The FSA's insurance chief, John Tiner, has been widely tipped to take the city watchdog's top job after chairman Sir Howard Davies announced his resignation last night.
Tiner, the FSA managing director for insurance and investment firms, has been installed as the bookies second favourite and is seen as a strong candidate by observers.
The bookies favourite is currently Andrew Crockett, head of the Bank for International Settlements.
Meanwhile Gus O'Donnell, Treasury Permanent Secretary, has been made third favourite for the top job.
Current chairman, Sir Howard Davies, announced his resignation yesterday to become director of the London School of Economics.
Speculation about why he left the FSA is widespread, although many believe he was disappointed not to be chosen as the next Bank of England governor.
Also, the FSA has come under fire for it's handling of the Equitable Life saga and problems with split capital trusts.
Last month a Treasury Select Committee accused Davies of being "asleep on the job".
Davies said: "I am greatly looking forward to working with the staff and students of the LSE. Its reputation is second to none."
