Peter Norris was portrayed by an actor in the film Rogue Trader, but in his new role as chairman of the Virgin Group the former Barings boss may have to do his own dramatics.

Sir Richard Branson has appointed Mr Norris, 54, to head the board of Virgin Group, the holding company that owns brands such as Virgin Atlantic and Virgin Rail.

Sir Richard is spending an increasing amount of time on charitable work with his foundation, Virgin Unite, while the Virgin empire continues to expand around the world. He has, therefore, decided that Virgin needs its first non-executive chairman to oversee the day-to-day management of a group with revenues of more than $10 billion (£6 billion) a year.

Given Sir Richard’s habit of dressing up in outrageous costumes and wigs to promote his various businesses, Mr Norris may need to get in touch with his inner thespian to fill the billionaire entrepreneur’s shoes properly.

Sir Richard stepped back from involvement in the management of Virgin two years ago. He now concentrates on strategy and publicity, leaving the running of the empire to Stephen Murphy, the chief executive, and a team of executives.

Mr Norris’s job will be to act as Sir Richard’s eyes and ears on the board and to assess the group’s performance dispassionately.

Sir Richard said: “Peter has worked with me and our senior management for many years and we have always found his advice invaluable. He is both a highly skilled banker and an experienced entrepreneur and that is a rare mix.”

The appointment of Mr Norris as chairman of one of the UK’s largest private groups confirms the rehabilitation of a career seriously tarnished by the collapse of Barings Bank in 1995. Mr Norris had been the head of Barings’ investment division when Nick Leeson’s derivatives trading resulted in losses of £827 million and the collapse of the bank. The events were retold in Rogue Trader, which starred Ewan McGregor as Mr Leeson and Simon Shepherd as Mr Norris.

Mr Norris was accused of hindering investigations into Mr Leeson’s accounting, which he denied, but the Department of Trade and Industry banned him from holding a directorship for four years. Mr Norris instead became a consultant and worked with clients such as John Brown Publishing, which produced Viz, the comic.

He met Sir Richard in 1997 and began to advise the Virgin Group on a series of acquisitions and disposals. His work with Virgin included the sale of Virgin Mobile to NTL, which created Virgin Media, and the sale of Trainline, a rail ticket business, to Exponent Private Equity. Most recently he worked on the Virgin Money proposal to buy Northern Rock.

Mr Norris merged his consultancy firm, New Boathouse Capital, with Quayle Munro, a merchant bank, and became its chief executive two years ago. He is stepping down from that role and will be replaced by Andrew Tuckey, the former deputy chairman of Barings and another to have survived a DTI ban.

Mr Norris said: “I have been working with Sir Richard, Stephen and the senior Virgin team for many years and have greatly enjoyed helping with the development of the group’s strategy. Virgin is a tremendous brand, with great potential to grow its portfolio around the world.”

Mr Norris began his career at Barings in 1976 and became the head of its corporate finance team in Singapore in 1987. He became chief executive of the investment banking group in 1994 — months before the bank’s collapse.

Analysis: David Robertson

Sir Richard Branson’s appointment of an experienced City banker as non-executive chairman of Virgin Group offers a none-too-subtle indication of where the entrepreneur’s empire is heading.

The Virgin Group has become a vehicle for dealmaking, trading on Sir Richard’s fame and his special brand to buy and sell assets. The City experience of Peter Norris, the new chairman, will be invaluable as the group steps up its corporate activity.

In the past year the Virgin Group has sold its stakes in Virgin Mobile USA and Virgin Mobile Canada, netting a profit of about $325 million.

However, 2010 is shaping up to be even busier with a number of major deals in the pipeline.

The biggest opportunity is in banking and Virgin Money has applied for a banking licence. Virgin will then look at buying its way on to the high street. Sir Richard and Mr Norris failed to buy Northern Rock two years ago but with Lloyds and RBS expected to sell assets, there are likely to be opportunities arising.

Virgin Atlantic, the airline, is eager to buy bmi if Lufthansa, the German flag carrier, decides to sell.

Mr Norris will also have to decide whether the markets have recovered sufficiently to launch an initial public offering for Virgin Active, the gyms network. The flotation could raise more than £1 billion.

In mobile phones, Virgin is looking to expand its operations in France, where it is the No 4 player, and in India. In addition, Virgin has bought a stake in the Manor Formula One team and Virgin-branded cars are expected on the grid next year.

Other longer-term plans include launching a chain of boutique hotels.