View more on these topics

New FCA boss Andrew Bailey faces ‘policy vacuum’ post-Brexit


The new FCA chief executive Andrew Bailey is expected to have to deal with a “significant policy vacuum” in the aftermath of the Brexit vote.

The former Bank of England deputy governor and Prudential Regulation Authority head began his new role as FCA boss on 1 July.

Bailey succeeds Tracey McDermott, who was been interim chief executive since Martin Wheatley was forced out of the regulator by Chancellor George Osborne in September 2015.

Law firm Pinsent Masons insurance director Tobin Ashby says Bailey has joined the FCA at “a critical time” but believes with his background he could be a good person at times of instability.

He says: “Bailey will have a macro-scale view that others might not have but it will be very difficult for him to get to grips with his role, especially looking at the next few months and years.

“I wouldn’t be surprised given his background if he’ll try to keep momentum and maintain the same direction of travel in the approach to European regulations as the FCA has now.”

Independent consultant Richard Hobbs says there are already calls for many initiatives from the FCA and other regulators to be put on hold because of the Brexit vote.
He believes uncertainty about when the UK formally begins the process of leaving the EU will put a block on further regulatory developments.

Hobbs says: “Until Article 50 is invoked, we’ll get a significant policy vacuum that Bailey can’t do anything about. No one’s going to have energy for that because no one knows what the future holds.

“That said, the UK regulatory regime won’t change for now because the largest financial institutions need access into Europe.”

Apfa director general Chris Hannant says Bailey’s arrival does not mean “we are not going to see the FCA change overnight”.

He says: “The regulator’s priorities remain the same, including the Financial Services Compensation Scheme review or making sure we can see ready access to advice for a wider population. The FCA also needs to look again at the Financial Advice Market Review, hopefully before 2019.”

Hannant says the question mark over the next steps post-Brexit remain, especially around how firms will need to cope with European regulations such as Mifid II and Priips.

He notes the regulator will need to adapt based on whether the equivalent EU legislation needs to be applied in the UK and whether the UK continues to be part of the single market.

Hobbs adds: “Bailey is better plugged into the Treasury and Bank of England than his predecessor but it’ll be some time before we can see any change of direction at the regulator,if indeed we see any at all, given the Brexit vote.”



Andrew Bailey begins reign as FCA chief

Former Prudential Regulation Authority head Andrew Bailey begins his new role as Financial Conduct Authority chief executive today. Bailey succeeds Tracey McDermott, who was been interim chief executive since Martin Wheatley exited in September 2015. The PRA’s most recent annual report shows Bailey was paid a total of £350,000 in 2015/16, this rises to £460,000 at the […]


Is Andrew Bailey the right man to lead the FCA?

Bank of England deputy governor and Prudential Regulation Authority chief executive Andrew Bailey has been named as the new chief executive of the FCA. Bailey, who has led the PRA for nearly three years, will succeed Tracey McDermott, who has been interim chief executive since Martin Wheatley stepped down in September. He is expected to take up the position […]


New FCA head is Bank of England’s Andrew Bailey

The Bank of England’s Andrew Bailey is to become the new head of the Financial Conduct Authority. Bailey will succeed Tracey McDermott, who has been interim chief exeuctive since Martin Wheatley stepped down in September 2015. Bailey will take up the position once a replacement has been found for him at the PRA, where he […]

Greg Broomer 2

Survey looks at the challenges facing businesses post auto-enrolment

A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]


News and expert analysis straight to your inbox

Sign up