Minutes of the Meeting of the Court of Directors held on 25 October 2022


David Roberts, Chair

Andrew Bailey, Governor

Ben Broadbent, Deputy Governor – Monetary Policy

Sir Jon Cunliffe, Deputy Governor – Financial Stability

Sir Dave Ramsden, Deputy Governor – Markets & Banking

Sam Woods, Deputy Governor – Prudential Regulation

Anne Glover

Sir Ron Kalifa

Diana Noble

Lord Jitesh Gadhia

In attendance:

Ben Stimson, Chief Operating Officer


Frances O’Grady


Sebastian Walsh

1. Conflicts, Minutes and Matters Arising

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

The minutes of the meeting held on 16 September 2022 were approved.

The Secretary noted that this was the first meeting of Court Chaired by David Roberts, who took up the role on 24 October 2022. The Chair said that he was grateful for the opportunity and looked forward to working with all members of Court.

Under Matters Arising, the Secretary noted that proposals to update the Personal Financial Transactions policy – previously discussed at July Court – would return to Court shortly.

The Chair welcomed Lord Gadhia, newly appointed as a non-executive member of Court.

2. Update on Recent Bank Interventions in the Gilt Market

The Governor updated Court on the Bank’s actions through the recent period of market volatility.

The Governor noted that, since the previous meeting of Court, the Bank had launched both the Temporary Expanded Collateral Facility and the Energy Market Financing Scheme (EMFS).

The Governor said that Bank staff had worked intensively to develop and execute what had been its first gilt market intervention under its financial stability remit. This had included a decision to purchase index-linked government bonds for the first time. Jon Cunliffe added that he had appeared before the Treasury Select Committee to explain the Bank’s decision-making around this intervention.

Court expressed its gratitude to colleagues across the Bank for their dedication in delivering the Bank’s mission and supporting UK financial stability through this period.

The Governor agreed with other Court members that the Bank would express its thanks to staff for their extraordinary commitment.

3. Transactions Committee Update

Court received an update on the deliberations of the Transactions Committee (TransCo) since the last Court meeting, as related to both the EMFS and recent gilt market operations.

TransCo met to discuss the EMFS on 22 September and 13 October.

TransCo met to discuss market dysfunction in gilt market on 28 September, 9, 11 and 13 October.

4. Audit and Risk Committee (ARCo) Update

Diana Noble updated Court on the work of ARCo.

At its last meeting on 28 September 2022, ARCo received updates from Finance and Audit. The Bank’s external auditor, KPMG, set out its planned approach for the next year.

Diana Noble said that ARCo had also received an updated from Andrew Hauser, Executive Director for Markets, as it had met on the same day the Bank launched its gilt market intervention.

Diana Noble added that ARCo also considered how the Bank’s Finance Directorate used modelling.

The Chair noted that Diana Noble will remain as interim chair of ARCo until a new permanent Chair is appointed.

5. Remuneration Committee (RemCo) Update

Anne Glover, interim chair of RemCo, provided an update on the work of Committee.

At its last meeting 18 October 2022, RemCo was updated on the appointment of the new Executive Director for Resolution and considered matters related to pay, pensions and the recruitment of other senior roles.

It also approved the proposed initial relocation costs for Catherine Mann, external member of the MPC, noting the Bank had agreed to support her relocation to the UK at the time of her appointment.

6. RTGS Renewal Programme Update

(Victoria Cleland)

Victoria Cleland updated Court on the RTGS Renewal Programme. She said the ECB’s decision to delay its ISO 20022 transition would impact the Bank’s own RTGS Renewal programme. She said that the Programme was assessing whether and if so what revisions to the timeline would be needed – and placed great importance on effective communication of this decision, both internally and with industry.

Court thanked Victoria Cleland for swiftly undertaking work to assess the impact of this on RTGS Renewal.

In response to questions from some members regarding potential cost implications, Victoria Cleland noted that potential cost implications are being considered as part of the impact assessment.

A full update on the Bank’s approach to re-planning in light of the ECB’s decision will be tabled at the December Court meeting.

7. Q2 Quarterly Financial Update and 3‑year Business Plan Update

(Afua Kyei, Jane Tucker and Matt Cartledge)

Afua Kyei provided Court with a regular financial update.

Afua Kyei said Finance was supporting a prioritisation exercise, as the Bank considered how it should deploy its resources. She said the Bank had been asked to consider both the total scale of their activities and their proposed timelines for delivery of those activities.

The Chair noted that Court would discuss the prioritisation exercise in December and asked Finance to consider possible efficiency savings as part of this.

8. Update on Progress Regarding the Investment Strategy of the Pension Fund

Anne Glover presented a paper on the reinvestment strategy of the pension fund.

Anne Glover said the change in strategy, introduced in 2021, had increased return on the fund and therefore lowered the contributions required of the Bank. However, the level of contribution had been set at a fixed level three years ago. The pension fund evaluation had therefore begun its evaluation process sooner than in previous cycles to better capture the implications of that change of strategy.

Given recent focus on the use of LDI within pension funds, Anne Glover explained the use of LDI within the Bank’s own pension fund. She noted it had been very conservatively managed with limited leverage and therefore the risks of market volatility to the Bank’s own scheme had been extremely low.

The Chair thanked Anne Glover for her continued work on the issue.

9. Six-Monthly Risk Update

(Stephen Brown)

Stephen Brown presented the six-monthly risk update to Court.

The Bank’s financial risk framework was also presented to Court. Court approved the financial risk framework.

10. Central Services 2025 Update

Ben Stimson updated on the Central Services 2025, previously known as Central Services Optimisation. Ben Stimson explained that the update was to confirm the baseline cost of the project and that internal communications had been constructively received. He added that the Chair, David Roberts, would chair a new advisory group on Operations, starting with a focus on technology to support the programme. It would not be a sub-committee of Court, as its function would be advisory rather than governance.

11. Project Update for Enterprise Integration Programme (EIP)

Court approved the item.

12. Project Update for ISO 20022

(Simon Davis and Rebecca Braidwood)

Simon Davis updated Court on the progress of the project, noting that the ECB’s decision to delay its own implementation of ISO would delay the programme further. He would return to back to Court with an update on how it will respond to the ECB’s news at a future date. Rebecca Braidwood said there was wider work ongoing within the Bank to consider what other projects might be delayed by the ECB’s action.

Court approved the item.

13. Executive Director for Resolution Appointment

(Jane Cathrall)

Court approved the appointment of Melanie Beaman to the role of Executive Director, Resolution.

14. Next IEO Evaluation

(Melissa Davey)

Melissa Davey set out that the next IEO evaluation would focus on the Bank’s approach to Data. Court approved this, noting it was important not only to look at how the Bank analyses data but gathers and stores them. The IEO agreed to finalise the scope of the review and explore how to ensure the right expertise supported it.

15. Committee Appointments and Conflicts Update

(Sebastian Walsh)

Court noted the paper.

16. Items for Information

Court noted:

  • MPC Report
  • Central Bank Digital Currency
  • Forward Planner

The meeting of Court was closed.


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