He will succeed Tracey McDermott, who has acted as interim CEO since Martin Wheatley stepped down from the post in September 2015.
Bailey, who is also Chief Executive of the PRA, will remain in post until his successor has been appointed, with the date of his departure yet to be confirmed. Andrew will continue to fulfil the full functions of his role as Deputy Governor and PRA CEO, including his international commitments, until his departure from the Bank.
Like his predecessors, Andrew will also become a member of the PRA Board and the Financial Policy Committee.
Earlier this month, the FCA confirmed that Tracey McDermott, interim Chief Executive, would not replace Martin Wheatley on a permanent basis after deciding to withdraw from the process in early December.
As CEO of the PRA since April 2013, Andrew has had responsibility for the regulation and supervision of around 1,700 banks, building societies, credit unions, insurers and major investment firms. Andrew has also overseen the introduction of new rules on capital for banks and insurers, new rules on banker remuneration and the introduction of concurrent stress testing for the major UK banks.
While retaining a role as Executive Director of the Bank, Andrew served at the Financial Services Authority from April 2011 until the body was abolished in 2013 and its responsibilities split between the PRA and FCA. Andrew has also been a member of the FCA Board since its inception in April 2013.
Bank of England Governor Mark Carney said:
“Andrew is an extraordinary public servant who has devoted his entire professional life to serving the people of the United Kingdom. During his career, he has worked across all of the Bank’s policy areas, combining leadership and innovation to deliver consistently the Bank’s policy objectives. His work in helping to manage the crisis and then to develop the post-crisis regulatory framework has been exemplary. He has made the PRA a highly respected and effective regulator and built a team of exceptionally dedicated colleagues. I would like to thank Andrew for his counsel and support since I joined the Bank and wish him every success in steering the FCA at this vital time in its history. I admire his commitment to ensuring the UK’s financial system serves its real economy and I look forward to continuing to work closely with him in future.”
Andrew Bailey said:
“The new system of financial regulation in the UK depends for its success on both conduct (FCA) and prudential (PRA) regulators achieving their objectives given by Parliament. Recent developments have shown that the most pressing issue in the system right now is the need for stable leadership at the FCA. Although it had not been my intention to leave the PRA during my term as CEO, a job that I enjoy enormously, it is a great honour to have been asked by the Chancellor to take on the job of FCA CEO. After a lot of thought I have decided to move and do all that I can to make the FCA effective and successful. My intention is to move once a successor is found for the PRA, and while I will of course not be involved in that process, it matters greatly to me that it provides for the successful future of the PRA.”
George Osborne commented:
"Andrew Bailey is the outstanding candidate to be the next Chief Executive of the Financial Conduct Authority, and I am delighted that he has agreed to lead it.
"We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job.
"His appointment is an important next step in the establishment of the FCA as a strong regulator, independent of government and industry.
"The government is determined that the financial sector operates to the highest standards. Anyone who has dealt with Andrew knows he will be tough but fair, and understands the flaws and merits of the sector better than anyone.
"Simply, I am confident that he will ensure that our financial services industry is the best regulated in the world.
"He has already done a superb job at the Prudential Regulation Authority; where he has shown how effective he is as a leader, able to build strong relationships and use his fine judgment to steer the PRA through its formative years.
"I would also like to thank Tracey McDermott for the excellent job she has done in leading the FCA in this interim period. Her experience, dedication and professionalism have been greatly appreciated."
