Marshall Bailey, who has worked in financial services for over two decades, succeeds Lawrence Churchill who has stepped down after six years in the role, during which time £1.8bn has been paid out by the FSCS in compensation.

The appointment was made by the FCA board and the Prudential Regulation Committee with the approval of HM Treasury.

Mr Bailey, who takes over on 1 April, has held senior positions at RBC Capital Markets and State Street Bank & Trust. He has worked on issues involving financial reform and conduct, most recently on the board of UKFI Ltd and as a member of the Market Practitioners’ Group for the FX Global Code of Conduct.

In addition to UKFI, Mr Bailey is currently a non-executive director at Chubb European Group and CIBC World Markets in the UK, and on the volunteer board of the CFA Society of the UK.

Mr Bailey said: “The FSCS is a critical component of the UK’s regulatory infrastructure, and vital to the trust we place in our financial system.

“The work previously done by Lawrence and the FSCS Board has been excellent, and I thank them for the work they have done to provide a resilient platform through a difficult period. Mark Neale and the executive team are deeply dedicated to ensuring that this continues, and that consumers, especially vulnerable ones, are protected.”

Christopher Woolard, FCA executive director of strategy and competition, who chaired the selection panel, said: “We have conducted a thorough recruitment process to identify the most suitable person to become the next Chair of the FSCS. Marshall Bailey was selected from a strong field of potential candidates.”

Mr Churchill, FSCS chair, said: “I have been proud to serve as chair of the FSCS over the last six years, during which time we have paid over £1.8bn in compensation to customers who have lost out and recovered £13.2bn from the estates of failed firms including those who failed during the financial crisis and subsequently. This includes the Icelandic banks and Bradford & Bingley.