Court minutes from 2023 that were previously redacted

8 February 2023

Governor’s Update

The Governor updated Court on the transformation of the Bank’s central services, including technology, and how it proposed to prioritise within a challenging budget environment. The Governor also said that enhancing the Bank’s culture was a key priority for the Bank’s whole leadership group over the coming year. The results of the staff Viewpoint survey, conducted at the end of 2022, were less positive than the previous year’s across a number of key indicators. The Governors thought this could, in part, be due to the need to respond to a number of external shocks over 2022. Governors committed to taking action to address this.

The Governor set out that the Bank had been able to implement the Annual Salary Review following successful negotiations with the Union. A fair framework had been used to assess individual pay awards, with lower paid colleagues receiving a proportionately higher pay award. The pay awards had also been used to address inconsistencies within the reward structure, with those furthest away from their relevant pay reference point receiving a greater award than those close to – or exceeding – it. Non-executive directors said that pay would continue to be a key area of focus over the coming year, due to the economic outlook and the need to address inconsistencies with the Bank’s reward framework.

Audit & Risk Committee (ARCo) - oral update

It was noted that a technology transformation plan – including its approach to obsolescence, architecture, and skills – would be tabled for discussion at Court in the coming months. Ben Stimson said it had been agreed that the investment budget would not be increased from £100m this year.

Remuneration Committee (RemCo) - oral update

RemCo had agreed to discuss the Equal Pay Audit at a forthcoming meeting, internal publication having been delayed while the People & Culture Directorate undertook a detailed assessment of its findings.

Cloud Project

(Sushil Saluja)

Sushil Saluja introduced the item. Court’s approval was sought with regards to the lifetime cost of the Cloud Programme. Court approved the item.

Review of Personal Financial Transactions (PFT) Policy

(Sebastian Walsh)

Court approved both the PFT Policy and the approach in relation to the proposed public register of interests. The Chair noted that the success of all policies of this nature would depend on the integrity of each individual working for the Bank.

The non-executive directors emphasised the importance of considering carefully the likely lines of questioning that would be put to the Bank upon publication.

Viewpoint Survey Results

(Jane Cathrall and Mark Menary)

Non-executive members of Court highlighted the importance of communicating clearly what the Bank’s approach to pay and reward was, including the value of the pension to staff.

Jane Cathrall said the Bank was undertaking a number of steps in response to this survey, including launching a new “Bank’s Behaviours” framework. This was focussed on increasing the Bank’s leadership capabilities as well as promoting a culture whereby staff felt able to speak up and challenge more freely. Non-executive members strongly supported this focus on leadership and culture.

The important role of the Bank’s staff Networks in supporting a diverse, inclusive workplace was noted. Court reflected that the staff Networks would be key to engage with in launching an action plan to address the findings of the Viewpoint survey.

RTGS Renewal Programme update

(Victoria Cleland, Sushil Saluja and John Stocker)

Victoria Cleland said the Bank had engaged closely with RTGS Direct Participants, central banks and payments messaging providers to ensure that the timeline was robust.

Non-executive members said the outcome of operational acceptance testing and Direct Participants readiness was key. Victoria Cleland said she was confident the outcome would be positive, though had contingency available if required.

Court members noted that the replan had cost more than anticipated. Ben Stimson noted that negotiations were on-going with Accenture, with the aim of reducing spend.

Court supported the use of contingency funds for Public Key Infrastructure – a strategic security mechanism that enables secure communications to be verified and protected - and approved the budget for RTGS Renewal.

The Bank’s Finances

(Afua Kyei)

Afua Kyei presented the 2023/24 budget, the Bank’s 3-year business plans, Q3 financial forecast and payment in lieu of dividend.

The Chair said that a review of investment priorities was planned for the second half of 2023.

Afua Kyei also updated Court on the Bank’s capital position, the condition of which would mean that – while the Bank would not make a payment in lieu of dividend for 2022/3 – it should be able to do so over the coming years.

