The nephew of Bruno Schroder, the billionaire controlling shareholder of the Schroders fund management group which includes a private banking business, was promoted to the main board yesterday in a boardroom shakeup.

Philip Mallinckrodt was promoted to the board in recognition of his success in transforming the group's private banking division, Schroders said in a statement.

“Philip Mallinckrodt has successfully led the transformation of our private banking business and is also responsible for our important property business,” said Schroders chief executive Michael Dobson.

Stephen Brooks, the finance director, is leaving the company and will be succeeded by Kevin Parry, who is a Schroders non-executive director and audit committee chairman.

Mr Parry was forced out as chief executive of Management Consulting Group in February after a shareholder revolt led by Gartmore over his £1 million annual pay packet, according to media reports. Mr Parry has been a non-executive member of Schroders since 2003 and was chairman of the audit committee and member of the remuneration committee.

Mr Mallinckrodt is the son of George Mallinckrodt, who, with Sir Win Bischoff, grew Schroders into one of London’s biggest integrated securities houses in the 1980s. He is married to Bruno Schroder's sister Charmaine and remains president of Schroders.

The family wealth was put at £1.6 billion in the Sunday Times Rich List.

Andrew Beeson, a Schroders non-executive director, takes over as chairman of the audit committee.