HM TREASURY News
Release (PN 50/09) issued by COI News Distribution Service on 29 May 2009
Her Majesty The
Queen has been pleased to approve, under the Bank of England Act
1998 as amended by the Banking Act 2009, the appointment of the
following as directors of the Bank of England, starting on 1 June 2009.
* Brendan Barber
* Roger Carr
* Antonio
Horta-Osorio
* Susan Rice C.B.E.
* Mark Tucker
* Lord
Turner
* Harrison Young
These appointments are being made following an open competition
to identify new non-executive directors of Court, and have been
made in accordance with the Commissioner for Public Appointments
Code of Practice.
They join the Governor and the Deputy Governors, together with
Sir David Lees, who was appointed chair designate of the Court on
17 April 2009.
Brendan Barber, Roger Carr, Susan Rice C.B.E.
and Harrison Young have been appointed for a 2-year term. Antonio
Horta-Osorio, Mark Tucker and Lord Turner have been appointed for
a 3-year term. The appointment for different initial terms is to
stagger end dates and help ensure continuity on the Court going forward.
The Banking Act 2009 introduced a number of important reforms to
the governance of the Bank of England. These included: giving the
Bank of England a statutory objective to contribute to protecting
and enhancing the stability of the financial systems of the United
Kingdom; changing the governance structure of the Bank of England
to support these new responsibilities, including the creation of a
new Financial Stability Committee; and modernising the operations
of Court, reducing its maximum size from 19 down to 12 members, of
whom a majority must be non-executive.
These reforms are to be implemented on 1 June 2009.
Sir David Lees, the new Chair of Court, will confirm the
membership of the new Court committees shortly, including the
directors who will be appointed to the Financial Stability Committee.
The transition to a smaller Court is being facilitated by all
current non-executive directors vacating their posts immediately
prior to the start of the new appointments (without prejudice to
re-appointment). The current non-executive directors of Court that
will be stepping down are:
* Brendan Barber
* Roger Carr
* Amelia Chilcott Fawcett
C.B.E.
* The Hon. Peter Jay
* Sir John Parker
* Dr
David Potter C.B.E.
* Susan Rice C.B.E.
* Professor David
Rhind Esq. C.B.E. F.R.S. F.B.A.
* Arun Sarin
* James
Strachan
* Lord Turner
* Robert Wigley
* Geoffrey Wilkinson
Brendan Barber, Roger Carr, Susan Rice C.B.E. and Lord Turner
(whose appointment is ex officio) are being been appointed to the
new Court.
In announcing the new non-executive directors of
Court, the Chancellor of the Exchequer, Alistair Darling said:
"I am delighted to announce the appointment of the new
non-executive directors of the Bank of England. They will work
with the Governors and Sir David Lees to implement the reforms to
the Bank of England and ensure that it continues to fulfil its
existing responsibilities effectively.
"The current Court of the Bank of England, chaired by Sir
John Parker, has had to steer the Bank through unprecedented
financial conditions. I am very grateful to the non-executive
members stepping down from Court, who have fulfilled their
responsibilities with commendable dedication despite the
challenges faced."
The Chair-designate of the Court of the Bank of England, Sir
David Lees, said:
"I very much look forward to joining my new colleagues on
the Court of the Bank and working with them and the Governors
towards the achievement of the Bank's strategic objectives."
Notes for Editors
1. The Bank of England is the central bank of the United Kingdom.
Its core purposes are to ensure monetary stability and to
contribute to financial stability. The Bank of England is governed
by a Board known as the Court. The role of the Court is to manage
the Bank's affairs, other than the formulation of monetary
policy, which is the responsibility of the Monetary Policy
Committee. Court's responsibilities include determining the
Bank of England's objectives and strategy, ensuring the
effective discharge of the Bank's functions and the most
efficient use of its resources.
2. The appointment of non-executive directors to the Court of the
Bank of England are made by Her Majesty the Queen on the advice of
the Prime Minister and the Chancellor of the Exchequer.
Appointment as a non-executive director of Court is normally for
three years but on this occasion some are initially for a
different duration so as to stagger end dates and help ensure continuity.
3. These appointments have been made in accordance with the
Commissioner for Public Appointments Code of Practice. All
appointments are made on merit and political activity plays no
part in the selection process. However, in accordance with the
original Nolan recommendations, there is a requirement for
appointees' political activity (if any declared) to be made
public. All appointees have confirmed that they have not engaged
in any political activity in the last five years. The only
non-executive director of Court to hold another ministerial public
appointment is Lord Turner, who is Chair of the FSA and Chair of
the Committee on Climate Change.
4. Under the Bank of England Act 1998, a person is disqualified
from being a non executive director if he or she is (a) Minister
of the Crown; (b) serving in a Government department in employment
of which remuneration is payable out of money provided by
Parliament; and (c) a servant of the Bank of England.
5. The non-executive directors are to receive remuneration of
£15,000 a year. Non-executive directors that also chair a
sub-committee of Court will receive remuneration of £20,000 a
year. The Chair of Court receives a remuneration of £30,000. In
addition, all non-executive directors receive payments to cover
expenses. The average time commitment required of a non-executive
director of Court is estimated to be 2-3 days per month (5 days
for the Chair) but this may vary.
6. The appointment of the Chair of the Financial Services
Authority, currently Lord Turner, to the Court of the Bank of
England, is ex officio and mirrors the appointment of the Deputy
Governor for Financial Stability to the Board of the FSA. Neither
the Chair of the FSA or the Deputy Governor receives additional
remuneration for these cross-directorships.
