The Irish Financial Services Regulatory Authority has appointed a former central banker as chief executive.

Patrick Neary, who is currently the financial regulator's prudential director, will take up the position of chief executive in February, when the present chief executive, Liam O'Reilly, retires.

As prudential director of the financial regulator since its establishment in May 2003, Mr Neary was head of the division that regulates the solvency requirements imposed on credit institutions and other regulated firms. His responsibilities included the protection of consumers' deposits, funds and policies.

Mr Neary was previously head of securities and exchanges supervision and deputy head of banking supervision in the Central Bank, where he began his career in 1971. He is a fellow of the Chartered Association of Certified Accountants (FCCA).

Announcing the appointment, Brian Patterson, chairman of the financial regulator, said Mr Neary had played a central role in the shape and direction of the financial regulator since its establishment. "Pat is ideally suited to take the financial regulator through the next phase of its development," Mr Patterson said.

Mr Neary was the unanimous choice of the selection panel, which was made up of non-executive members of the authority and an international regulatory expert from Finland. Other contenders for the position included the financial regulator's consumer director, Mary O'Dea.

Mr Neary's appointment was welcomed by Financial Services Ireland, a trade association for the financial services sector affiliated to the Irish Business Employers Confederation (Ibec), which said tackling the cost of regulation should be top of Mr Neary's agenda.