[2025] UKUT 00185 (TCC)

The September Board meeting took place in the afternoon of the same day. Board members had been provided with various papers around five days in advance, including the Chief Risk Officer’s report, which contained the following passage:

“Standardised RWAs vs plan has exceeded appetite since March owing primarily to the reclassification of CRE assets, the review of which is still ongoing. This will remain in red until the plan is rebased to take into account the higher risk weights. This metric could increase by circa 10% (c.£40m of capital) upon completion of the asset classification project.”

The minutes do not record any discussion of this passage and we find on the balance of probabilities that it was not discussed.

Another item was the PSM letter, also circulated in advance. The minutes record that this was “noted” and that “the classification of commercial risk weights” had been discussed, with Ms Gillan explaining the background. The minutes continued by saying (where DA is Mr Arden, CD is Mr Donaldson, and the ROC is the Risk Oversight Committee).

“DA then outlined the process for remediation and confirmed that this will be brought back to ROC and Board in due course. CD explained that once fully remediated, the PRA had confirmed that they would be able to reconsider the application of Pillar 2 Offset.”

The Board then delegated oversight of the RWA issues to the ROC. The minutes also record that a new NED, Catherine Brown, was appointed with effect from 1 October 2018.