FSA general counsel Andrew Whittaker will be inviting firms to pitch for a place on the roster, with the tender process expected to take no longer than a few months.
The make-up of the new panel will be reviewed every three years, with preferred advisers set to receive the majority of the work originating from the body.
The FSA, which has an annual legal spend of £500,000, will expect its panel firms to advise on non-financial services work such as defending litigation and supporting in-house legal functions.
The process will be closely watched by top 10 City firm Ashurst, which has often advised the FSA in the past.
Whittaker said the move was prompted by a need for more advisers should Ashurst be unable to act due to conflicts.
The successful firms will join three counsel – Michael Brindle, Charles Flint and Ian Glick QCs, respectively of
Earlier this year the FSA launched its first criminal charges for insider trading against Christopher McQuoid, the former general counsel of Hertfordshire-based telecoms company TTP Communications. McQuoid was accused of insider trading ahead of an £103m offer made for TTP by Motorola in June 2006.