A Bank of England official has been confirmed as the head of Britain’s new prudential regulator.

Andrew Bailey, executive director of the central bank and managing director of the prudential business unit of the Financial Services Authority (FSA), has been approved by Queen to become deputy governor at the BoE responsible for prudential regulation and the chief executive officer of the new Prudential Regulation Authority (PRA), which is being created out of the split of the FSA into two separate organizations (one to oversee conduct and one to monitor prudential regulation).

He will take up the new role on April 1, for a five-year term. “We have a big job ahead to ensure the UK has a stable financial system made up of banks, insurers and investment firms able to support activity in the economy and the needs of the public. There have been important and painful lessons from the financial crisis and we must ensure that the UK has a successful system of financial regulation now and for the future,” said Bailey.

Announcing the appointment, the Chancellor of the Exchequer, George Osborne, noted, “Putting the Bank of England in charge of prudential regulation is at the heart of the government’s reforms to regulation of financial services. It will be a tough, forward-looking regulator, focused on the stability of banks, other deposit takers and insurers — and with a mandate to protect policyholders.”

Bailey joined the central bank in 1985 and has since worked in a number of areas, most recently as executive director for banking services. He also joined the FSA in April 2011 as deputy head of the prudential business unit, and became managing director in July 2012.