[2025] UKUT 00185 (TCC)

Mr Stanley said it was plain that the Bank and the Applicants knew that risk-weighting the CLIP loans at 50% instead of 100% was incorrect, and they also knew at the time of the Q3 Update that correcting that error would materially change the RWA figure.

He relied on the paper provided to the CRPAC in September 2018; on the passages from the RWA Report set out above; on Ms Gillan’s confirmation that she had understood that corrections of the order of £570m were likely to be required for CLIP loans, and that any further adjustments were not expected to be material, see §202 and §208.

Although Mr Stanley accepted that there was some uncertainty at the margin, he said that at the time of the Q3 Update, the Bank knew that the RWA figure of £7,398m had been materially misstated, because it included a figure for CLIP loans which was too low by over £500m. He also disagreed with all the reasons put forward by the Applicants as to why they did not have that knowledge. We set out his specific submissions under the relevant headings below.