John Griffith-Jones, chairman of the Financial Conduct Authority and the Payment Systems Regulator (PSR), has confirmed that he will leave both organisations at the end of his five year term of office.

He will stand down from both on 31 March 2018. In line with most chairmen of the the main financial watchdog, he will serve no more than one term, allowing a new chairman to take over. No announcement has yet been made about his replacement but a search is under way.

He said: “I committed to a five year fixed term to chair the FCA and, in so doing, to help ensure that conduct regulation became a respected part of the UK financial landscape. It has been, and continues to be, a great privilege to be responsible for the work of both the FCA and the PSR.  I like to believe that I will leave both in good shape to regulate well in the future.”

Mr Griffith-Jones was appointed as the first FCA chairman with effect from 1 April 2013. He became chairman of the PSR when it was established in April 2014. The FCA says his term of office at both organisations expires on 31 March 2018.

Chancellor Philip Hammond MP said: “I want to thank John Griffith-Jones for his work as chairman of both the Financial Conduct Authority and the Payment Systems Regulator.

“Both undertake a vital role in ensuring that the UK financial markets work well and that the interests of consumers and users of those markets are protected. John Griffith-Jones has provided strong leadership to both Boards during his tenure, helping to establish them as key parts of the UK financial regulatory system.”

HM Treasury will now commence the process for recruiting a new chairman for the FCA. The chairman of the Financial Conduct Authority is appointed by HM Treasury and the chairman of the Payment Systems Regulator is appointed by the FCA with the approval of HM Treasury.