Andrew Bailey has been appointed as the new chief executive of the Financial Conduct Authority.
He will succeed Martin Wheatley, who left the regulator last year after being told by HM Treasury that his contract would not be renewed.
Mr Bailey will begin a five-year term when a new chief executive for the Prudential Regulation Authority is found.
Chancellor George Osborne said: “Andrew Bailey is the outstanding candidate to be the next chief executive of the FCA, and I am delighted that he has agreed to lead it.
“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.
“His appointment is an important next step in the establishment of the FCA as a strong regulator, independent of government and industry.”
Mr Wheatley, who famously said he would “shoot first” and ask questions later, left the FCA in September. He resigned after being told the Treasury would not be renewing his term on the FCA board, which was due to expire in March.
At the time the Treasury said “different leadership” would be required to build on the foundations Mr Wheatley built.
Since then the FCA has been led by Tracey McDermott, who ruled herself out of the running for the permanent position earlier this month.
John Griffith-Jones, chairman of the FCA, said that Mr Bailey 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.
He also thanked Ms McDermott for the excellent job she has been doing as the acting chief executive and for agreeing to remain in post until Mr Bailey starts.
Several people had been linked with the position, including the head of the Australian regulator Greg Medcraft, the chief executive of the Swiss regulator Mark Branson and former Ofcom boss Ed Richards.
