Upper Tribunal Tax and Chancery Chamber

[2025] UKUT 00185 (TCC)

Fecha: 09-Abr-2025

The Audit Committee

The Audit Committee

461.

The Audit Committee was told in September that there were “inconsistencies” in the reporting of RWAs, and also wrongly informed that the regulatory position was “ambiguous”. In October, the Committee was provided with:

(1)

the text of Ms Roberts’s email about the meeting with Mr Lane, this incorrectly stated that there were “regulatory interpretation issues” about the classification; that the £600m was based on sampling and that there was “ongoing dialogue” with the PRA about this “potential issue”; and

(2)

the “Q3 Update on accounting, reporting and control matters” which said there were “no significant accounting or reporting matters to bring to the Committee’s attention”; that work to review the calculations of RWAs would take the rest of the year, and the Committee would be “updated on any corrections required” albeit that “the impact of incorrect reporting on the balance sheet was not insignificant”.

462.

Thus, although the Committee was told that the estimate was £600m, they were also told that this was based on sampling; that there were regulatory uncertainties and that the quantum would not be known until the end of the year. The first two of those statements was incorrect, and although it is true that further work was continuing on the quantum, there was no doubt at the time of the October meeting that it was of the order of £574m because further adjustments to calculations were “not expected to be material”.