Papers for information

Court noted:

• Monetary Policy Committee Report
• RTGS Update
• Central Banking Digital Currency Consultation Paper
• COO Operational Dashboard
• Speaking Up Annual Report
• Communications Metrics

5 April 2023

Conflicts, minutes and matters arising

The Chair proposed to hold a Board Strategy Away Day in the fourth quarter of the year. Court suggested one further topic for discussion could be the Bank’s role within the future international payments landscape. Court thought the Away Day should balance both learning and strategic discussion.

The Chair welcomed Ruth Smith to the meeting and noted that Ruth had been appointed as interim Secretary of the Bank. Sebastian Walsh would be taking a period of parental leave and was due to return to the Bank in September 2023.

Governor’s Update

Members of Court reflected that a number of lessons could be learnt from recent events. The Bank’s directorates would be exploring these over the coming weeks and months. The Governor noted that the Bank is continuing to assess approaches to resolution for small banks which can support improved continuity and protection outcomes for their depositors.

Audit & Risk Committee (ARCo) - oral update

Diana Noble noted that an external member of the PRC, Tanya Castell, had joined ARCo as an Observer.

Remuneration Committee (RemCo) - oral update

…Second, to discuss matters relating to pensions and objective setting.

RemCo had considered the communications and engagement plan for the Pensions Review. RemCo stressed the importance of the need for the Pensions Review, due to the complex nature of the Bank’s pension scheme. Following announcements in the recent Budget regarding the lifetime allowance for pensions, RemCo would be required to consider its pension opt-in and opt-out policy.

RemCo had reflected on the Bank’s approach to individual objective setting.

RTGS Renewal Programme update

(Victoria Cleland, Sushil Saluja and John Stocker)

…This was viewed as a major milestone in the Bank’s own RTGS Renewal Programme.

Feedback gathered from Direct Participants had shown that they viewed the Bank’s own Programme and preparations as going well.

Court thanked those working on the RTGS Renewal Programme for their dedication and creative thinking, delivering a complex, key strategic priority for the Bank. Court noted the importance of maintaining the teams’ resilience as the TS2.1 “go live” milestone approaches.

COO Update

(Sushil Saluja, Afua Kyei and Simon Davis)

Sabine Chalmers noted the importance of clear internal communications and effective business partners in supporting the successful delivery of the Programme.

The pace of transformation in technology had been slower than anticipated as it was considered important to stabilise the Bank’s technology estate before implementing too many changes. Importantly, it was observed that the Bank’s systems had stabilised, with fewer operational outages taking place.

Programme Approvals

1. Finance Systems Modernisation Programme

Afua Kyei introduced the item. Court agreed that the Programme was a priority for the Bank. Court approved the item.

Sam Woods asked how approving this Programme would impact the Bank’s Investment Portfolio, which had a fixed budget envelope for the year ahead. It was confirmed that progressing this Programme would use the remaining contingency budget.

Annual Report and Accounts text

(James Bell, Jane Cathrall, Afua Kyei and Chris Peacock)

…It was noted that Court’s views were being sought as to whether this part of the Annual Report was fair, balanced and understandable.

Non-Executive members of Court offered a number of reflections, including on the Governor’s foreword and the reports’ visuals, and felt it would be important to thank staff for their efforts over the past year and recognise the collective achievements of the Bank.

Non-Executive Directors thought it important to appropriately position the forward-looking statement on the Bank’s regional hubs. They also challenged the presentation of data pertaining to D&I statistics.

With prospective employees in mind, Sabine Chalmers highlighted the importance of explaining the Bank’s various career paths.

Six-Month Risk Report

(Stephen Brown)

…It was anticipated that this would return to normal levels in short order, assuming no further significant external shocks.

Court noted that there was a suite of important work underway with regards to behaviours. The Chair noted that water-tight policies and effective procedures were required should inappropriate behaviour be reported. Court asked for consideration to be given to the robustness of Bank policies when reputational risk is discussed at Court.

Governor’s Objectives

The Governor presented his objectives for 2023-24 to Court.

