New Bank of England policymaker says to fully sever hedge fund links

LONDON, July 31 (Reuters) - New Bank of England policymaker Gertjan Vlieghe said on Friday that he would sever all financial links with his previous employer, hedge fund Brevan Howard, to avoid any accusations of a conflict of interest.

Vlieghe had previously intended to remain part of a long-term incentive plan which would have provided payments based on assets under management at Brevan Howard, whose traders bet on interest rate moves.

Britain's finance ministry said this did not pose a conflict of interest. But on Friday Vlieghe said he had reached an arrangement to be bought out of his stake.

"As of August 31st I will have severed all financial and other ties with Brevan Howard. I have taken this step to avoid any mistaken impression of a conflict of interest," he said in a statement. (Reporting by David Milliken; editing by William Schomberg)