Bank of England Executive Director Andrew Bailey is to become CEO of the UK’s new Prudential Regulatory Authority (PRA) from April 1.

Mr Bailey is the current MD of the Financial Services Authority (FSA), and will take up the role under a restructuring of UK financial regulation.

The FSA will be replaced by two organisations: the PRA, a subsidiary of the Bank of England, will regulate deposit-taking institutions, insurers and investment banks; the Financial Conduct Authority will monitor financial markets.

“I have worked closely with Andrew over the past 10 years and I know he is the right person to lead the PRA in the years ahead,” Bank of England Governor Mervyn King said.

Mr Bailey says he is “honoured to have been chosen for this role and excited to see the PRA taking shape”.