The Financial Authority (FSA) has appointed senior litigator Tracey McDermott as the permanent replacement for Margaret Cole as director of enforcement and financial crime.

Confirmation of McDermott's appointment comes after she took on the role on an interim basis this April in the wake of Cole's departure to join accounting giant PricewaterhouseCoopers as UK general counsel.

McDermott, who played a key role in the FSA's recent headline-making Libor investigation into Barclays, qualified as a solicitor in 1995 and worked at legacy Titmuss Sainer & Webb (now Dechert) in London. She subsequently joined the FSA in 2001 as an associate in its enforcement division.

Her appointment was confirmed in an internal email sent to staff this morning by Martin Wheatley – the chief executive designate of the Financial Conduct Authority (FCA), which will replace the FSA next year.

Commenting on her appointment, McDermott said: "This is a particularly exciting time to be part of the leadership of the FSA as we look towards the new regulatory landscape and I look forward to working with colleagues to help to shape the future direction of the FCA."

Cole's exit from the FSA came after she put herself forward for the role of head of the FCA, a post that was last year handed to Wheatley, the former chairman of the Hong Kong Securities and Futures Commission.

The FSA moved to its 'twin peaks' operating structure in April this year, with the formal split into the Prudential Regulation Authority and the FCA – which will see one arm focus on prudential regulation and the other on conduct – set to go live in 2013.