Sir Christopher Hogg, former Retuers and GlaxoSmithKline chairman, is to take over as the head of the UK's accounting watchdog from the beginning of next year.

On 1 January 2006 Sir Christopher will replace Sir Bryan Nicholson as chairman of the Financial Reporting Council. Sir Bryan has chaired the body since 2001, steering it through a major transformation in 2004, when it took on the responsibilities of the now-defunct Accountancy Foundation and received enhanced powers.

Sir Christopher's role attracts a remuneration package of £130,000 for three days' work a week. The appointment is for three years, but this can be extended for a further three should it be required.

'I welcome Sir Christopher's appointment as the new Chair of the FRC,' said trade and industry secretary Alan Johnson. 'He has a strong business background at senior levels, both domestically and internationally and is highly respected in the business community.'

'I would like to pay tribute to the excellent work Sir Bryan has done at the FRC,' he added. 'He led the organisation very successfully through a period of major change when it took on significant responsibilities for improving confidence in corporate reporting.'

In accepting the position, Sir Christopher said that the UK has an 'admirable and fully developed corporate reporting regime' but that there are also 'major new challenges, such as international financial reporting standards and international auditing standards', to deal with.

Alongside his positions as chairman at Reuters and GSK – leaving both last year - Sir Christopher has also served as chairman and chief executive of Courtaulds and chairman of the National Theatre, as well as being a member of the JP Morgan International council.