In formulating his objectives, the Governor noted that he had focussed on what change he wanted to deliver in the year ahead, rather than focussing on business as usual. The intention was for the Governor’s objectives to be used as a template for objective setting within the Bank’s Senior Leadership Team. The Governor invited comments from Court on the content and form.

Court was supportive of the Governor’s objectives, noting that they had been presented in an improved form from previous years. Members of Court reflected that changing the approach to objective setting across the Bank would require a cultural shift.

Non-Executive Members of Court offered a number of observations and insights. The Governor thanked Court for their valuable comments. The Governor agreed to circulate the final set of objectives, incorporating this feedback, to Court.

25 May 2023

Conflicts, minutes and matters arising

Court noted updates provided under Matters Arising. In particular, the Chair set out that planning for the Court Away Day was underway.

Governor’s Update

The Governor updated Court on a number of matters, including the recruitment processes for key senior appointments, including the Bank’s Chief Information Officer (CIO). He noted the recently announced Competition and Markets Authority (CMA) investigation into competition law on UK bonds and that the Bank stood ready to provide the CMA with any information and assistance required.

The Governor set out that the Bank’s CIO was due to leave the Bank in June. Ben Stimson’s immediate priority was to provide stability for the Bank’s Technology function and it was hoped that interim arrangements for the position could be implemented swiftly.

Court noted the Bank-wide benefits of successfully integrating the Bank’s central services functions with its policy areas. The need for collective ownership was noted. It was suggested that Ben Stimson discuss the matter with other central banks that were undertaking large transformation programmes.

Remuneration Committee (RemCo) - oral update

Anne Glover set out that at its last meeting, RemCo had considered the Remuneration Report of the Bank’s Annual Reports and Accounts.

RemCo considered the arrangements for the end of Jon Cunliffe’s term and reflected on the Bank’s approach to the ASR.

RemCo received an update on the Pensions Review and approved the Bank’s approach to colleagues who may wish to opt-in to the Bank’s pension.

COO Update

• Technology Consultancy Framework 2 (TCF2)

(Sushil Saluja)

It was noted that Court were not required to make a formal decision with regards to TCF2, as the costs associated with the framework had been approved through the Programmes that would utilise the framework. However, Ben Stimson had recommended that Court were sighted on TCF2 due to the valuable learnings that could be drawn from the Bank’s approach to employing permanent and contractual staff within its Technology function.

Court thanked Ben Stimson for highlighting the Framework. Court noted the importance of striking the right balance between on-going capability and capacity, building and retaining in-house skills and formulating a strategy to support the Bank’s approach to the topic. It would be essential to build a robust picture of future demand to inform strategic sourcing decisions.

The Bank’s Finances

(Afua Kyei)

Afua Kyei updated Court on the Bank’s Finances, a quarter into the financial year. It was noted that the Bank had underspend compared to forecast spending, over the quarter.

The Bank’s Executive Operations Coordination Committee (EOCC) had agreed that this underspend should be allocated to non-reoccurring projects over the course of 2023. Court noted that it was important that should this money be invested that robust business plans and resources were in place to deliver them.

The Governor noted that the PRA had consulted industry on its Levy for this financial year. As any additional spend on Bank wide projects had the potential to flow through to PRA Levy, the PRA would be excluded from this additional spend. It was set out that the Levy could be reconsulted on in future years.

Bank of England Annual Report and Accounts

(James Bell, Chris Peacock, Afua Kyei and Richard Faulkner, Ryno Swart (KPMG))

(b) Letter of Representation

The Bank’s external auditors, KPMG, said that audit was progressing as planned.

Court considered the management processes to support signing of the Letter of Representation and agreed to delegate signing of the Letter of Representation to the Chair.

Afua Kyei explained that all EDs and Governors had committed to disclose and if need be, re-attest, whether any changes took place between the May Court meeting and Signing Committee. Afua Kyei noted that further assurance was being sought with regards to two sections of the Annual Reports and Accounts: the carbon footprint table and the figures cited in the Remuneration Report.

