Tracey McDermott will not be the new chief executive of the FCA, the regulator has this afternoon confirmed.

George Osborne told BBC Radio this morning that she had opted against taking up the role full time and now the FCA has released a statement confirming this.

She has been acting CEO since Martin Wheatley left last year.

The FCA statement said: “The Financial Conduct Authority confirms that Acting Chief Executive Tracey McDermott decided in early December to withdraw from the process to appoint the permanent Chief Executive of the FCA.

“The Treasury-led recruitment process is ongoing and Tracey will continue as Acting Chief Executive until a permanent replacement is in post.”

Ms McDermott said: “I have been at the FSA/FCA for 15 years and I remain extremely committed to, and passionate about, the important work we do. It has been, and remains, a privilege to lead this organisation.

“However, going through the recruitment process has made me reflect on what I want to do with the rest of my career. As a result I have decided that this is not the right job for me at this stage of my career. This was a decision taken after many months of careful thought and was not one that I took lightly. ”

FCA Chairman John Griffith-Jones said: “Tracey’s stewardship of the FCA as Acting Chief Executive has served to build on an impressive reputation created during her time leading various divisions across the FCA.

“Over the last few months I have enjoyed working closely with Tracey and have appreciated both her advice and leadership of the organisation. I understand and respect the decision Tracey has made.

“The Board I and will continue to work together with her until the new Chief Executive is in post.”