The U.K. Treasury instructed Royal Bank of Scotland Group PLC
The Treasury is seeking to avoid the potential appearance of a conflict of interest, given Holbourn's previous work at UKFI, the body set up to manage Britain's stake in RBS and Lloyds Banking Group PLC, sources told Sky News.
Holbourn is believed to have been recused from any matters directly relating to the government's stake in RBS for several weeks before leaving UKFI, which is now integrated into UK Government Investments, according to the May 25 report.
Talks between RBS and Holbourn were reported by Sky News earlier in May. Holbourn, who joined UKFI in 2013 as head of capital markets, will succeed Richard Kibble at RBS.
