From: Horsley, Steve To: Subject: FOI 20092898 Date: 08 February 2013 10:08:00

Dear

Freedom of Information Act 2000

Thank you for requesting financial information which the Council received on 29th January 2013. Your request has been considered under the Freedom of Information Act 2000.

You have requested the following information:

• For the complete suite of council financial services (transactional banking and investment), which *provider(s) does the Council currently use, and how many individual accounts are held with each listed financial services provider? (2010/11 and 2011/12 financial years).

• How frequently are the various financial services procured, and when is the existing arrangement due to end (month/ year) - for each listed provider?

• What was the average balance(s)/ cap on investment(s); of accounts held with each listed provider as at last audit? (for transactional & investment banking).

• Please provide the specific procurement criteria and weighting that the council uses to assesses and procures financial services.

• Detail if, and how, the procurement criteria, weighting, and assessment process has been reviewed and modified, to give effect to Best Value Guidance and the Public Services (Social Value) Act 2012 to maximize public socio- economic value via procurement.

My enquires can confirm :

For the complete suite of council financial services (transactional banking and investment), which *provider(s) does the Council currently use, and how many individual accounts are held with each listed financial services provider? (2010/11 and 2011/12 financial years).

Transactional Banking

The Council operates 5 accounts with HSBC and 3 accounts with Santander – applicable for both years in question.

Investments

Investment criteria varies throughout the year dependent on the individual credit rating of the institution.

For 2010/2011 37 number of different institutions were used of which 31 were local authorities (Peer-to Peer lenders) HSBC BANK

BARCLAYS BANK PLC

ROYAL BANK OF SCOTLAND

SANTANDER UK plc

NATIONWIDE B/SOCIETY

DEBT MANAGEMENT ACCOUNT

BIRMINGHAM CITY COUNCIL

BOURNEMOUTH BOROUGH COUNCIL

LONDON BOROUGH OF BRENT

BRISTOL CITY COUNCIL

CALDERDALE COUNCIL

CHELTENHAM BOROUGH COUNCIL

EAST DUNBARTONSHIRE

EASTLEIGH BOROUGH COUNCIL

GLASGOW CITY COUNCIL

HINCKLEY & BOSWORTH

LANCASHIRE COUNTY COUNCIL

MERSEYSIDE POLICE

LEEDS CITY COUNCIL

MERTHYR TYDFIL COUNTY COUNCIL

NEWPORT CITY COUNCIL

NORTHAMPTONSHIRE

NOTTINGHAM CITY COUNCIL

PLYMOUTH CITY COUNCIL

READING BOROUGH COUNCIL

REIGATE & BANSTEAD

SALFORD CITY COUNCIL

SHEFFIELD CITY COUNCIL

SOUTH AYRSHIRE COUNCIL

SOUTH LANARKSHIRE COUNCIL

SOUTHAMPTON CITY COUNCIL

STOCKPORT MBC

THURROCK BOROUGH COUNCIL

WEST BERKSHIRE

WEST MIDLANDS INTEGRATED TRANSPORT AUTHORITY

WEST YORKSHIRE FIRE & RESCUE

WEST YORKSHIRE POLICE

For 2011/2012 38 number of different institutions were used of which 32 were local authorities (Peer-to Peer lenders)

HSBC BANK

BARCLAYS BANK PLC

ROYAL BANK OF SCOTLAND

SANTANDER UK plc

NATIONWIDE B/SOCIETY

DEBT MANAGEMENT ACCOUNT

BIRMINGHAM CITY COUNCIL

BLAENAU GWENT COUNTY BC

BOURNEMOUTH BOROUGH COUNCIL

BRIDGEND COUNTY COUNCIL

BRISTOL CITY COUNCIL

CALDERDALE METROPOLOTAN COUNCIL

CHESTERFIELD BOROUGH COUNCIL

GREATER LONDON AUTHORITY

HALTON BOROUGH COUNCIL

HARTLEPOOL BC

HERTFORDSHIRE

HINCKLEY & BOSWORTH

HUNTINGDONSHIRE

LANCASHIRE COUNTY COUNCIL

LEEDS CITY COUNCIL

LONDON BOROUGH OF NEWHAM

LONDON BOROUGH OF WALTHAM

MAYOR'S OFFICE METROPOLITAN POLICE

NEATH and PORT TALBOT CBC

NEWPORT CITY COUNCIL

NORTH LANARKSHIRE COUNCIL

NORTHAMPTONSHIRE CC

NOTTINGHAM CITY COUNCIL

NOTTINGHAMSHIRE POLICE

PLYMOUTH CITY COUNCIL

SALFORD CITY COUNCIL

STOCKPORT MBC

TELFORD and WREKIN

THURROCK BOROUGH COUNCIL

TORFAEN COUNTY COUNCIL

WEST LOTHIAN COUNCIL

WEST YORKSHIRE FIRE & RESCUE

How frequently are the various financial services procured, and when is the existing arrangement due to end (month/ year) - for each listed provider?

