PricewaterhouseCoopers (PwC) has hired the Financial Services Authority's (FSA's) former director of enforcement and financial crime, Margaret Cole, as its new UK general counsel.

Cole, who will join the accounting giant in the autumn after serving a period of gardening leave, will take over from Owen Jonathan when he retires from the professional services giant in December 2012.

In addition to serving as GC of PwC's UK network, Cole will also replace Jonathan on PwC's executive board.

Confirmation of Cole's move to PwC ends weeks of speculation after she announced her departure from the FSA last month after being overlooked for the top role at the Financial Conduct Authority – the body which will take over some of the FSA's responsibilities overseeing the financial markets.

The job instead went to Martin Wheatley, who will join the FSA in September from Hong Kong's Securities and Futures Commission.

Many had expected Cole to return to a lucrative career in private practice, where her experience transforming the FSA's enforcement capabilities and past stint in private practice as a partner in the London office of White & Case meant she would have been in great demand.

In 2011, PwC reported average profit per partner of £763,000, up from £759,000 the previous year.

Former Serious Fraud Office general counsel Vivian Robinson, who joined US firm McGuireWoods last year, said: "Margaret Cole has an impressive track record – she was an integral part of the FSA's crackdown on financial crime during her time as enforcement chief. She will do incredibly well in her new role at PwC, especially in the light of the recently implemented Legal Services Act."

One City legal recruiter said: "This is very interesting, as she could have gone to any law firm. She will be making perhaps half a million in this role but in private practice she would have earned at least a million. It may be an easier life, without the pressure of billing. It is a good job, there is no doubt about that."

PwC chairman and senior partner Ian Powell commented: "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."