Treasury Committee chairman Andrew Tyrie asks Bank of England to revise code of conduct
Treasury Select Committee chairman Andrew Tyrie has asked Bank of England governor Mark Carney to reexamine the rules governing the Bank’s monetary policy committee (MPC).
Tyrie wrote to Carney yesterday about the naming of Gertjan Vlieghe, a senior economist at the hedge fund Brevan Howard, to the MPC. He said Vlieghe’s appointment, and the “subsequent need to remove any perception of a conflict of interest”, indicated that “the Code of Conduct for MPC members would benefit from re-examination”.
When Carney announced Vlieghe’s appointment in July, the economist said he would keep his stake in a long-term incentive plan at Brevan Howard, which would have provided him with payments based on how much money was managed by the fund.
At the time, the Treasury said Vlieghe’s stake in Brevan Howard did not pose a conflict of interest.
But after critics – including Tyrie – raised a red flag, Vlieghe apparently changed his mind, saying earlier this month that he had reached an agreement to be bought out from his stake.