The Financial Conduct Authority, the UK regulator, has appointed James Kelly, a former managing director at Goldman Sachs and UBS as an adviser in the wholesale banking and investment management division within supervision.

Kelly was a managing director in risk management products at UBS from 1993 to 2007 when he moved to Goldman Sachs as a managing director in derivatives cross product sales. He left Goldman Sachs in 2012 and is joining the regulator in a new part-time role according to a statement.

He will start immediately and report to Will Amos, director of the FCA’s wholesale banking and investment management division.

Clive Adamson, director of supervision at the FCA, said in a statement: “It’s vital that we continue to appoint individuals with sector specific expertise into the FCA, and James has that in spades. His knowledge of the market and strategic insight will be hugely valuable.”

An FCA spokesman said Kelly could be involved in the regulator’s current investigation into the rigging of foreign exchange and benchmark interest rates.

This week Martin Wheatley, the head of the FCA told a Parliamentary committee “The [FX] allegations are every bit as bad as they have been with Libor.”

In another banking hire, Rob Taylor, former chief executive of broker Kleinwort Benson, started at the FCA last month as head of wealth management and private banking in the supervision division.

Last year Wheatley called for greater transparency in how asset managers use dealing commissions to pay for services as the regulator started a consultation process with the industry.

A survey by consultancy TABB Group this week found that two thirds of European head traders expect the payment model to change so that management fees are used to pay for commissions.

The FCA is also studying transition management, which involves either restructuring a large portfolio of securities or switching a portfolio between asset managers. according to a spokesman.

Last month the regulator fined State Street UK, a unit of US custody bank, £22.9m for allegedly overcharging six clients, including large asset managers and pension funds, between June 2010 and September 2011.