The Bank of England has named Andrew Bailey as the new head of the Financial Conduct Authority.
Bailey will be appointed once a successor is found for his current role as head of the Prudential Regulation Authority.
Bailey has been appointed for five years and will replace interim chief executive Tracey McDermott who ruled herself out of permanent leadership.
The last permanent FCA head Martin Wheatley departed in September after being told his contract would not be renewed by the Treasury.
Chancellor George Osborne said: “We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis,
Andrew is simply the most respected, most experienced and most qualified person in the world to do the job.
“The government is determined that the financial sector operates to the highest standards. Anyone who has dealt with Andrew knows he will be tough but fair, and understands the flaws and merits of the sector better than anyone.”
John Griffiths-Jones, chairman of the FCA, said Bailey has done an excellent job at the PRA in the past three years.
He added: “He brings unrivalled regulatory experience, a proven track record and an excellent reputation in the UK and internationally.
“Having been an FCA board member since 2013 he has been fully engaged with all the regulatory issues that we have faced in recent years and in setting our strategy for the future.”
The government has also announced the appointments of Ruth Kelly, Bradley Fried, Baroness Hogg, and Tom Wright as non-executive directors of the FCA.