The Financial Services Authority is understood to be thrashing out an agreement with Cameron’s lawyers that would see him barred from taking senior jobs at banks, asset managers and other financial firms.
There is no suggestion Cameron has broken the law. But his potential punishment comes after a strenuous FSA investigation into the unit he ran at RBS, which collapsed into the arms of the taxpayer in 2008.
In its annual report last year, RBS said the watchdog was probing “conduct, systems and controls” at its investment banking operation. Cameron was a close ally of Sir Fred Goodwin, who has since rehabilitated himself at architectural firm RMJM.
The FSA would not comment.