Court agreed that it was appropriate to prepare the accounts on a going concern basis.

Court delegated the signing of the Annual Reports and Accounts to the Signing Committee.

Reflecting on previous years’ Annual Report processes, Afua Kyei noted that the assurance process had been made more robust with fuller use of attestations.

Chairs Effectiveness Review of the MPC

(Melissa Davey and Alan Castle)

Court, as part of its oversight functions, keeps under review the processes of the Bank’s Policy Committees.

The Chair introduced the item. He noted that the findings would return to the July Court. It was thought likely that recommendations would focus on the importance of succession planning, with particular regard to the skills mix on the Committee, as well as the approach of the Committee with regards to the role of the forecast in highly uncertain times.

Resolution Report

(Melanie Beaman and Rob Zammit)

……Due to recent events in the banking system, the forward work plan would also include learning lessons from the orderly failure and resolution of Silicon Valley Bank.

With regards to lessons learnt from Silicon Valley Bank, it was confirmed that the Bank had been able to undertake work during the course of the resolution weekend on a number of potential outcomes at the same time. Court recommended that the Resolution Directorate consider whether the Bank could respond to multiple bank failures occurring simultaneously and that further work was needed on how to operationalise a ‘swarm’ of resources in practice.

It was acknowledged that the Resolution Directorate had a positive, constructive culture. Melanie Beaman noted that people risk remained elevated due to key people risk, high levels of turn-over in certain teams and the need to ensure high levels of education and training.

Committee Appointments and Conflicts

(Ruth Smith)

It was noted that Ron Kalifa and Frances O’Grady had been re-appointed to Court for a second term.

The Chair and the Governor observed that the Bank’s approach to assessing potential or perceived conflicts of interest had been reviewed and was now more robust.

Reputational Risk

(Stephen Brown, James Bell, Baron Wong and Rebecca Estrada-Pintel)

Court discussed a framework for assessing reputational risk across the Bank’s core mission, focusing on both operational and policy matters. Court members noted that it was a useful framework that could be a basis for future discussions and offered a number of observations. It was noted the operating environment for institutions was challenging and it was important to be able to focus on the longer term strategic questions as well as immediate issues. Court reviewed the framework and considered additional risks that could be added included operational risks (including a series of smaller things going wrong), and staff behaviours, especially in a hybrid working environment, and the impact of risks on different groups of stakeholders.

There was discussion of how to increase the Bank’s outreach work, including at ED and HoD level and through the Bank’s wider network.

The Chair thanked the team for their work on the framework.

Papers for information

Court noted:

• EDMC’s Report on the conclusion of investigation and enforcement proceedings against former HBOS senior managers

5-6 July 2023

Conflicts, minutes and matters arising

The minutes of the meeting held on 25 May 2023 were approved.

Under Matters Arising, the Chair noted that the Bank had agreed with the NAO that they would review the Bank’s Legal, Compliance and Conflicts functions in H2 2023. The NAO were due to update Court at its September meeting on the scope of its review.

Chair’s Update

Since Court’s last meeting, the sub-group formulated for approving the next steps with regards to the Bank’s relationship with De La Rue had met and approved the Bank’s approach to the matter.

The Chair updated Court on arrangements for its Away Day. The Away Day would focus on two topics. First, on Artificial Intelligence (AI): both how AI could be used within a central bank and by the Bank as an organisation. Second, on a range of factors that might shape the future of central banking. Unfortunately, due to time constraints, Court would not be able to discuss CBDC at the Away Day. The Chair asked Jon Cunliffe to provide an out of round update to Court NEDs on CBDC, focussed on the implications for the Bank, at the appropriate point.

RTGS Renewal Programme update

(Victoria Cleland, Nathan Monk and Afua Kyei)

…As focus shifts from TS2.1 to TS3, Court thought it important to consider the differences between the two milestones and how that could be communicated to an external audience. The Non-Executive Members of Court requested that the narrative for TS3 – focussed on innovation – was shared with them, ahead of the September Court meeting.

