UK Financial Investments, the body set up to manage the government's stakes in the banking sector, has hired a Bank of America Merrill Lynch veteran who advised on the recapitalisation of Lloyds Banking Group to a crucial role that has been vacant since May.

Jim O'Neil has been appointed as UKFI head of market investments, beginning at the start of October. He has joined from Bank of America Merrill Lynch, where he was most recently head of the international corporate finance and restructuring group.