Turner will have to face the Committee before he officially takes up the position in September.
The process was established to increase the Parliamentary scrutiny of public appointments for certain positions.
Turner’s appointment confirmed broad industry speculation that he would take on the role as chairman of the FSA after current chairman Sir Callum McCarthy steps down.
The appointment is for a term of five years.
Chancellor Alistair Darling says: “I am delighted to appoint Adair Turner as Chairman of the FSA. His wide-ranging expertise will be invaluable in driving forward the FSA’s objectives to maintain confidence in the financial system, promote public understanding of it, protect consumers and reduce financial crime. I look forward to working with him. I would also like to take this opportunity to thank Sir Callum McCarthy for his dedication and contribution over the past 5 years.”
The Treasury says that McCarthy has provided the FSA with leadership during this period, particularly during the severe pressures in financial markets since last August, continuing the transformation of an organisation and the development of a regulatory system, which is recognised internationally as world-leading.
Turner is currently chair of the new Shadow Climate Change Committee. He will remain as chair to provide the Committee’s formal advice to the Government on the first three carbon budgets and the 2050 target in December, and will step down from the role in the New Year.
Turner adds: “I am delighted to be taking over from Callum McCarthy at the FSA, and look forward to leading the Authority as it meets the challenges ahead.”
Association of British Insurers director general Stephen Haddrill says: “Lord Turner’s appointment is an outstanding one for the FSA and will be well received across the insurance industry. His work on pension reform shows he has an excellent grasp of the issues involved, not least the vital need to keep personal accounts simple and out of the regulatory advice net. I look forward to working with him closely in the future and continuing to build the strong relationship the insurance industry has with the FSA.”