The way forward for Nicolai Tangen as the following head of Norway’s $1tn oil fund was thrown into doubt as Norway’s political events united to insist he can not tackle the position until he eliminates conflicts of curiosity from his possession of a stake in a hedge fund.
After months of drama, all 9 events laid down two necessities for Mr Tangen to take over on September 1: that he not have any investments or holdings that create conflicts of curiosity that “weaken the belief and status” of Norway’s central financial institution, or that might weaken the oil fund’s work on tax and transparency.
The calls for elevate questions not nearly the way forward for Mr Tangen, but additionally Norway’s central financial institution governor Oystein Olsen, who introduced the appointment of the founding father of London-based hedge fund AKO Capital as the brand new head of the world’s largest sovereign wealth fund in March.
Mr Tangen was allowed by Mr Olsen to maintain a 43 per cent stake in AKO, which politicians throughout the spectrum in Norway have decried as resulting in a possible battle of curiosity. There has additionally been concern over many funds in AKO being primarily based within the Cayman Islands as Norway and the oil fund have labored onerous to minimise the usage of so-called tax havens.
Mr Olsen is assembly with centre-right finance minister Jan Tore Sanner for disaster talks on a day of excessive drama in Oslo that started when the federal government’s legal professionals advised Mr Sanner that he may instruct the central financial institution governor on what to do over the appointment of a brand new oil fund chief govt.
The storm across the appointment of Mr Tangen is the largest problem to the oil fund’s status in its 24-year historical past. It has raised issues concerning the independence of Norway’s central financial institution — which homes the fund and appoints its chief govt — in addition to potential political interference on this planet’s largest sovereign wealth fund.
Politicians from the left and proper of Norway’s political spectrum have argued that belief in each the fund and the central financial institution could be critically weakened if Mr Tangen’s conflicts of curiosity weren’t addressed.
“We can not have an oil fund chief govt who’s a strolling battle of curiosity,” mentioned Kari Elisabeth Kaski of the Socialist Left get together.
Mr Tangen declined to remark to the Monetary Instances on Friday night.