According to the FT, McDermott has been named as head of corporate, public and regulatory affairs and will take up the role from 20 March.
She will be tasked with handling global public affairs, sustainability, and communications operations at the Asian-focused lender, which earlier this month announced a 15-year deal with Allianz to sell general insurance products across five markets in Asia.
The new partnership will cover Hong Kong, Singapore, Malaysia, Indonesia and China and will be implemented during 2017.
“The opportunity to join the bank at this critical point in its history, and in a time of global change, is one which was too good to miss,” McDermott said.
McDermott was appointed acting chief executive of the FCA in September 2015 after her predecessor Martin Wheatley was effectively fired by the then chancellor of the exchequer George Osborne.
She ruled herself out of taking the role on a permanent basis at the start of 2016, having been among those considered to fill the regulator’s top role.
Andrew Bailey succeeded her, after McDermott left the regulator last July.
McDermott spent most of her career as head of enforcement at the watchdog.
In her new role, she will report to Standard Chartered chief executive Bill Winters and will join the firm’s global management team.
Hong Kong hires
McDermott’s appointment comes a week after Standard Chartered announced a number of high-profile hires to its Hong Kong unit.
Chief executive of StanChart Hong Kong, May Tan, confirmed she will retire after 32 years in the finance industry.
Her replacement has been named as Mary Huen, who has been serving as the regional head of retail banking for Greater China and North Asia. Her role will be filled by Samir Subberwal, currently head of retail banking in Hong Kong.
Subberwal will be succeeded by Vicky Kong, regional head of wealth management for Greater China and North Asia. Her replacement will be announced in due course.
John Tan, currently chief executive of StanChart Taiwan, will become head of financial markets for Greater China and North Asia, plus Hong Kong.
All appointments are effective from 1 March 2017.