The UK head of KPMG chosen to be chairman of new financial watchdog

John Griffith-Jones will be responsible for supervising retail and wholesale markets from early next year.

The FCA, along with the Prudential Regulation Authority, are two new supervisors being created to replace the Financial Services Authority, which is being scrapped in wide-ranging reforms.

Mark Hoban, Financial Secretary to the Treasury, said: “It will be a key role in the successful delivery of the Government’s plan for a new regulatory structure in the UK.

“He understands the challenges facing the financial services sector and this, together with his experience in both chairman and CEO roles, will be very valuable as we move towards the creation of the FCA.”

Mr Griffith-Jones spent four years as chief executive of KPMG in the UK and in 2006 became chairman and senior partner.

He will join the FSA board in September as a non-executive director and deputy chair and will work with Martin Wheatley, CEO designate of the FCA.

Mr Griffith-Jones will become non-executive chair of the FCA once the FSA, under its current chairman Adair Turner, has been scrapped in early 2013.

Lord Turner said: “I am delighted to welcome John to the FSA board and as the future chair of the FCA.

“His judgment and independence of mind will be of great value to the FCA as it builds on the developments the FSA has made in respect of conduct regulation.”

Mr Griffith-Jones said: “Having worked in the financial world all my professional career, I know how important it is that consumers, investors and businesses have trust in the integrity of the UK’s financial services industry and markets.

“I see the future role of the FCA as key to rebuilding that trust, in particular through its increased focus on consumer protection and choice.”

Mr Griffith-Jones was educated at Eton and served in the Royal Green Jacket infantry regiment before joining KPMG in 1975.