Jacob Rees-Mogg's investment firm opens second Ireland fund but insists it 'has nothing to do with Brexit’

Brexiteer MP defends fund, claiming: 'SCM has funds in countries across the world according to client demand'

A firm co-founded by the Conservative MP Jacob Rees-Mogg has set up its second investment fund in Ireland, insisting it “has nothing to do with Brexit”.

It comes after the prominent Brexiteer faced questions last month after it emerged Somerset Capital Management (SCM) had set up its first Dublin-registered investment fund.

The business, which invests millions into emerging and frontier markets, also issued a stark warning over Brexit earlier this year, suggesting there was the likelihood to be “considerable uncertainty” as Britain leaves the bloc.

But in a statement, the company said: “Our decision to choose Ireland as a domicile had absolutely nothing to do with Brexit. We have funds domiciled all over the world including in Europe, the US and Australasia, and we will continue to offer a global service to our client base.”

The firm’s chief executive, Dominic Johnson, also told The Times that Mr Rees-Mogg’s politics were “entirely irrelevant” to the business and that he “doesn’t have anything to do with the day-to-day management” of SCM, which was founded in 2007 – three years before Mr Rees-Mogg became an MP.

Mr Rees-Mogg, who now chairs the European Research Group of Tory Brexiteer MPs, told The Independent: “SCM has funds in countries across the world according to client demand. Previously our frontier fund was US-based. Dublin has long been a popular fund jurisdiction, I was first involved in setting up a Korean fund there in 1993.”

According to the register of members’ interests, which requires MPs to log their employment and earnings outside of parliament, the MP regularly receives around £14,500 per month for his work at SCM and he claims to dedicate 30 hours a month to his duties at the company.

Referencing Brexit earlier this year, the company’s prospectus said: “During, and possibly after, this period there is likely to be considerable uncertainty as to the position of the UK and the arrangements which will apply to its relationships with the EU.

“This uncertainty may affect other countries in the EU, or elsewhere, if they are considered to be impacted by these events.

“As [the firm is] based in the UK and a fund’s investments may be located in the UK or the EU, a fund may as a result be affected by the events described above.”

In June, Mr Rees-Mogg, who is a partner at SCM but does not make investment decision, told The Daily Telegraph: “A number of existing and prospective clients requested domiciled access to Somerset’s products.

“The decision to launch the fund was nothing whatsoever to do with Brexit.”