Jonathan Agnew 'closes in on Virgin Money role'

VIRGIN Money is close to announcing that a former chairman of Nationwide Building Society will be its new chairman.

It is understood that Jonathan Agnew is awaiting the approval of the Financial Services Authority to accept the role at Virgin Money, which employs nearly 100 staff at its Edinburgh headquarters. He would be expected to play a lead role in Virgin's attempts to acquire branch assets from Lloyds Banking Group. His appointment comes as insurer Aviva, owner of the Norwich Union brand, confirmed Australia and New Zealand Banking Group chief executive John McFarlane as its chairman-designate. He is a non-executive director at Royal Bank of Scotland,

Virgin Money, which is majority-owned by Sir Richard Branson, has been without a chairman since sector doyen Sir Brian Pitman died over a year ago. One of the first jobs for Agnew will be to study the information memorandum put out by Lloyds last week detailing the branches up for sale at the behest of the European Commission which wants to see a reduction in its market share in current accounts and mortgages through its rescue of HBOS.

Agnew, who is 70, is already chairman of Beazley, the Lloyd's of London insurer and fund manager Ashmore.

Aviva said McFarlane would join its board on 1 September and become deputy chairman on 1 January before taking over from current chairman Colin Sharman at the end of June 2012.

McFarlane will resign from the board of Royal Bank of Scotland by 31 March and will relocate from Australia to the UK.