Minutes of the Meeting of the Court of Directors held on 16 September 2022

The Bank's Court of Directors acts as a unitary board, setting the organisation's strategy and budget and taking key decisions on resourcing and appointments. Required to meet a minimum seven times per year, it has five executive members from the Bank and up to nine non-executive members.
Published on 08 November 2022

Present:

Diana Noble, Chair

Andrew Bailey, Governor

Ben Broadbent, Deputy Governor – Monetary Policy

Sir Jon Cunliffe, Deputy Governor – Financial Stability (Item 1 only)

Sir Dave Ramsden, Deputy Governor – Markets & Banking

Sam Woods, Deputy Governor – Prudential Regulation

Anne Glover

Sir Ron Kalifa

In attendance:

Ben Stimson, Chief Operating Officer

David Roberts, Chair designate

Apologies:

Frances O’Grady

Secretary:

Sebastian Walsh

1. Conflicts, Minutes and Matters Arising

The Chair welcomed David Roberts to the meeting, who attended as an observer. David Roberts noted he remained Chair of Beazley plc at this point in time.

There were no conflicts declared in relation to the present agenda.

The minutes of the meeting held on 12 July 2022 were approved.

The Secretary gave an update on items tabled on matters arising. It was noted that the Personal Financial Transactions policy will return to Court in December and discussion of the Bank’s data strategy will be tabled at a meeting when the new Executive Director for the area is in place.

The Secretary gave an update on the recruitment process for incoming Non-Executive Directors of Court.

2. Remuneration Committee (RemCo) Update

Anne Glover updated Court on the work programme for RemCo over the coming months.

3. Update on the Energy Markets Financing Scheme and other live issues

The Governor updated Court on a number of matters that had arisen over the summer, including discussion of possible changes to the Bank’s remit and the Government’s proposed call-in power regarding financial services regulation.

4. RTGS Renewal Programme update

(Victoria Cleland and Sushil Saluja)

Victoria Cleland and Sushil Saluja updated Court on the RTGS Renewal programme.

In response to questions from Court members, Victoria Cleland said that her principal focus at present was on the transition from operational acceptance testing to performance testing. She also outlined plans to ensure resourcing of the project remained appropriate.

The budget for RTGS was discussed.

5. Optimisation of central operations

(Sushil Saluja, Richard Windram and Joanne Muir)

Ben Stimson updated Court on work ongoing on Central Services and how it supported the Bank’s business areas.

Court members expressed their support for the optimisation programme. Some members underlined the importance of not duplicating functions within the Bank through the proposed structural changes.

6. Projects Update

(Sue Docker, Andrew Jales, Sushil Saluja and Joanne Muir)

The Chair noted to Court that, as per Matters Reserved to Court, projects with a lifetime spend of over £10m require approval from Court.

Ben Stimson said he was advising Court of a total of seven projects.

Two projects requiring approval, five that would require approval in due course.

The two necessitating approval at this stage were the Banking Sector Monitoring Replacement and the Risk and Work Manager.

Ben Stimson advised Court regarding further five projects that would soon require escalation to Court. Court asked that ARCo also consider these projects in advance of their return to Court.

Court approved the funding for the Banking Sector Monitoring Replacement and Risk and Work Manager projects.

7. IEO follow ups

(Melissa Davey, Michael Lever, Sasha Mills, Zish Jooma and Barnaby Vingoe)

The Independent Evaluation Office (IEO) team set out progress made by areas of the Bank that had recently undergone review.

Court agreed to formally close the evaluation into the Bank’s resolution arrangements and thanked the IEO and outgoing Executive Director for Resolution, Sasha Mills, for their efforts. Resolution was now a mature directorate within the organisation, having built its capacity and skills substantially. Court noted that, given the upcoming change in leadership, it would be important to maintain momentum.

The IEO noted that reviews of FMI and Insurance Supervision remained outstanding.

Jon Cunliffe said the intention was to conclude the FMI review by next summer, as it had been delayed by changes in the legislative framework.

The IEO said they would be ready to close the Insurance Supervision review after the final action, relating to communications around risk tolerance, was closed.

The IEO also noted that good progress had made on actions stemming from its evaluation of the Bank’s approach to Quantitative Easing.

8. Annual directorships update

(Sebastian Walsh)

The Secretary of the Bank presented the annual paper, recording any changes to directorships.

9. Committee appointments and conflicts

(Sebastian Walsh)

The Secretary of the Bank updated Court on progress regarding current committee appointments.

10. Items for Information

Court noted:

  • Monetary Policy Committee Report
  • RTGS/CHAPS Annual Report
  • Twelve month forward planner

The meeting of Court was closed.