DOCSLIB.ORG

UK Government Investments Limited Annual Report and Accounts 2017-18

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
UK Government Investments Limited Annual Report and Accounts 2017-18 UK Government Investments Limited Annual Report and Accounts 2017-18 UK Government Investments Limited Annual Report and Accounts 2017-18 Presented to Parliament by the Economic Secretary to the Treasury by Command of Her Majesty July 2018 Company No. 09774296 Cm 9646 © Crown copyright 2018 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.ukgi.org.uk Any enquiries regarding this publication should be sent to us at [email protected] ISBN 978-1-5286-0449-9 CCS0518708872 07/18 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office CONTENTS Contents UKGI 6 Chairman’s statement 9 Chief Executive’s review 11 Strategic Report 13 Directors’ Report and Governance Statement 30 – The UKGI Board 36 – Audit & Risk Committee Report 38 – Remuneration Committee Report 40 – Statement of Directors’ and Accounting Officer’s responsibilities in respect of the Directors’ Report and the Financial Statements 47 Independent Auditor’s Report to the Member of UK Government Investments Limited 48 Financial Statements of UK Government Investments Limited 51 ANNUAL REPORT 2017-2018 5 UKGI UKGI UKGI is unique. We bring a private sector perspective to public asset stewardship, transactions and corporate situations in the national interest that is not otherwise readily available inside government. Our people are skilled, experienced professionals drawn from the best of the private sector and the civil service. Together, we work on some of the most complex and demanding tasks across government – promoting good governance of publicly owned businesses, supporting government’s private sector interventions and delivering orderly transactions that generate value for money. As the boundary between the public and private sectors is increasingly in focus, we provide the clarity of advice and solutions that inform and translate government’s policy decisions into effective outcomes. MANAGEMENT OF £4bn £4bn RAISED IN ASSET 23 SALES ACROSS 2017/18 PORTFOLIO ENTITIES WORKING WITH 100 12 EXPERTS WHITEHALL IN FINANCE AND DEPARTMENTS GOVERNMENT 6 ANNUAL REPORT 2017-2018 UKGI 2018 - UK Government Investments: UKGI/UKFI JOINTLY: the UK government’s centre of excellence for • Have generated proceeds of £70bn for corporate finance and governance the Exchequer • Hold a portfolio of 25 businesses owned by the taxpayer • Provide support to 12 Whitehall departments Merger of UK Government First sale of Investments and 2018 income contingent 2018 UK Financial repayment student lnvestments loans for £1.7bn Final government 2017 2017 shares in Lloyds Sale of Green sold – total UK Government Investment Bank proceeds £21.2bn Investments 2016 for £2.3bn UKAR sale of 2016 established as a assets for £13bn subsidiary of HM Treasury 2015 2015 Sale of 5.4% of Sale of HMG’s RBS for £2.1bn interest in Eurostar 2014 for £0.7bn 2014 IPO of Royal Mail plc raises £2bn of 2013 Sale of mortgage 2013 First sale of proceeds style student loans shares in Lloyds 2012 British Business 2012 Bank established Sale of Northern Establishment Separation of 2011 Rock to Virgin 2011 of Green Post Office and Money for £0.7bn Royal Mail Investment Bank Responsibility 2010 2010 for Bradford and Bingley and Acquisition of Northern Rock 2009 Acquisition of Lloyds 2009 transferred from Northern Rock ShEx Creation of Sale of shares in 2008 Sale of British 2008 UK Financial QinetiQ for £0.7bn Energy for £4.4bn Acquisition of Investments RBS 2007 2007 Sale of 2006 2006 Westinghouse for £4bn 2005 2005 2004 2004 2003 Creation of the 2003 Shareholder Executive SHAREHOLDER UKFI EXECUTIVE ANNUAL REPORT 2017-2018 7 UKGI UKFI UK Financial Investments Limited (UKFI) was created provide complementary skillsets and the synergies in November 2008 as part of the UK’s response to the between the two will facilitate the government’s aim of financial crisis. raising the efficiency and performance of large publicly- owned delivery bodies and assets. Until the end of March 2018, UKFI was responsible for managing the government’s shareholdings in The Royal The operations and staff of UKFI transferred to UKGI Bank of Scotland Group (RBS) and Lloyds Banking and became the new ‘Financial Institutions Group’ Group (Lloyds) and for managing the government’s (FIG). At the same time, responsibility for the execution 100 per cent