Speech by Nikhil Rathi, FCA chief executive at the Corporation of the City of London’s annual City Dinner.
Lord Mayor, this evening I want to discuss the role finance must play in our national security.Few have done more than you to put security and defence at the heart of the City’s conversation. You are, after all, the decorated chair of the Square Mile reservists – in which the Lady Mayoress herself serves. I can see what you’re thinking: Goodness, Nikhil, couldn’t you go for something a little lighter? Something less contentious, like how to define high commission on motor finance?You may rather I take up your call on risk warnings or talk about our supervisory approach and the need for more consistency and pace all the way through our organisation. Feedback we have heard and are responding to. You perhaps think I have nothing to offer but blood, toil, guidance and compliance.Not so. Security is bound up with the FCA’s duty to protect and enhance the integrity of our financial system.Conflict today hits balance sheets, funding, markets and consumers as much as any battlefield. And we are not prepared, tactically or strategically.Whether it’s a cyber-attack or a production shock – they move yields and test confidence. Protection gaps shake market integrity.Britain will not remain secure nor competitive if we treat finance as separate from our security – and if investors treat defence as separate from growth.With hard fiscal constraints and volatile bond markets, government cannot carry this responsibility alone.Finance must be the bridge between mission and means, technology and capability.