Money

Andrew Mitchell takes paid position at Arch


Andrew Mitchell, the former UK Cabinet minister, has become the latest politician to accept a paid position with an investment manager.

His £15,500-a-year job as an adviser to Arch Emerging Markets Partners of London brings the total paid by asset managers to MPs for advice and briefings to more than £250,000 in the past year.

The Conservative MP’s new role has triggered criticism from consumer and investor rights advocates because Mr Mitchell, a former secretary of state for international development, has the potential to receive commission for introducing business to Arch.

“I would urge politicians to think very carefully about the message they send to the public,” said Mick McAteer, co-director of the Financial Inclusion Centre, a not-for-profit think-tank.

“Care needs to be taken not to create the impression that politicians see politics as a stepping stone to lucrative roles in the City rather than as a public service.”

Mr Mitchell’s reported income already totals £215,000, before taking Arch into account.

He receives £79,468 as an MP; £12,000 a year as an adviser to Investec bank; £36,000 a year plus a £4,000 bonus as an adviser to Montrose Associates, a consultancy; £30,000 a year as a consultant for EY, the Big Four accountancy firm, and £30,000 a year as an adviser to UK Global Health Care.

He has also received a one-off £24,000 fee for providing advice to Globalvoice, a Norwegian tech company. His role with UK Global Health Care was suspended from March 31.

Mr Mitchell, a former chief whip, told FTfm that he had “over-disclosed” his entry in the register of MPs’ financial interests and that there was no formal agreement in place with Arch to recruit clients.

“The strategic advice I give draws on my experience as a banker and work in international development,” he said. “But my constituents always come first.”

Mr Mitchell worked for Lazard in investment banking before becoming an MP and said it was this experience that made him a good fit for the Arch role.

In government, Mr Mitchell served as international development secretary between 2010 and 2012, a role that involved administering overseas aid and visiting developing countries. He had been shadow international development secretary between 2005 and 2010.

Arch is a private equity group that specialises in investing in Africa. The company did not respond to queries about the nature of Mr Mitchell’s involvement in introducing business.

The group gave this statement: “Arch Emerging Markets Partners has appointed Andrew Mitchell as an adviser to the firm’s Africa Renewable Power Fund. As a senior adviser to the fund, Mr Mitchell will bring his experience of emerging markets from a long career in the City and a deep understanding of Africa from his acknowledged work in international development.”

This month, FTfm revealed that UK politicians had received at least £236,000 for speeches and advice from investment groups.

These included Boris Johnson, the former foreign secretary and probable Conservative leadership contender, who received £94,507 from GoldenTree Asset Management, a New York hedge fund manager, for a speech in November.

Other MPs who have received payments for advising investment companies include: Damian Green, who was paid £7,000 for two briefings at Janus Henderson; Ed Davey, who is paid £18,000 a year as an advisory board member of Next Energy Capital, a solar power investment manager; James Duddridge, who received £15,000 for advice given to TLG Capital Investments, a private equity firm focused on sub-Saharan Africa; Michael Fallon, who is paid £31,500 a year as an advisory board member of Investcorp; John Redwood, who is paid £5,000 a year as an advisory board member for Epic Private Equity; and Henry Bellingham, who is paid £30,000 a year as a senior adviser to J Stern & Co, a private investment office.



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