The head of the UK's top financial regulator has issued a stark warning that the slow pace of government and parliament is holding back vital deregulation designed to boost economic growth.
Regulator "Moving Fast" But Hampered by System
Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), told the Treasury Committee on Tuesday 16 December 2025 that his organisation is pushing forward with a "flurry" of measures to cut red tape. He stated the FCA is "moving as fast as [it] can" to meet the government's 'regulate for growth' agenda, which has included relaxing mortgage rules and embracing cryptocurrency products.
However, Rathi emphasised that the watchdog's progress is "dependent on a number of others in the system," specifically pointing to parliament and government departments. He noted that final sign-offs on regulatory processes often take several years, creating a significant bottleneck.
Call for Statutory Timetables to Accelerate Change
In a direct appeal for reform, Rathi suggested that introducing statutory timetables for Treasury approvals "may be no bad thing." He argued that such timetables could force a quicker pace, as regulators are often left waiting for crucial decisions from Whitehall.
"What we've seen... has been a lot of focus on what regulators should do," Rathi said. "I would say that pace and timetables... may be no bad thing, because we often have to wait."
Broader Political Frustration Over Delivery
Rathi's comments feed into a growing political debate about why promised deregulation has failed to ignite the UK's stagnant economy, which has seen no growth since June. His criticism echoes recent frustrations voiced by Prime Minister Keir Starmer, who told MPs about the "frustration" of encountering numerous "checks and balances" and "arms-length bodies" that delay government action.
Rathi defended the FCA's efforts but stressed that regulators cannot solve economic challenges alone. "We're doing our bit here, but the entire system needs to move – whether that's on pension funds, on tax, on some of the broader risk culture," he stated.
Budget Leaks: A Different Standard for the Private Sector
In a separate development, FCA chair Ashley Alder indicated that the watchdog would likely have investigated the series of leaks ahead of last month's Budget if they had come from a private company. While the FCA confirmed it would not launch a formal probe into the Treasury briefings on income tax, Alder noted: "Depending on the circumstances, we could well do that" if similar leaks originated from a listed firm.
This episode underscores the complex relationship and perceived double standards between public sector accountability and private sector regulation, adding another layer to the ongoing discussion about the pace and effectiveness of UK financial governance.
