FCA chairman John Griffith-Jones  has resigned from the watchdog. 

Griffith-Jones (pictured) will step back when his current five-year term expires at the end of March 2018. He will relinquish his chairmanship of the Payment Systems Regulator (PSR) at the same time. 

The former KPMG boss had faced calls to resign earlier this year follwing a probe into a £245 million fraud at HBOS, which had at the time been audited by KPMG. 

'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,' Griffiths-Jones said in a statement. 

'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.'

Chancellor Philip Hammond added:  '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.”