The City watchdog has raised concerns with the hire of KPMG's Oliver Tant to the position of chief finance officer at Legal & General.

Tant, who took up the position of head of client counsel at the firm after he lost out on the chairmanship role to Simon Collins in March last year, is understood to have now walked away from the process, after the Prudential Regulation Authority (PRA) indicated its concerns. He is also set to leave KPMG.

The PRA is tasked with overseeing management and governance of insurance firms. This includes ensuring that individuals appointed to senior management positions are competent to fill such roles.

The organisation therefore vets candidates by requiring firms to submit the names and details of career and experience of individuals it intends to hire. The firm is also expected to prove that the candidate has the requisite skills and experience for the job.

If the PRA informs the firm that it is minded to approve the candidate, then further information might still be required.

But the PRA might also indicate it is minded to reject the candidate - at which stage most firms withdraw the candidate from the process for fear of being seen to alarm the market with a hire which the regulator disapproved of.

Tant has been at KPMG since 1982. Prior to heading the firm's Client Council division, he was UK head of audit. Other roles he has held include being global chairman of Private Equity and UK head of travel, leisure and tourism. He has also previously been on the board on the firm.

The PRA said it would not comment on the matter since it does not comment on cases regarding individuals.