Tracey McDermott, acting chief executive of the Financial Conduct Authority, has quit the City regulator after deciding not to apply for the job permanently.
McDermott will leave the FCA in July when Andrew Bailey joins as chief executive from the Bank of England. She has worked at the FCA and its predecessor, the Financial Services Authority, for 15 years.
She took over at the FCA last September after Martin Wheatley was forced out by the chancellor, George Osborne, and was regarded as a leading candidate for the job. Osborne then revealed in January that McDermott did not want the job, prompting her to go public with her withdrawal from the running.
Osborne decided not to renew Wheatley’s contract after his hardline approach antagonised banks and other companies in the City. McDermott, the FCA’s former enforcement head, was closely linked with Wheatley’s tough stance and imposed large fines on banks during the Libor crisis.
Osborne appointed Bailey, head of the Bank of England’s regulatory division, to replace Wheatley in late January. Bailey was seen as less antagonistic towards the banks as Osborne sought to mend relations with HSBC and other big City firms to put an end to so-called bank bashing.
John Griffith-Jones, chairman of the FCA, said: “Tracey has done a terrific job leading the FCA over the last seven months, building on the enormous contribution she has made in her various roles over the previous 15 years.
“Transitions are always challenging and her energy and clarity of purpose have been invaluable in steering the organisation in the right direction. I know she will continue to lead the FCA with the same commitment until Andrew Bailey arrives in July.”
Osborne had to fend off criticism that he encouraged the FCA at the end of last year to abandon a review into banking culture. McDermott denied the FCA was subjected to political pressure and said the watchdog had not gone soft on the banks.
