Mr Stockton currently works as group finance director at Institute of Financial Planning-sponsor Rathbone Brothers, a FTSE 250 wealth management firm.

Prior to this, Mr Stockton worked in the insurance sector.

Lord Turner, chairman of the FSA, said: “We are pleased that Paul has been appointed to the FSCS Board as non-executive director. He brings with him valuable experience which will greatly benefit the FSCS.”

David Hall, chairman of the FSCS, said: “It is with great pleasure that I welcome Paul to the Board of the FSCS. His wealth of experience in finance, financial services and consumer issues will be invaluable at a crucial time in the Scheme’s development.”

Mr Stockton joins current non-executive directors Mr Hall, Tony Ashford, Liz Barclay, Jayne Nickalls, Rosalind Reston, Max Taylor, Phillip Wallace and David Weymouth on the Board.

Executive directors are Mark Neale, Alex Kuczynski, Kate Bartlett and Rommel Pereira.

The FSCS is the statutory fund of last resort to customers of authorised financial services firms.

It aims to provide protection for private individuals and small business and can pay compensation if an authorised firm goes out of business or is insolvent.