The chartered accountant, who led Virgin Money between 2007 and its sale to CYBG in 2018, is expected to succeed Sir Jan du Plessis as chair of the regulator following scrutiny by the Business and Trade Select Committee.

Gadhia began her career at Ernst & Young before helping found Virgin Direct in 1995. She later launched the Virgin One account, which was acquired by Royal Bank of Scotland in 2001, spending five years at RBS before returning to Virgin Money as chief executive in 2007. She is now founder and executive chair of fintech Snoop.

Her appointment comes as the FRC continues to reshape its regulatory approach. In its annual report, published this week, the watchdog highlighted reforms including a revised UK Stewardship Code, a new audit supervision model, updated enforcement procedures and guidance on the use of artificial intelligence in audit, while reporting a £3.25 million budget surplus for 2025/26.

Business secretary Peter Kyle said: “Dame Jayne-Anne Gadhia has a proven track record in driving growth and championing high standards in the organisations she leads, along with exceptional experience in financial services.

“She is perfectly placed to lead the FRC at this important time and I look forward to working with her to boost confidence in British businesses.”

Gadhia said: “I am honoured to be appointed chair of the FRC at such an important time for the organisation and for the UK economy. Strong corporate governance, high-quality reporting and trusted audit are not abstract regulatory goals — they are the foundations on which businesses grow, investors commit capital and public confidence is maintained.

“The FRC has done impressive work in recent years to raise standards and modernise how it regulates and I look forward to working with Richard and the whole team to build on that progress.”

The Business and Trade Select Committee is due to hold a pre-appointment hearing on Tuesday before making a recommendation to the Business Secretary, who will make the final appointment.