The former managing director of enforcement and financial crime at the FSA will become the general counsel of PwC UK.
Margaret Cole – who resigned from her position earlier this year – will also be a member of PwC’s UK executive board.
She will assume her role in December 2012 when Owen Jonathan retires from the firm.
PwC chairman and senior partner, Ian Powell, said: “The complexity of current and proposed legislation affecting PwC and our clients requires a general counsel with extensive experience, expertise and judgement.
“Margaret has demonstrated these qualities in her career to date in public and private practice, and at the most senior level at the heart of financial services regulation.
“Margaret will bring a new perspective to the firm and will make a significant contribution to our network.”
Former commercial lawyer Cole will be one of three women on the executive board.
She resigned from her position at the FSA after Martin Wheatley was named head of the Financial Conduct Authority.
Last year Cole’s department at the FSA handed out 11 convictions for insider dealing with fines totalling some £66m.
Speaking about her new role Cole said: “I’m looking forward to the opportunity to work with a great team of people in such a dynamic and complex international business environment at a key time in its development.”