Merrill Lynch’s head of equity capital markets for Europe, the Middle East and Africa is leaving to take on one of the most senior roles at the vehicle set up by the UK Government to manage its stakes in banks, including Royal Bank of Scotland and HBOS, that receive taxpayer money.

UK Financial Investments, which was set up this month to oversee the Government's shareholdings in RBS, HBOS and merger partner Lloyds, and will also oversee fully state-owned companies including Bradford & Bingley and Northern Rock, has recruited John Crompton as head of market investments.