The Bank of England has named Sam Woods as deputy governor and chief executive of the Prudential Regulation Authority (PRA).
Woods takes over from Andrew Bailey, the new head of the Financial Conduct Authority, on 1 July.
Bailey was unable to leave his PRA position until a replacement was found. Tracey McDermott has been acting FCA chief executive since Martin Wheatley's departure in July last year.
The Bank said Woods would continue in his current role as executive director of insurance until the end of June.
As the Bank's deputy governor for prudential regulation, Woods will have specific responsibility for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.
Bank of England governor Mark Carney, said: "Sam is a dedicated public servant, a forward-looking policymaker and a natural leader. His broad experience and personal qualities will be vital in building on Andrew Bailey's extraordinary contributions since the creation of the PRA in 2013.
"My colleagues and I look forward to working closely with Sam as the Bank of England continues its important mission of promoting the good of the people of the United Kingdom by maintaining monetary and financial stability."
Woods added: "The PRA has made a strong start as a prudential regulator under Andrew Bailey's leadership and I look forward to continuing our work with the aim of promoting safety and soundness, protection of policyholders and financial stability more broadly."
Chancellor George Osborne commented: "Sam has been one of the architects of the government's crucial reforms to financial regulation - playing a key role in the work of the Independent Commission on Banking.
"I believe Sam is the best person to ensure that these vital reforms he helped design will be a success and to deliver a strong, secure and globally competitive regime for all financial services.
"I would like to thank Andrew Bailey for his excellent years of service at the Bank. He is now moving onto a new role at the FCA and leaves the PRA in an excellent state. In Sam Woods, he has a worthy successor."
Woods will sit on the Bank's court of directors, the financial policy committee, the board of the Prudential Regulation Authority (which will become the Prudential Regulation Committee following Royal Assent of the Bank of England Bill) and the board of the Financial Conduct Authority.
'Safe pair of hands'
CMS financial services partner Simon Morris said: "With a background in both banking and insurance, Sam Woods has the credentials to convince a sceptical industry that he will maintain continuity as a safe pair of hands at a time when the PRA is folded into the Bank of England."
Association of British Insurers director general Huw Evans said: "Sam is an excellent choice to lead the organisation and will be able to rely on proven understanding of the insurance and long-term savings markets as he faces the challenges of the next five years.
"As both the Chancellor and governor noted, he is a highly committed public servant who has taken on tough challenges throughout his career to date, including the final implementation of Solvency II.
"He has a productive working relationship with the insurance and long-term savings industry which I look forward to him continuing as deputy governor."