7. The Banking Act 2009 introduced a number of reforms to the
Bank of England, including:
a. Giving the Bank of England a statutory objective to contribute
to protecting and enhancing the stability of the financial systems
of the United Kingdom;
b. Changing the governance structure of the Bank of England to
support these new responsibilities, including the creation of a
new Financial Stability Committee; and
c. Modernising the operations of Court, including by reducing its
maximum size from 19 down to 12 members (of whom a majority must
be non-executive), formalising the current arrangements whereby a
non-executive director chairs the Court of the Bank of England and
to change the minimum number of meetings of Court (to 7 in each
calendar year).
8. The Banking Act 2009 provides the option of appointing one or
more members of the Court as deputies to the Chair but none have
been appointed at this time.
9. The Banking Act 2009 amends the Bank of England Act 1998 to
introduce a new Financial Stability Committee, as a sub-committee
of Court. The membership of the committee includes the Governor of
the Bank, who shall chair the Committee, the Deputy Governors of
the Bank, and 4 directors of the Bank, who are appointed by the
Chair of Court.
10. The functions of the new Financial Stability Committee are
defined in the Bank of England Act 1998, as amended by the Banking
Act 2009. They are:
a. To make recommendations to the court of directors, which they
shall consider, about the nature and implementation of the
Bank's strategy in relation to the Financial Stability Objective,
b. To give advice about whether and how the Bank should act in
respect of an institution, where the issue appears to the
Committee to be relevant to the Financial Stability Objective,
c. In particular, to give advice about whether and how the Bank
should use stabilisation powers under Part 1 of the Banking Act
2009 in particular cases,
d. To monitor the Bank's use of the stabilisation powers,
e. To monitor the Bank's exercise of its functions under
Part 5 of the Banking Act 2009 (inter-bank payment systems), and
f. Any other functions delegated to the Committee by the court of
directors for the purpose of pursuing the Financial Stability Objective.
11. Brendan Paul Barber is General Secretary of the Trade Union
Congress (2003-) and a non-executive director of the Court of the
Bank of England (2003-). He has held various roles within the TUC
since he joined in 1975.
12. Roger Martyn Carr is chair of Centrica plc (2004-) and
Cadbury Schweppes plc (2008-). He has also been a non-executive
director of the Court of the Bank of England since 2007. He has
been a non-executive director of Centrica since 2004. He was also
the senior non-executive director (2000-2003) and deputy chair
(2003-2008) of Cadbury Schweppes. He has also previously held a
number of non-executive and executive roles with Mitchells and
Butlers plc, Six Continents plc, Chubb plc, Thames Water plc and
Williams plc.
13. Antonio Horta-Osorio is Chief Executive of Abbey National plc
(2006-), and prior to this was a Non-Executive Director
(2004-2006). He is also Executive Vice President and member of the
Management Committee of Grupo Santander (2000-). He is the
Non-Executive Chairman of Banco Santander Totta in Portugal
(2006-) where he was Chief Executive Officer (CEO) until 2006. He
was previously Chief Executive and then Chair of Banco Santander
Brasil (1996-2000). In 1993, he joined Grupo Santander as CEO of
Banco Santander de Negocios Portugal, having previously worked for
Goldman Sachs.
14. Susan Ilene Rice C.B.E. is chairman and chief executive of
Lloyds TSB Scotland plc (since 2008 and 2000 respectively) and
managing director of Lloyds Banking Group Scotland (2009-). She is
a member of the Court of the Bank of England (2007-). She is also
senior independent director at Scottish and Southern Energy
(2003-), director of Scotland's Futures' Forum, the
Treasury's Financial Inclusion Taskforce and Scottish
Business in the Community among other roles. Previously she has
held a variety of executive roles with Bank of Scotland and
NatWest, Bancorp, and a range of non-executive roles.
15. Mark Edward Tucker is currently group chief executive of
Prudential plc (2005-) but has announced he will step down in
September 2009. Previous to this he was group finance director of
HBOS (2004-2005), and before that held a number of positions
within the Prudential group, including chief executive of
Prudential Corporation Asia Limited (1993-2003). He first joined
Prudential in 1985.
16. Lord Turner of Ecchinswell is the chair of the Financial
Services Authority (2008-) and is an ex officio appointment to the
Court of the Bank of England. He is also chair of the Climate
Change Committee (2008) and chair of the Overseas Development
Institute. He is a Visiting Professor at the London School of
Economics and at Cass Business School, City University. He became
a cross-bench member of the House of Lords in 2005. He has
previously been chair of the Pensions Commission (2003-2006), a
non-executive Director at Standard Chartered Bank, vice-chair of
Merrill Lynch Europe, and director general of the Confederation of
British Industry (1995-1999).
17. Harrison Hurst Young is a non-executive director of the
Commonwealth Bank of Australia (2007-), where he is chair of the
risk committee and a member of the audit committee. Harrison Young
has been chair of Morgan Stanley Australia (2003-2007) and vice
chair of Morgan Stanley Asia (1998-2003). Prior to this he spent
two years as chief executive of China International Capital
Corporation, and was a senior officer of the Federal Deposit
Insurance Corporation (1991-1994).
Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on
020 7270 4558 or by e-mail
to public.enquiries@hm-treasury.gov.uk
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