McDermott ruled herself out of taking the role on a permanent basis at the start of the year, having been among those considered to fill the regulator’s top role after it was left vacant when Martin Wheatley resigned in July 2015.
She agreed to continue as acting chief executive until a permanent replacement was in post but, until now, had given no indication that she would not resume her previous role of director of supervision and authorisations.
This role has been filled on an interim basis by Megan Butler, who has been seconded from the Prudential Regulation Authority (PRA). No decision has yet been made regarding who will fill the role on a permanent basis.
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 fifteen 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 and I and the board are grateful for her unstinting support.”
Andrew Bailey, the Bank of England’s deputy governor for prudential regulation and chief executive of the PRA, has been appointed chief executive of the FCA for a five-year term.
He will assume his new role on 1 July.