Former FSA chief executive John Tiner has joined New Star as a non-executive director.
Tiner left the FSA last summer on six months gardening leave with a £325,000 payout.
New Star chairman John Duffield and Tiner worked together as part of industry efforts to find a solution to the split-cap investment trust debacle in 2004.
Tiner headed the FSA’s investigation while Duffield led the industry in negotiations with investors, who finally received £194m in compensation.
Before becoming FSA chief executive in September 2003, Tiner held the post of managing director of consumer, insurance and investment business since 2001.
He has recently been chosen by the Conservatives to work on their review of regulation.
Informed Choice managing director Martin Bamford says: “He is someone in the right position to add value to the firm. He will also offer great insight on the changing retail distribution market from the FSA’s own standpoint.”
A moneymarketing.co.uk online poll shows that only 31 per cent of advisers believe New Star is right to appoint Tiner.