Court agreed that the frequency of updates to Court could be restructured in the coming months. This arrangement should be reconsidered as the go-live event for TS3 became closer.

Court were asked to consider how RTGS’ budget was treated within the Bank’s financial framework. Court agreed that that the cost of the build and run of RTGS should be taken outside of the Bank’s headline budget.

This would allow the Bank to adapt RTGS further – should industry want – and amend the cost envelope for it, without impacting the Bank’s overall budget. Jon Cunliffe set out that from a supervisory perspective, this was the preferred approach as ring-fencing the cost of operating protected the critical function from other potential budgetary pressures.

Court supported a strategic review of the presentation of the Bank’s Accounts.

IEO Data Evaluation

(Melissa Davey, David Ronicle, Michael Lever, Catherine Charnock, Barnaby Vingoe, James Benford)

The IEO updated Court on its ongoing review into the Bank’s Data Strategy. The IEO would return to Court in September with a further update.

Court thanked the IEO for their report and noted their support for both its findings and the work that was already underway to remediate them.

Court offered a number of observations on the IEO’s report. For example, that further work should be undertaken to establish what it means to be a data-led organisation; that the importance of building corporate memory and culture should be highlighted and that accountability was key to the success of a new Data Strategy.

In response to questions, James Benford set out that work had been undertaken to establish the current position on Data within the Bank. A key focus had been on improving governance around data and establishing collective ownership and leadership of the matter. Both the IEO’s review and work undertaken by James Benford had been well received.

Audit & Risk Committee (ARCo) - oral update

…ARCo welcomed the new Quarterly Risk Report, with its enhanced reporting on risk trends. ARCo were considering how best to foster an accountability culture, in order to encourage more broad-based progress with regards to risk mitigation.

Remuneration Committee (RemCo) - oral update

RemCo were updated on the review of pensions arrangements. An update on this was tabled for the December Court meeting. Court requested an update on the Bank’s internal communications strategy, ahead of this. Court noted that staff engagement was going well so far with high levels of participation. RemCo had requested a one-page document that set out the narrative for change and recommended that this also be shared with Court.

The Bank’s Finances

(Afua Kyei, Ed Moore)

…It was noted that the change from the current Cash Ratio Deposit funding model to a Bank of England Levy could now be implemented, as the Financial Service and Markets Act had received royal assent. Afua Kyei set out that the transition between regimes had potential implications for the Bank’s balance sheet and capital position. The Bank would engage with HMT on this matter and come back to Court with a proposed approach in due course. Non-Executive Members of Court requested a teach-in on this aspect of the Bank’s balance sheet in advance of this discussion.

Court discussed the Bank’s financial planning assumptions. In particular, the proposed pay settlement for 2023/24 would be a core part of agreeing the annual budget.

A streamlined planning and prioritisation process had been planned for this financial year. In response to questions, it was confirmed that the Bank’s Executive Directors were content with this approach.

Court welcomed to the meeting Ed Moore, who had been appointed as interim CFO while Afua Kyei took a period of leave.

COO Update

…It was recommended that efficiency and cost savings continued to be a key focus for the CS2025 Programme. It was noted that CS2025 continued to focus on process improvements, with an immediate priority around workplace adjustments.

Staff Engagement and Internal Communications – six monthly update

(James Bell and Sian Jones)

…The Bank’s Heads of Division were highlighted as a key cohort to target in internal communications. Engaging this cohort more, and giving them the tools to engage more effectively with their staff, was seen to be a powerful tool for increasing engagement overall in the Bank.

Court discussed what it meant to be a senior leader and the importance of leaders ensuring that staff were engaged with the mission and purpose of the organisation. Court observed the power of engaging in person and asked Executive Members of Court to consider whether the Bank’s Ways of Working facilitated good leadership opportunities.

Court noted the importance of celebrating successes - across the range of the Bank’s work and skill sets. The positive impact that a number of small, targeted interventions could have on staff engagement was also highlighted.

