Meet the new City minister
Lucy Rigby KC MP takes over responsibility for financial services policy but who is the ex Slaughter & May minister?
Who is the new City Minister?
“I specialised in competition law and spent time in the City, at the regulator and at Which?, which gave me particular insight into how markets and regulation work – and can work better – for consumers, businesses and the country as a whole.” Those are the words of the new City Minister, Lucy Rigby KC MP in her maiden speech following last year’s general election. She has since had a meteoric rise through the ranks, serving on the Treasury Select Committee, as a Parliamentary Private Secretary at the Ministry of Justice, and most recently as Solicitor General.
City experience
While serving as Solicitor General, Rigby gave a speech to Canada Solicitors’ Company, celebrating what she called the “positive, disruptive, ever-creative spirit of the City”. Those weren’t just warm words. Before joining Parliament, Rigby built a career in the City, starting as a trainee and associate at ‘magic circle’ firm Slaughter & May, before working at the Office of Fair Trading and Which?, and most recently being a partner at litigation boutique Hausfeld.
What the City Minister does
The City Minister, officially called the economic secretary to the Treasury, is responsible for financial services policy, reform and regulation, including things like financial conduct and stability, financial services tax, such as the bank levy, and sanctions, economic crime and money laundering.
Rigby’s inbox
When Rigby first arrives at HM Treasury, she will find her red box brimming full. The top priority will be clear: growth. It is an area Rigby has an interest in, having been co-chair of the Labour Growth Group, an influential caucus of Labour MPs that says it is “committed to tearing down the barriers to growth”.
There is already a developed policy framework in place, in the form of the financial services growth and competitiveness strategy and the measures announced by the Chancellor in her recent Mansion House speech. Yet, there is an opportunity for Rigby to use her legal rigour to develop the government’s approach from a collection of policies into a coherent plan for growth.
Areas that Rigby might want to look at include improving the operational performance of regulators, encouraging productive investment, support for fintechs and the UK’s approach to crypto regulation. There is also ongoing regulatory reform taking place in a range of areas, from investment advice to consumer credit to payments. All of these could benefit from a more muscular strategic steer from HM Treasury.
AI
Although the FCA has said it plans to avoid additional regulations for AI by relying on existing frameworks, it is an area that Rigby will want to keep a close eye on. Besides the rapid development of AI technology, it is questionable how sustainable the FCA’s approach is. To start with, it has created uncertainty about what the regulatory expectation is in relation to AI. This will become increasingly apparent as adoption of the technology increases. At the same time, the government’s broader approach to AI regulation is in flux. Initially, the government planned limited regulation of AI but it is now planning a ‘comprehensive’ AI bill for the 2026 King’s speech. It remains to be seen how financial services will fit into this picture but Rigby will have a key role in shaping the debate on this.
An opportunity to serve
Whether on growth, AI, crypto or financial crime, Rigby’s appointment provides a chance for fresh thinking by someone who understands the City. She is in a position to shape not just the details of financial services policy but the strategic direction of the UK’s growth agenda. Let’s hope she seizes the opportunity.
Omar Salem is a regulatory partner at Fox Williams