Hedge fund manager new to Bank of England MPC severs links with old firm

Gertjan Vlieghe announces he will be bought out of Brevan Howard and maintains there was no conflict of interest despite others' concerns

A hedge fund manager appointed to the Bank of England's monetary policy committee (MPC) has succumbed to pressure about potential conflicts of interest by severing financial links with his former employer.

The appointment of Gertjan Vlieghe, a former partner and senior economist at hedge fund Brevan Howard, to the rate-setting committee was announced on Tuesday but prompted concern about his remaining ties to the investment firm. He was to have retained a financial interest in Brevan Howard, which is a partnership. This would have allowed him to receive long-term incentive payments based on the hedge fund's size, according to a report by Reuters.