MPs are expected to decide today who will take over the influential role of chairman of the Treasury Select Committee, prompting transparency campaigners to highlight the need for completely independent oversight of the financial services sector.
Jacob Rees-Mogg, founding partner of Somerset Capital Management, who has been a TSC member since 2015, has faced questions over potential conflicts of interest arising from his role with the investment manager, at a time when the asset management industry is under intense scrutiny by the FCA.
Rees-Mogg declares income of just over £14,000 per month for 35 hours work for Somerset Capital Management. Its £1.46bn MI Somerset Emerging Markets Dividend Growth has an annual management charge of 1 per cent and an OCF of 1.18 per cent, according to Trustnet. It is third quartile over one year and second quartile over three years.
Other contenders are former transport minister Stephen Hammond, who has earned £22,500 since January 2016 for work as a political consultant for the Confederation of Passenger Transport.
Former education secretary Nicky Morgan has earned £9,050 from speaking engagements.
Former cabinet office under secretary of state John Penrose has no declared earnings outside of his parliamentary duties, as do two other candidates, MPs Richard Bacon and Charlie Elphicke.
The result of the secret ballot of MPs to select the new TSC chair could be announced this afternoon.
ShareAction chief executive Catherine Howarth says: “The FCA identified real issues within the asset management industry in its recent report, not least around the need for improved independent oversight. The Select Committee must be, and must be seen to be, fearlessly impartial in its important oversight role.”