Correspondence

Letter to the Chancellor from Charles Randell CBE 15 October 2021

Published 15 October 2021

This was published under the 2019 to 2022 Johnson Conservative government

Rt Hon Rishi Sunak MP Chancellor of the Exchequer HM Treasury 1 Horse Guards Road London SW1A 2HQ

15 October 2021

Dear Chancellor,

I am writing to ask you to initiate the process of identifying a successor chair for the Financial Conduct Authority and the Payment Systems Regulator, with a view to my stepping down in Spring 2022.

It has been a privilege to chair these organisations through a period when the UK has reshaped its international regulatory relationships and responded to the challenges of a global pandemic while the FCA has at the same time put in train a programme of wholesale transformation.

During this period the FCA has given priority to protecting vulnerable people, including from unsustainable credit and unfair pricing; overseen the continued delivery of essential financial services throughout the UK’s withdrawal from the EU; and maintained our position as an internationally respected regulator, taking the lead in global initiatives such as environmental, social and governance (ESG) issues, replacing benchmarks like LIBOR and supporting financial innovation and the competitiveness of our financial services through world-leading programmes such as the regulatory sandbox. The PSR has brought an important competition case in the prepaid cards market to a successful conclusion, introduced confirmation of payee and worked to protect consumers from payment scams.

In 2019 we put in train the wholesale transformation of the FCA to better support consumers and markets in a fast-changing digital age. We also commissioned three independent reviews into the past performance of the FCA and its predecessor the FSA, which together cover more than a decade. We have taken immediate action in response to the recommendations we have so far received and are embedding the necessary changes through our transformation programme.

When the Covid-19 pandemic struck in 2020, we showed that this transformation was already under way, as we acted swiftly to help consumers and businesses.

This summer we published more details of our plans for completing the transformation of the FCA. I am confident that these plans will realise our ambition to be a more assertive, adaptive and innovative regulator, and reinforce our commitment to demonstrating the public value we create. We will be clear about the measurable improvements we aim to deliver in outcomes for consumers as they use financial services to meet their everyday needs. We will also redouble our efforts to tackle bad actors, focussing on scams and other financial crimes in the area we regulate. These are essential foundations for a sustainable, world-leading financial sector.

Although this transformation is well under way, it will not be complete by the end of my term. It has been a privilege to chair the FCA and PSR during this extraordinary and challenging period and to work with many dedicated and talented public servants. As our newly established executive team begin to roll out their strategies next year to complete the transformation of the FCA, it is the right time to hand over the oversight of the rest of the transformation programme to a chair who can see it through to completion.

Your contribution to decisions about our leadership, to the financial sector policy response to the coronavirus, and to our transformation plans, has been significant. A strong and independent financial conduct regulator with clear and consistent objectives enables the financial sector to grow sustainably by serving the interests of our fellow citizens. I am very grateful for your continuing support of our work.

Yours sincerely,

Charles Randell

Chair