Hector Sants, the head of Britain's Financial Services Authority (FSA) watchdog who was due to take up a new regulatory post once the FSA is disbanded in 2013, will step down from his post in June, the FSA said on Friday.
The FSA added that the Bank of England's Andrew Bailey would take over Sant's role in running the part of the FSA that will become Britain's future Prudential Regulatory Authority (PRA) body.
The FSA is to be replaced by two new regulatory bodies after it was blamed for not spotting major problems at banks, such as Royal Bank of Scotland
The Prudential Regulation Authority will look at firm-specific risks and will be housed within the Bank of England, while the separate Financial Conduct Authority will focus on consumer protection.
(Reporting by Sudip Kar-Gupta; Editing by Fiona Shaikh)