Tyrie: Overhaul MPC conduct code

Treasury select committee chairman Andrew Tyrie has written to the Bank of England to demand a review of its code of conduct for Monetary Policy Committee members.

In a letter to Bank governor Mark Carney last week, Tyrie says the appointment of Gertjan Vlieghe to the committee suggests the need for an overhaul. 

Vlieghe is a former partner and senior economist at Brevan Howard Asset Management and joined the MPC in late July. However, it later emerged that he would retain a share in the fund management group’s future earnings, raising questions about a possible conflict of interest with his role helping to set the Bank’s base rate.

Vlieghe later reached a deal to buy him out of his stake with Brevan Howard.

In the letter to Carney, Tyrie writes: “It is essential that those appointed to the MPC have no conflicts of interest, nor perception of them.

“A well-designed code of conduct, sensibly applied, should be capable of achieving this without diminishing the quality of applicants.”

A Bank spokeswoman confirmed that it had received Tyrie’s letter and would respond but declined to comment further.