Chancellor Alistair Darling is set to appoint Lord Adair Turner as the new FSA chairman, succeeding Sir Callum McCarthy who steps down in September.
Reports over the weekend suggest Lord Turner is the Treasury's preferred candidate and is just days away accepting the part-time role.
Lord Turner is a former CBI director general and was once chairman of the Blair Government’s Pension Commission.
The main stumbling block appears to be Lord Turner’s wish to remain chairman of the Government's climate change committee, while taking on the three day a week FSA post.
It is understood the Government will allow Lord Turner to preside over both roles, at least until December.
Lord Turner's possible appointment comes after a difficult period for the regulator, which has come under attack following its handling of Northern Rock.
Sir McCarthy and FSA chief executive Hector Sants admitted the regulator made some mistakes in its handling of the beleaguered lender last year.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created