[2025] UKUT 00185 (TCC)

When the Authority issued the Warning Notices to Mr Donaldson and Mr Arden on 17 January 2022, these stated that neither the Audit Committee nor the Board had been informed of the estimated quantum of the RWA error relating to the CLIP loans. However, the Authority later accepted Ms Gillan’s evidence that the Board was told during the October 2018 Board meeting that the current estimate was around £600m.

The Applicants’ position was thus that “the Authority now accepts that the Q3 announcement was approved by the Bank in accordance with its usual governance processes”, and that this showed that the Bank had acted reasonably.

However, the Authority’s amended position was that “the information provided to the Board and Audit Committee does not support any inference that the Bank complied with its obligations under LR 1.3.3R”, because that information “downplayed the CLIP Loan error and the adjustment to the Bank’s RWA that would be necessary to correct it”, and because the Board was only told of the £600m figure after it had already approved the Q3 Update.