Transactional banking arrangements are reviewed every 5 years. Existing arrangement due to end March 2014

Investment arrangements are reviewed daily on the basis of credit ratings, availability of counterparties for investment and available investment limit capacity.

What was the average balance(s)/ cap on investment(s); of accounts held with each listed provider as at last audit? (for transactional & investment banking).

Cap on investments is limited to £10m per institution. Balances at last audit 31/3/2012 SANTANDER UK PLC 6,000,000.00 ROYAL BANK OF SCOTLAND 6,000,000.00 THURROCK BOROUGH COUNCIL 4,750,000.00 LEEDS CITY COUNCIL 3,000,000.00 HSBC BANK PLC 5,400,000.00 BLAENAU GWENT COUNTY B.C 3,000,000.00 NEWPORT CITY COUNCIL 2,500,000.00 NEATH and PORT TALBOT CBC 3,500,000.00 HUNTINGDONSHIRE 2,000,000.00 LEEDS CITY COUNCIL 5,000,000.00

INVESTEC LIQUIDITY PLUS FUND 900,930.21

INVESTEC LIQUIDITY SHORT DATED FUND 6,307,673.17

IINESTEC TARGET FUND 1,830,081.95

PAYDEN STERLING RESERVE FUND 5,019,556.07

Please provide the specific procurement criteria and weighting that the council uses to assesses and procures financial services.

Transactional Banking is based on 60% quantitative, 40% qualitative (comprising 30% service deliver, 10% management arrangements)

Must be authorised and regulated by the Financial Services Authority , subscribe to the Banking Code, be a member of the Financial Ombudsman Service and be licensed by the Office of Fair Trading

Investments

· Dependent on Credit Rating of the institution · Credit Default Swaps (an indicator of risk based on the cost of insuring against non payment); · Sovereign support mechanisms; · Share prices; · Corporate developments; · Financial media reviews and commentaries.

Detail if, and how, the procurement criteria, weighting, and assessment process has been reviewed and modified, to give effect to Best Value Guidance and the Public Services (Social Value) Act 2012 to maximize public socio-economic value via procurement.

Prospective tenderers for transactional banking will be taken from the Eastern Shires Purchasing Organisation (ESPO) framework contract. As such, I believe the Public Services (Social Value) Act 2012 does not apply. Also, tenderers must be authorised and regulated by the Financial Services Authority and be capable of providing a service so this limits the number of organisations that can tender. It is expected that the Co-operative Bank will be part of the framework contract.

Investment opportunities are not procured they are governed by our Treasury Management Strategy which incorporates the points detailed in the question above.

Please note that most of the information that you request is owned by the City Council and subject to copyright protection. Under the Re-Use of Public Sector Information 2005 Regulations you are free to use this information for your own use or for the purposes of news reporting. However, any other type of re-use under the Regulations, for example; publication of the information or circulation to the public, will require permission of the copyright owner and may be subject to terms and conditions. For documents where the copyright does not belong to you will need to apply separately to the copyright holder.

If you wish to apply to reuse the information you have requested or have any other issues relating to this request please do not hesitate to contact me.

I hope you feel that our response meets your request. However you have a right to make representations about the outcome or handling of your request – in the first instance this must be made in writing within 40 working days of the date of this letter, to the Council's Information Governance Team at:

Information Governance Team, Coventry City Council Room 21a, Lower Ground Floor, Council House, Earl Street Coventry. CV1 5RR [email protected]

If you are still dissatisfied with the outcome of the complaint and/or appeal under the Freedom of Information Act 2000, you have the right to apply directly to the Information Commissioner for a decision. The Information Commissioner can be contacted at:

Information Commissioner’s Office Wycliffe House Water Lane Wilmslow Cheshire SK9 5AF

Yours sincerely

Steve

Steve Horsley Legal Services Manager Legal Services 4th Floor Christchurch House Greyfriars Lane Coventry CV1 2QL

Tel: 024 7683 3121 Fax: 024 7683 2527