Charles Randell is to step down as chair of the Financial Conduct Authority and Payment Systems Regulator after three years in the role.
Randell (pictured) was appointed chair in April 2018 and was due to hold the appointment for five years but plans to leave the role in Spring 2022.
Chancellor of the Exchequer Rishi Sunak has been asked by Randell to begin the process to appoint his successor.
In April, Gina and Alan Miller of the True & Fair Campaign called for the resignation of Randell over the compensation scheme of victims of financial loss, claiming the FCA had taken "anti-consumer and potentially unlawful steps".
Last year, Randell apologised for the FCA's role in the London Capital & Finance and Connaught fund scandals, saying the regulator was "profoundly sorry for the mistakes [it has] made".
On his departure, Randell said: "As the FCA prepares to implement its new wholesale, retail and data strategies under an established new executive, now is the right time for a new chair to carry on the close and continuous oversight of our transformation.
"During the pandemic, the FCA stood up for consumers and businesses, while the markets we oversee proved resilient, laying the foundations for record capital raising to support the recovery.
"The PSR has been working to ensure payment systems - the lifeblood of the economy - work well for all. Being chair of the FCA and PSR has been a great privilege."
Sunak added: "I want to thank Charles Randell for his work as chair of both the Financial Conduct Authority and the Payment Systems Regulator during this important period.
"Both organisations undertake a vital role in ensuring that the UK financial markets work well, protecting the interests of consumers, promoting effective competition, and enhancing the integrity of the UK financial system.
"Charles has led both boards during the UK's transition to our new position outside the EU, through the vital economic response to the Covid-19 pandemic and supporting the important transition following Nikhil Rathi's arrival as new CEO of the FCA."
The FCA has said Randell will not be moving to another position.