The Financial Services Authority (FSA) has named Adair Turner as its new chairman.
He will replace Sir Callum McCarthy when he leaves the post in September.
Former director-general of the CBI, Lord Turner will begin a five-year term and observers believe that his first objective will be to restore the watchdog’s image.
The FSA was accused by MPs of not doing enough as the credit squeeze tightened and over its handling of beleaguered bank, Northern Rock. The Newcastle based firm was eventually nationalised. An internal FSA report admitted that some “painful lessons” had been learned from the affair.
Chancellor Alistair Darling said that his “wide-ranging expertise would be invaluable in driving forward the FSA’s objectives to maintain confidence in the financial system, protect consumers and reduce financial crime”.
Lord Turner is a director at several firms as well as head of the government’s committee on climate change. He also oversaw the government’s Pensions Commission between 2003 and 2006, and the Low Pay Commission between 2002 and 2006.
Lord Turner said he looked forward to his new role at the FSA “as it meets the challenges ahead”.