Godfrey has a short term contract beginning 27 May, and it is likely to run for "a couple of months".
He will be assisting the FCA with its policies regarding the asset management industry in particular.
Godfrey stepped away from his role as chief executive of the Investment Association last September following a dispute with some of the biggest asset management firms he represented. He had been attempting to push through reforms of the industry around issues such as fee transparency and firms taking a stewardship role at companies they own shares in.
Firms including M&G Investments and Schroders said they would not renew their IA memberships if the policies being pursued were not changed, making Godfrey’s position extremely difficult.
Last month the IA announced former AIFA director general Chris Cummings as Godfrey’s replacement, following an interim period during which Guy Sears stepped into the top job.