Throughout the last five years, he has been praised in some quarters for steering the regulator through a period of immense financial uncertainty, while criticised in others for failing to see the crash coming, or to give out harsh enough penalties in its wake.
Two years ago the chancellor him to stay on to help lay the ground for the new regulatory regime to succeed the FSA, which comes into effect early next year.
Also rewarded in the New Year honours list is Mridul Hedge, the former director of financial stability at the Treasury and Sir Alan Budd, a civil servant brought out of retirement by Osborne to set up the Office for Budgetary Responsibility.
Those receiving CBEs include Nicholas Ferguson, the BSkyB chairman, for philanthropy and services to education. Peter Marks, chief executive of the Co-operative Group, Tony Pidgley, chairman of housebuilder Berkeley Group, and Martha Lane Fox, co-founder of Lastminute.com, are all honoured.
Michael Terrett, the chief operating officer at Rolls-Royce, has also been awarded a CBE, and the lord mayor of London, David Wootton, a former corporate lawyer, is to receive a knighthood.