UPDATE 1-London Stock Exchange's Rathi to head UK financial watchdog

(Adds more detail)

LONDON, June 22 (Reuters) - Nikhil Rathi, head of the London
Stock Exchange's UK arm, has been appointed as chief executive
of the Financial Conduct Authority (FCA), Britain's finance
ministry said on Monday.

Rathi, a former finance ministry official, will play a key
role in helping Britain's financial sector to navigate its
departure from the European Union, its biggest customer.

"In the years ahead, we will create together an even more
diverse organisation, supporting the recovery with a special
focus on vulnerable consumers, embracing new technology, playing
our part in tackling climate change, enforcing high standards
and ensuring the UK is a thought leader in international
regulatory discussions," Rathi said in a statement from the
finance ministry.

The FCA has been led on an interim basis by Christopher
Woolard since March, when Andrew Bailey left to become governor
of the Bank of England.

"I am confident that Nikhil will bring the ambitious vision
and leadership this organisation demands," British finance
minister Rishi Sunak said.

Before joining the LSE, Rathi was director of the finance
ministry's financial services group, leading work on EU and
international financial services.

He has been appointed by the FCA for a five-year term.

(Reporting by Huw Jones
Editing by Marc Jones and David Goodman
)