The head of the Bermuda Monetary Authority (BMA) has been appointed as the Republic's new financial regulator by the Central Bank, in a new move that is expected to herald a shake-up in the regulation of Ireland's financial system.

Englishman Matthew Elderfield is set to take up his position as the new head of financial supervision in January.

Mr Elderfield will be responsible for all regulatory activities at the Republic's Central Bank.

He replaces Mary O'Dea who has been acting CEO of the financial regulator since February of this year when Pat Neary stood down.

The appointment has been welcomed by Finance Minister Brian Lenihan, who earlier this year said the Government intends bringing forward legislation to establish a single fully integrated regulatory institution within the Central Bank.

Mr Elderfield has been the chief executive of the Bermuda Monetary Authority since July 2007.

Minister Lenihan said: "The appointment of Mr Elderfield, particularly given his extensive international regulatory experience, is a key step in the restructuring of financial services regulation in Ireland."