Three Verulam Buildings barrister David Quest has been appointed to join a public hearing into the 2008 collapse of HBOS, marking the first time the Parliamentary commission has sought legal counsel to question witnesses on the issue.

Quest is today (30 October) sitting with the Parliamentary Commission on Banking Standards – which is led by former cabinet secretary Lord Turnbull – to question three former HBOS chief executives: former head of group regulatory risk Paul Moore, former international chief executive Colin Matthew and former group risk director Jo Dawson.

The commission, set up in July this year in the wake of the Libor scandal, is in the process of examining banking and regulatory standards in the UK financial sector, with the HBOS collapse one of a number of issues to be looked at.

HBOS was acquired by Lloyds TSB in January 2009 for £12.2bn, with a number of claims surrounding mismanagement of the deal subsequently emerging. Lloyds Action Now – an association set up to aid shareholders recover alleged losses – is currently looking to take legal action against the bank.

One top-tier silk commented: "I think it's critical to have legal counsel involved in these kind of inquiries because they are the only ones without an agenda. Parliamentarians and journalists don't have a clue about asking fair questions because they have an end goal in mind.

"Barristers have to be very careful about how they frame questions because that is what they do, day in and day out, and when you have an inquiry like this you need to have someone that is external to the process because it is the only way you can ensure witnesses are given a fair hearing."

Quest, who was called to the Bar in 1993, specialises in banking, finance and commercial fraud disputes. He is currently advising on the long-running $10bn (£6.2bn) fraud litigation between Saudi Arabian investment companies Saad Group and Ahmad Hamad Al Gosaibi & Brothers, while he was also junior counsel in the high-profile Prince Jefri v KPMG case.

The Financial Services Authority (FSA) has been carrying out its own investigation of the HBOS collapse since summer 2011, with a report on its findings set to be published in the coming months.

The news comes after former HBOS executive Peter Cummings was fined £500,000 last month by the FSA and banned for life from working in the City following his role in the bank's collapse. Stephenson Harwood advised Cummings led by litigation partner Tony Woodcock.

Click here to watch live coverage of the Parliamentary Commission on Banking Standards.