Prime minister David Cameron has confirmed Ros Altmann is to be pensions minister, days after she told Money Marketing she had turned down the role.
Prior to the election Altmann said she would be minister responsible for consumer protection and education.
She said she did not want to be pensions minister because she thought she could have more influence in a broader role.
Altmann was due to conduct a broader review of “financial fairness” which would explore whether a charge cap should be applied to pension products, rights for older people in the mortgage market and extending Pension Wise beyond at-retirement guidance.
She has also backed a complete ban on commission, which can still be paid for non-advised business, and criticised the dual charging structure of Government-backed auto-enrolment scheme Nest.
Altmann has also said the de minimis level for mandated advice when individuals sell an annuity on must not be lower than £30,000, the trigger for defined benefit transfers.
She defended herself against critics who said she could no longer claim to be independent, saying she would stand up to the Government when necessary.
She said: “I will do my absolute best to work on behalf of the ordinary silent majority of this country to improve financial fairness and education from within Government.
“The problem for someone like myself – and I’ve been criticised for accepting the role – is that I spent years as an independent outsider and I know what it’s like. I’ve achieved a lot but if you really want to make the biggest difference you have to be inside, not outside.”
LibDem Steve Webb lost his seat in the general election – he was pensions minister for the five years of the coalition government.