Jacob Rees-Mogg’s business partner gets ministerial role

A city tycoon who founded an investment fund with Jacob Rees-Mogg has been handed a peerage and appointed as a minister.

Dominic Johnson set up Somerset Capital Management with the Business Secretary in 2007, and has since become an influential figure within the Conservative Party.

He currently serves as a non-executive director at the Department for International Trade (DIT) and has donated more than £250,000 to the party.

His appointment as a minister will come as a surprise to many following rumours that it would be handed to Sir Nigel Wilson, the chief executive of Legal and General.

The Times reported that Sir Nigel has declined the role, which is split between DIT and the Cabinet Office.

Fund house ‘up for sale’

It has also been reported that Somerset Capital Management is now up for sale.

Mr Rees-Mogg retains a significant stake in the company, but stopped receiving wages in 2019.

The firm is focused on emerging markets, investing in assets from China, Korea, India and Mexico.

Its website said that the company has “48 members of staff including an investment team of over 22 investment managers and analysts based in London, Singapore and Shanghai”.

Mr Johnson remains the chief executive of the company, succeeding Mr Rees-Mogg when he became an MP in 2010.

He will be appointed to the House of Lords to allow him to serve as a minister.

Mr Johnson and Mr Rees-Mogg were previously colleagues at a different investment firm, Lloyd George Management, and based in Hong Kong.

The financier is a former vice-chairman of the Conservative Party and was given a CBE for “political service”.

Tories accused of ‘cronyism’

Nick Thomas-Symonds, the shadow international trade secretary, criticised the appointment.

“It beggars belief that the Conservatives have appointed an unelected asset-fund manager to the Government – who just happens to be a crony party donor,” he said.

“As millions of working people face agonising choices about what essentials they can afford, Liz Truss – once again – shows she is not on their side.”

Ministers hope that Mr Johnson’s appointment will give asset management firms confidence in the Government’s direction, following days of anguish over the mini-Budget.

The row came after weeks of speculation about who will be installed in the House of Lords by Boris Johnson in his resignation honours list.

Names that have been mooted include Nadine Dorries, the former culture secretary, and Mr Johnson’s own father Stanley.

Lord Johnson of Marylebone, his younger brother, has already been appointed a life peer.

A spokesman for Somerset Capital Management said: "In respect to Dominic Johnson’s new role, we have key person succession plans in all areas of the business, so were well prepared for Robert Diggle to become CEO.

"As two founders are no longer involved in the day-to-day running of Somerset, we are looking at re-organising our capital structure to allow an ownership that is focused on incentivising the next generation of talent in the business."