He has served on the panel, which represents the interests of financial practitioners, since August 2011 and will succeed Russell Collins who is retiring at the end of May.
Mr Garner currently works as head of the UK Bank and deputy chief executive of HSBC with responsibility for HSBC’s retail and commercial banking in the UK.
He has previously worked at first direct, M&S Money and Procter and Gamble and joined HSBC in 2004.
He also worked as a non-executive director of the Financial Ombudsman Service between February 2008 and February 2010.
Mr Garner said: “A safer and trusted financial services industry is vital. I am delighted to get the opportunity to play a role in shaping the regulatory decision process which could benefit consumers and regulated firms for a generation.”
FSA chairman Adair Turner said: “I am pleased Joe has agreed to take on this important role and would like to extend my thanks to Russell Collins for his time as chairman.”
The 12-person panel consists of Mr Garner, Graham Beale from Nationwide, Paul Geddes from Direct Line, Mark Harding from Barclays, Simon Hogan from Morgan Stanley, Garry Jones from NYSE Euronext, Guy Matthews from Sarasin Investment Funds, Helena Morrissey from Newton Investment Management, John Pollock from Legal & General, Malcolm Streatfield from Lighthouse Group, Paul Swann from ICE Clear Europe and Doug Webb from the London Stock Exchange Group.