Support for Monetary Policy: Annual Report to Court 2022/23

(Melissa Davey, Alan Castle)

…This would be addressed via an externally led review. MPC communications would examined as a part of this exercise. The importance of Committee succession and skills planning was also noted. The Chair observed that MPC members had expressed their thanks for the contributions of Bank staff.

Matters of Note Occupying the Legal Directorate and Parliamentary Affairs

(Sonya Branch and Clare Cowan)

Sonya Branch gave an outline of LD’s wide-ranging role and noted the development of career paths over the last ten years– the last piece of which was the introduction of legal trainees, starting from this September. Clare Cowan outlined the Bank’s engagement strategy with the Commons and Lords, noting the context of the forthcoming election. Court members were also interested to hear observations and perspectives on risks to the Bank and cultural change.

Papers for information

Court noted:

• …
• Annual Report and Accounts Signing Committee minutes

22 September 2023

COO Update

Catering Contract

Ben Stimson outlined his proposed renegotiation of the catering contract for the Bank. He said he had chosen to place greater weight on quality, rather than cost, mindful of the importance of creating an office environment that would attract staff. He added that, due to forecast use of the catering services, overall cost should also be less. The contract did not require Court approval, due to falling under the relevant cost threshold, but nonetheless Ben Stimson said he wanted to inform Court.

Court thanked Ben Stimson for his update.

Data

1. The Bank’s Data and Analytics Strategy and its response to the IEO evaluation on data

(James Benford and Paul Robinson)

…a fuller implementation plan and an initial understanding of delivery implications and costs. The team were requested to identify 3 or 4 data journeys where we can test and learn to further develop our capability and report back at the next update. This will help Court better understand the cost and implications of deploying in the cloud.

31 October 2023

Conflicts, minutes and matters arising

…The Chair observed the importance of the upcoming Court agendas and invited Members of Court to share views on what could be deprioritised, to assist with time management.

Governor’s Update

Sam Woods, as Executive Sponsor of the Bank’s faith networks, said that he had met the Bank’s Jewish and Muslim staff networks, to listen to staff reflections and concerns following events in the Middle East.

Appointment of the Bank’s External Auditor

(Ed Moore and Matt Cartledge)

Matt Cartledge updated Court on the process to choose the Bank’s next external auditor.

Matt Cartledge set out that ARCo had agreed to recommend to Court that Ernst & Young (EY) be appointed as the Bank’s External Auditor at its meeting on 18 October.

Court approved the appointment, subject to the agreement of the National Audit Office.

Court requested that on appointment, further work was undertaken to understand whether EY could conclude an existing Section 166 review that it was undertaking on behalf of the Bank. The Chair noted that he would like to speak to the firms that had submitted bids, at the appropriate point.

Remuneration Committee (RemCo) - oral update

…RemCo also received an update on the Pensions Review. Members had asked for the Review to consider a communications and engagement plan, and considered whether the Bank should consider its overall reward framework as part of the Review process.

RTGS Renewal Programme update

(Victoria Cleland, Nathan Monk, John Stocker, Mike Jones and Andrew Smith)

(i) RTGS Outage Review

As well as the Internal Audit review, the RTGS Programme had engaged PwC to conduct an external review of the RTGS design with a view to considering where any other vulnerabilities might exist.

In response, several non-executive directors of Court emphasised the importance of ensuring that there is not a single point of failure in the Bank’s technology architecture. Court recommended that further work was undertaken to explain the interaction between, and practicalities of, various recovery thresholds. Court asked to see an update on this, at the appropriate juncture.

1. RTGS Renewal Update

…Victoria Cleland noted there were challenges around both the preparations to enable Direct Participants to use the testing environment and pressures on staff. Court thanked Victoria Cleland for the frank assessment of the status of TS3 and offered their support through the decision-making process.

Q2 Quarterly Finance Report and 2024/25 Budget Update

(Ed Moore and Kristy Eden-Green)

Ed Moore said Court would be updated on the Bank’s business plans at a forthcoming meeting. He added that Executive Directors would be asked to make savings to fund the increase in staff costs and to give further consideration to how headcount is managed.

