This followed Finance Minister Pravin Gordhan's approval of the recommendation of the Financial Services Board (FSB) on Pillai's appointment.

In a statement, the ministry said Pillai would take on the position on April 1 2010 for three years.
Pillai currently serves as Financial Advisory and Intermediary Services (Fais) Ombud.

"He will take over from the acting PFA Dr Elmarie De la Rey, who served in this position for the past six months following the resignation of Ms Mamodupi Mohlala to take up the post of director general in the department of communications," the ministry said.

The board of the FSB has also appointed Noluntu Bam to succeed Pillai as Fais Ombud, effective from March 1 2010 for three years.

Bam had served as deputy Fais Ombud for the last six years.

Pillai became the country's first Fais Ombud in 2003.

"His dedication and commitment contributed significantly to building the office and upholding the objectives of consumer protection and the integrity of the financial services industry.

"He brings with him a sound understanding of approaches to dispute resolution," the ministry said.

- Sapa