Morgan Grenfell Asset Management suspended U.K. pensions chief Nicola Horlick, in a move with potentially severe implications for the firm's U.K. pension operation, which manages £18 billion ($30 billion).
Ms. Horlick has been suspended while an internal investigation into a ``potential breach of her employment contract'' is carried out, a Morgan Grenfell spokesman said. Neil Dunford, chairman of Morgan Grenfell Investment Management, the firm's U.K. unit, will take over day-to-day responsibility in the interim.
Sources said Ms. Horlick was discovered to be in negotiations to leave Morgan Grenfell and attempting to take with her a team of portfolio managers. Standard contracts prevent executives from recruiting other employees while still in employment. Ms. Horlick is believed to be in discussions with ABN-AMRO Bank. Ms. Horlick could not be reached for comment.