…Court noted the importance of this change for the ability of the Bank to fund execution of its full range of responsibilities in future. Non executive members noted Court may need to consider changes to the Bank’s accounting position, and its potential impact, in light of the outcome of the consultation.

Six-monthly Risk Updates

(Stephen Brown and Rebecca Estrada-Pintel)

…With regards to the Bank’s market operations, Court observed that the lending made under TFSME was due to be repaid. This would not pose risks to the Bank’s balance sheet but could impact the business models of certain challenger or smaller banks.

Court Review of Ethnic Diversity and Inclusion and Gender Equality Update 2023

…Court agreed that the Court Review should be tabled for discussion at Court annually, providing a high-level overview of how the Bank is performing. The Chair noted that NomCo would include two items on its forward planner and committed to discuss them annually: first, progress against the actions recommended as a result of the Court Review; second, a discussion of other pertinent DE&I considerations. He added that this latter discussion must cover disability.

Conflicts of Interest policies

(Sebastian Walsh, Michael Salib and Alison Kavanagh)

…Court welcomed the revisions. Tom Shropshire suggested that the Bank might consider the breadth of policies in this space in future, supplemented with more granular guidance around how policies are executed. Sebastian Walsh said that possibility could be considered in the 2024 ‘deep dive’ review of Our Code as a whole.

Committee Appointments and Conflicts update

Sebastian Walsh highlighted that the appointment process for external policy committee members was underway and good progress was being made. He noted that HM Treasury had advised policy committee members seeking reappointment to engage fully with the process.

14 December 2023

Audit & Risk Committee (ARCo) - oral update

…its third-party suppliers and process risk within the organisation. ARCo was also updated on the Bank’s appointment of a new auditor.

RTGS Renewal Programme

(Victoria Cleland, Nathan Monk and John Stocker)

1. Value for Money

…Court commended the approach taken by RTGS Renewal as an example of high-quality project management for large scale programmes.

Ron Kalifa asked how much of the framework RTGS had used was visible externally, and whether more could be done now to explain the benefits Renewal would bring. Victoria Cleland noted that though the framework was not visible in this form externally, work was on-going to explain the benefits renewal would bring to industry and key stakeholders with current emphasis on ISO20022.

1. RTGS Renewal Programme Update

Victoria Cleland said that good progress had been made on TS3 since the previous Court meeting, particularly with regards commencing the testing by participants.

…She noted that a key milestone would be whether Participant Acceptance Testing could begin as planned in January and a decision reached as to whether the current timetable for TS3 could be maintained.

***

The Chair thanked Victoria Cleland for the update and noted an interim update to Court might be required ahead of its next scheduled meeting in February.

COO Update

(Nathan Monk)

…Ben Stimson also updated Court on the early findings from the National Audit Office. Its principal recommendations appeared likely to focus on improving how the Bank addressed more minor compliance breaches and awareness of risk controls.

Importantly, he said he and the team involved had maintained open and constructive relationship with the NAO through the process.

Pension Review

(Jane Cathrall and Natasha Wilson)

..Court members also noted that it was important to consider the proposals against the benchmark of the civil service pension scheme. They added that the Bank should ensure staff were aware of where they could seek advice on pensions.

IEO – next evaluation

(Melissa Davey and Michael Lever)

…First, the IEO proposed to assess the PRA’s approach to secondary growth and competitiveness. In response to questions, Melissa Davey said the PRC would be informed of the review’s findings, but had no role in commissioning it.

Second, the IEO planned to assess the Bank’s horizon scanning capabilities. Melissa Davey noted that this would focus on macro-prudential and micro-prudential work in this space, as well as within Monetary Analysis to build on the Bernanke Review.

Committee Appointments and Conflicts

Court approved the appointment of Rebecca Jackson as the Executive Director for Authorisations, Regulatory Technology, and International Supervision. Sam Woods noted that Rebecca Jackson would also assume the role of executive sponsor for the replacement of Filesite.