FCA Appoints Sarah Pritchard as Deputy Chief Executive to Oversee Crypto and Payment Systems

The U.K. Financial Conduct Authority (FCA) has appointed Sarah Pritchard as its new deputy chief executive, a role created to reflect the regulator's expanding remit. This includes the integration of the Payment Systems Regulator and the regulation of stablecoin and crypto firms, as well as buy now pay later activities. The appointment underscores the FCA's commitment to adapting to the evolving financial landscape and ensuring robust oversight of emerging technologies and payment systems.

Pritchard, who joined the FCA in June 2021, has been instrumental in leading the supervision, policy, and competition division. Her responsibilities have included overseeing consumers and competition, as well as spearheading the FCA’s international work, particularly in the context of the G20 and Financial Stability Board initiatives on leverage in non-bank financial institutions. Her extensive experience in both the public and private sectors positions her well to support the FCA's increasingly international focus and its role in supporting U.K. growth and competitiveness.

The FCA's chief executive, Nikhil Rathi, highlighted Pritchard's contributions, noting that she has led some of the regulator's most high-profile work, including the overhaul of listing rules and landmark initiatives on financial advice and guidance. Rathi emphasized that delivering the FCA's ambitious new strategy requires continued reform, and Pritchard's breadth of experience makes her ideally suited to drive this forward.

Ashley Alder, chair of the FCA, also expressed support for Pritchard's appointment, stating that the complex international environment and the evolving expectations of the FCA necessitate strong leadership. Alder praised Pritchard's ability to drive reform and deliver bold proposals at pace, making her well-equipped to help Rathi lead the FCA day-to-day and cultivate key relationships.

Pritchard's new role as deputy chief executive will involve supporting the FCA's international focus and ensuring that the regulator maintains strong relationships both domestically and internationally. Her appointment is seen as a strategic move to enhance the FCA's capabilities in overseeing the rapidly evolving financial technologies, including cryptocurrencies and stablecoins, which have become increasingly significant in the global financial ecosystem.

The U.K. regulatory regime trails that of the nearby European Union, which already has a transnational licensing framework in place with its Markets in Crypto Assets (MiCA) regulations. The FCA, which currently certifies that companies on its crypto register comply with anti-money laundering rules, is in the process of creating a more comprehensive regime for the sector. It has said it plans to start authorizing crypto firms along the lines of its approach to traditional finance companies by 2026.

Pritchard's role will include an international element. The FCA wants to work with the crypto industry to develop regulation for the sector. Since then, it has circulated a number of discussion papers on digital assets and stablecoins for its regulatory program. She will work alongside CEO Nikhil Rathi, who was reappointed in April for another five years, and David Geale, a permanent executive director for payments and digital finance.