FIRB chairman Brian Wilson suspends himself as adviser to Carlyle investment house

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FIRB chairman Brian Wilson suspends himself as adviser to Carlyle investment house

By Sarah Danckert
Updated

The man charged with leading the decision making process for major foreign investment in Australian assets or companies has bowed to public pressure over his side job with a major foreign investment house.

Foreign Investment Review Board chairman Brian Wilson on Wednesday suspended his involvement as an adviser to private equity investment house The Carlyle Group after questions were raised about a potential conflict of interest.

FIRB's Brian Wilson. The key rule was that state-owned entities would be allowed to buy up to 50.1 per cent of Ausgrid, out of the 50.4 per cent up for grabs.

FIRB's Brian Wilson. The key rule was that state-owned entities would be allowed to buy up to 50.1 per cent of Ausgrid, out of the 50.4 per cent up for grabs. Credit: Louise Kennerley

He took up the appointment on September 5.

Mr Wilson's appointment with The Carlyle Group came after some recent controversial FIRB decisions to recommend the blocking of foreign investment purchases including two separate tilts for NSW's electricity network Ausgrid

US-based Carlyle has $US178 billion in assets under management and is a major player in multinational deals and investments. Only recently, Carlyle was reported to be looking for investment opportunities in Australia. It also owns Coates Hire.

Mr Wilson's tried to soothe concerns by agreeing to recuse himself from any decision relating to Carlyle.

However, questions were still raised about whether his decisions to approve or block deals would be influenced by his role at Carlyle, particularly if Carlyle had been an underbidder for an asset or a competitor to the group seeking FIRB approval.

"To ensure there can be no question as to the integrity of Australia's foreign investment review system I have decided to suspend the commencement of my proposed role with The Carlyle Group until April 2017, when my term as part-time non-executive chairman of the FIRB expires," Mr Wilson said.

"Should a matter involving The Carlyle Group come before the FIRB prior to April 2017 I will of course recuse myself from any involvement," Mr Wilson said.

Mr Wilson said his proposed appointment was cleared with the Australian government on the basis protocols regarding, according to Mr Wilson, "the very rare conflicts" between advising The Carlyle Group and running FIRB.

"However, having noted concern in some quarters and to ensure appropriate and due public confidence in the foreign investment review system, I have decided to take this extra measure," Mr Wilson said.

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