[2025] UKUT 00185 (TCC)

On or around 22 October 2018, Mr Hill met with Mr Donaldson and Mr Arden to discuss what Mr Arden described in his witness evidence as “the estimated RWA correction”. His unchallenged evidence was as follows:

“I explained to Mr Hill that a potential £600m in RWAs was equal instead to ca. £40m in regulatory capital. Mr Hill then asked how much total regulatory capital we held, to which I told him it was around £1bn. Once I explained this, Mr Hill became noticeably less concerned and laughed. He told us not to use the RWA number when the most important number to the Bank was the potential impact on capital.”

Mr Donaldson’s evidence (also unchallenged) about the same meeting was that:

“[Mr Hill] did not think the potential impact on capital was particularly significant. He just told us to fix it. He also emphasised that the potential impact on capital (as opposed to the potential impact on RWAs) was the important number, and that this was what should be focussed on during meetings with the Board.”

On 22 October 2018, Ms Gillan had her monthly one-to-one meeting with Mr Bernau, during which she briefed him on her papers for the meetings of the ROC, Audit Committee and the Board, all of which were to happen the following day, and her briefing included “discussion on the RWA issue”.