The Chancellor 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.”
He revealed the government is launching a worldwide search adding: “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 Osborne told Wheatley to resign or he would not renew his board contract with the FCA which is due to expire in March next year.
Wheatley will remain in position until 12 March 2015 and will continue to consult with the organisation on the fair and effective markets review.
Tracey McDermott will take over as acting chief executive while the search for a permanent chief executive takes place.
Osborne added: “I am pleased that Tracey McDermott has agreed to take on the role of acting chief executive and I look forward to working with her.”
Wheatley said: “I am incredibly proud of all we have achieved together in building the FCA over the last four years. I know that the organisation will build on that strong start and work so that the financial services industry continues to thrive.”
