Hector Sants is being headhunted by the Tories for a top job at the Bank of England or the Treasury, according to reports.
The Conservatives are rumoured to be keen to recruit the outgoing chief executive of the FSA if they win at the General Election in May, despite his clashes with them over the future of the regulator, the Financial Times reports.
Sants, who announced yesterday he will leave the FSA in the summer, has been a vocal critic of Tory plans to give the regulator's supervisory role to the Bank of England, and create a new agency focused on consumer protection.
However a Tory aide told reporters this morning: "As far as George [Osborne] is concerned this is not the end of [Mr Sants'] public sector career."
Reports suggest the Treasury has instructed the FSA not to begin the search for Sants' successor until after the General Election, underlying the serious implications on the City regulator of a change in Government.
The Treasury's decision means there would be no chief executive in place to handle the integration of the FSA with the Bank of England under the Conservatives.
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds
Variable operating expenses