Norges Bank stands by Tangen amid fresh criticism

Norges Bank governor Øystein Olsen has again defended the central bank’s decision to appoint Nikolai Tangen to head Norway’s sovereign wealth fund, as the decision came in for fresh criticism today (August 10).

In hearings in Norway’s parliament, Julie Brodtkorb, head of Norges Bank’s supervisory board, said Tangen’s appointment appeared to breach regulations. A key issue is whether Tangen’s role as founder of AKO Capital might create conflicts of interest with his new role, even though he has stepped down from his positions at the company and handed over his assets to a separate entity to manage.

Olsen, who testified after Brodtkorb, told the committee that Norges Bank had taken steps to “ensure the requisite distance” between Tangen, his personal wealth and the management of AKO.

“Nicolai Tangen has satisfied the board’s requirements regarding the restructuring of his financial engagements,” Olsen argued.

A further issue emerged over the issue of whether Tangen held assets in tax havens. But Olsen said the matter had been investigated and none of Tangen’s dealings were found to be “at variance” with the central bank’s ethical guidelines.

Nevertheless, Olsen seemed to acknowledge that the process could have been handled better. “We acknowledge that the process surrounding Tangen’s appointment has raised questions that needed to be clarified – and there have been some learning points along the way,” he said.

Brodtkorb appeared to feel the issues with Tangen’s appointment had not been fully dealt with. “There’s been a breach of guidelines, regulations and laws,” she told the committee, Reuters reports. “While we agree that measures have been taken to reduce the potential for conflicts of interest, such risks have not been eliminated.”

Olsen argued that it would be impossible to fully eliminate all conflicts of interest, but with Tangen’s contract in place, he said the matter had been resolved “for all practical purposes”.