Bermuda's top financial regulator Matthew Elderfield is to leave at the end of this year to take up a leading job with the Irish central bank, after Bermudian Jeremy Cox was appointed to replace him as chief executive officer of the Bermuda Monetary Authority.

Mr. Elderfield, who will become the Central Bank of Ireland's director of financial regulation, joined the BMA two-and-a-half years ago.

Since then he has led the regulator through a challenging period, negotiating the global financial crisis and driving forward efforts to strengthen regulations to achieve equivalence with major jurisdictions.

Mr. Cox, who will take over the top job on January 1, 2010, has been the Authority's deputy CEO for the past two years.

"I've had a great experience over the past two-and-a-half years," Mr. Elderfield told The Royal Gazette yesterday. "Bermuda will have a friend in Ireland."

"I've have a very supportive team and and I fully support Jeremy Cox's appointment."

Mr. Elderfield said he had taken the BMA job in 2007 on the understanding that there was a succession plan to put a Bermudian in the top job. He said he had supported that and apporached the BMA board about the timing of the succession on his second anniversary in the job in July this year. The board's decision allowed him to explore new opportunities, which led him to Ireland.

Darren Johnston, acting chairman of the BMA board said: "This appointment recognises Jeremy's already significant performance and service to the BMA, and also reflects the effectiveness of the Authority's succession planning."

As CEO, Mr. Cox will lead the strategic direction and operational developments at the Authority, as well as overseeing on going enhancements to Bermuda's regulatory framework for financial services.

Mr. Cox said: "I appreciate the opportunity to continue serving the Authority, and Bermuda, at this level. I would also like to add my thanks to Matthew for the energy and ideas he brought to the Authority; it's truly been a pleasure working with him.

"There are many challenges facing financial supervisors around the world, especially in the wake of the financial crisis, and the Authority has a pivotal role in supporting Bermuda's interests.

"I look forward to leading our efforts in that regard with the board and the committed staff at the BMA. Bermuda remains fully committed to applying effective regulations that are in line with international standards."

Mr. Johnston paid tribute to Mr. Elderfield's efforts.

"I would also like to acknowledge the outstanding contribution Matthew has made to the Authority's progress over the past two-and-a-half years," Mr. Johnston said.

"He has combined strategic vision with practical leadership to great effect. On behalf of the board and all the Authority's staff I extend our sincere thanks to Matthew for his service and wish him well in his new position."

Mr. Elderfield will face a different set of challenges in his new role overseeing financial institutions in an Irish economy that has been badly hit by the global economic crisis.

Earlier this year, the Irish government said it would bring forward legislation to establish an integrated regulatory institution within the central bank. This came after the near-collapse of Ireland's banking system.

Mr. Elderfield will work closely with Central Bank of Ireland Governor John Hurley and will oversee 400 supervisory staff. He said he was excited by the opportunity, which he described as a great challenge.

In Bermuda, Mr. Elderfield oversaw the stress testing of the Island's banking sector and the introduction of enhanced capital requirements to ensure the banks could withstand a severe economic downturn. That led to Butterfield Bank having to raise $200 million in an historic, Government-guaranteed preference share issue.

Mr. Elderfield was also quick to monitor the impact of the sub-prime mortgage crisis on the Island's insurance sector and helped to nurse the worst hit entities - the financial guaranty companies - through severe stress.

A bolstering of the insurance regulation framework and enhanced risk-based supervision have been other benefits of Mr. Elderfield's energetic and goals-based approach.