% salary increase year on year. The remaining £6,000 increase in his remuneration came from increased pension contributions made by the regulator.

Mr Rathi has pledged to, “revolutionise financial advice” and achieve “deep reforms” to break down the barriers to business growth in financial services.

He has also promised that there would be changes soon on mortgage affordability, digital payments, removing redundant data returns, supporting international promotion of UK financial services, opening up to more innovative firms and cutting barriers between regulators.