The UK’s financial regulator will focus more on cyber security, defence and technology amid rising threats.
Addressing top figures from the City of London this week, the Financial Conduct Authority (FCA)’s chief executive Nikhil Rathi said his regulatory body had to direct its role of monitoring financial services in support of national security.
“Conflict today hits balance sheets, funding, markets and consumers as much as any battlefield,” Rathi said, “and we are not prepared, tactically or strategically.
“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.”
Rathi described how security threats today target the UK’s “digital and financial map”, its data centres, payment networks, financial infrastructure and cloud software.
“Such vital infrastructure can be vulnerable: Ukraine’s grid targeted. ATMs in conflict zones down, settlement infrastructure at risk, shipping lanes blocked. Or the many drone incursions at airports,” he said.
“In this environment, separating financial services from national security is outdated and dangerous.”
The FCA boss said the organisation will be investing in “cutting edge security technology” to tackle “illicit finance” and support strategic defence investments.
“The truth is the whole of Britain is a defence town now. As is this Square Mile. That changes what national security means.
“Finance must be at the centre of our defence – helping to fund, insure and build the resilience on which our security depends.”
