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| City watchdog chief quits after George Osborne vote of no confidence | City watchdog chief quits after George Osborne vote of no confidence |
| (34 minutes later) | |
| Martin Wheatley, the tough-talking head of Britain’s financial watchdog, has quit after George Osborne said his contract would not be renewed next spring. | Martin Wheatley, the tough-talking head of Britain’s financial watchdog, has quit after George Osborne said his contract would not be renewed next spring. |
| Wheatley will leave the the Financial Conduct Authority later this year after helping set up and spearhead the chancellor’s beefed-up regulator in its first two years. | Wheatley will leave the the Financial Conduct Authority later this year after helping set up and spearhead the chancellor’s beefed-up regulator in its first two years. |
| Related: The FCA: its own worst enemy | Related: The FCA: its own worst enemy |
| The watchdog’s remit to clamp down on misselling prompted it to levy a record £1.4bn in fines last year and keep a focus on bank efforts to clean up their acts in the wake of the £20bn payment protection insurance scandal. | The watchdog’s remit to clamp down on misselling prompted it to levy a record £1.4bn in fines last year and keep a focus on bank efforts to clean up their acts in the wake of the £20bn payment protection insurance scandal. |
| Osborne’s vote of no confidence in Wheatley immediately prompted speculation that it was his confrontational style and attacks on bank misbehaviour which had generated a loss of support inside No 11. | Osborne’s vote of no confidence in Wheatley immediately prompted speculation that it was his confrontational style and attacks on bank misbehaviour which had generated a loss of support inside No 11. |
| John Mann, a member of the influential Treasury select committee, said the chancellor was “wrong” and the decision “undermined the independence of the regulator”. | |
| He said: “To play politics with our biggest financial regulator shows the chancellor hasn’t learnt the lessons of the financial crash.” | |
| Mann said: “Martin Wheatley has led the FCA with distinction since its creation following the failures of the FSA. Under his watch the biggest banks have been held accountable for their failings, predatory payday lenders have been brought to task and consumers have finally had someone stand up for them.” | |
| Sources close to the Treasury denied that Wheatley’s departure would bring a more softly-softly approach, saying that his successor would still get support for tackling poor practice in the City. | Sources close to the Treasury denied that Wheatley’s departure would bring a more softly-softly approach, saying that his successor would still get support for tackling poor practice in the City. |
| Osborne said: “Britain needs a tough, strong financial conduct regulator. Martin Wheatley has done a brilliant job of launching the FCA in tough circumstances. | 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. | “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.” | “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.” |
| It is understood that several banks and insurers have complained to the chancellor about the FCA under Wheatley, whom they accuse of having a “guilty until proven innocent” attitude to regulation. Wheatley famously said he would “shoot first and ask questions later” at the launch of the watchdog. | It is understood that several banks and insurers have complained to the chancellor about the FCA under Wheatley, whom they accuse of having a “guilty until proven innocent” attitude to regulation. Wheatley famously said he would “shoot first and ask questions later” at the launch of the watchdog. |
| The FCA is the second pillar of the chancellor’s regulatory system alongside the Bank of England’s financial policy committee, which supervises the financial security of the banking and insurance sectors to prevent a repeat of the 2008 financial crisis. | The FCA is the second pillar of the chancellor’s regulatory system alongside the Bank of England’s financial policy committee, which supervises the financial security of the banking and insurance sectors to prevent a repeat of the 2008 financial crisis. |
| Wheatley, who was also head of the FCA’s predecessor, will continue to act as an adviser to the FCA board until 31 January next year, the regulator said, to help implement the Fair and Effective Markets Review, which he co-chaired. | Wheatley, who was also head of the FCA’s predecessor, will continue to act as an adviser to the FCA board until 31 January next year, the regulator said, to help implement the Fair and Effective Markets Review, which he co-chaired. |
| John Griffith-Jones, the FCA chairman, said: “Martin has done an outstanding job as chief executive setting up and leading the FCA over the last four years. We owe him a lot and I and my board would like to thank him for his great efforts in setting up the organisation and for the contribution he has made to putting conduct so firmly at the top of the financial services agenda.” | John Griffith-Jones, the FCA chairman, said: “Martin has done an outstanding job as chief executive setting up and leading the FCA over the last four years. We owe him a lot and I and my board would like to thank him for his great efforts in setting up the organisation and for the contribution he has made to putting conduct so firmly at the top of the financial services agenda.” |
| Wheatley said the FCA would “build on that strong start and work so that the financial services industry continues to thrive”. | Wheatley said the FCA would “build on that strong start and work so that the financial services industry continues to thrive”. |
| Tracey McDermott, currently director of supervision, will take over as acting chief executive from 12 September while the search for a permanent chief executive takes place. | Tracey McDermott, currently director of supervision, will take over as acting chief executive from 12 September while the search for a permanent chief executive takes place. |