shareholding in and loans to UK Asset of UKFI’s investment mandate (which provided the Resolution Ltd (UKAR). UKAR was formed in October framework by which UKFI developed and executed 2010 to integrate the activities of NRAM (previously its investment and management strategy) transferred known as Northern Rock (Asset Management) plc) and to UKGI. HM Treasury and UKGI have entered into a Bradford & Bingley plc. memorandum of understanding (“MoU”) in relation to the management by UKGI of the government’s interest UKFI’s overarching objective was to manage these in Royal Bank of Scotland and UK Asset Resolution shareholdings commercially to create and protect value (“UKAR”). This MoU took effect on the date of transfer for the taxpayer as shareholder and to devise and and is available on the UKGI website. execute a strategy for realising value for the government’s ownership stakes in an orderly and active way over time A new sub-committee of the UKGI Board has been within the context of protecting and creating value for established, the “Transactions Committee”, with a the taxpayer as shareholder, paying due regard to the specific focus on the FIG mandate, and the Committee maintenance of financial stability and acting in a way includes some members of the former UKFI Board to that promotes competition. ensure continuity. UKFI successfully delivered against this mandate. The For details of UKFI’s performance in 2017–18, please remainder of the government’s shares in Lloyds Banking refer to the UKFI Annual Report and Accounts, available Group were sold in the early part of the year, with total on the UKGI website. proceeds realised from share sales and dividends received in relation to Lloyds of £21.2bn, which is approximately £900m more than the government paid for the shares. UK Asset Resolution (UKAR) has continued to make material progress in the reduction of its balance sheet, which at year end had been reduced to £19.8 billion, down from a peak level of over £115.8 billion. In view of the significant reduction in the size of the government’s financial sector assets under UKFI’s stewardship, UKFI ceased trading and transferred its residual assets and liabilities (operations and staff) to UKGI on 1 April 2018. UKGI provides a single source of expertise within government on corporate finance and governance issues, making it easier for government experts to work together to deliver the sale of a wide range of publicly-owned assets in a way that secures good value for money for taxpayers. UKGI and UKFI 8 ANNUAL REPORT 2017-2018 CHAIRMAN’S STATEMENT Chairman’s statement This is my second Chairman’s statement since UKGI met with the permanent was formed two years ago to combine the Shareholder secretaries of all the major Executive and, from 1 April 2018, UK Financial government departments Investments (“UKFI”). Against an uncertain backdrop which UKGI advises, as which has included the EU Referendum and a general well as with the Chairs election during that time, our focus has remained firmly of all UKGI’s portfolio on successfully ensuring that financial and market entities. Overall, their discipline is brought to asset sales, to the governance feedback on UKGI has of publicly controlled businesses and to the corporate been thoroughly positive, a testament to the skill, finance advice we provide in support of government’s dedication and leadership of Mark Russell, his senior private sector negotiations and interventions. In each management team and all the staff at UKGI. of these areas, we are committed to ensuring value for In April 2018, the mandate for the stewardship and money and the highest possible standards in everything eventual disposal of the government’s interests in the that we do. financial investments acquired during the 2008 financial Our only asset is our people. So one important focus of crisis transferred from UKFI to UKGI. We have been the Board is to ensure that we have an executive and preparing for this since UKGI was established two non-executive team with the skills and capabilities to years ago. The achievements of UKFI over the last ten match our mission, and the values to ensure we execute years should be acknowledged, indeed celebrated; that mission in the right way. It is our aim to recruit the over £50 billion of proceeds have been delivered from very best from the private and public sectors with the the sale of financial assets, including the complete authentic promise of providing extraordinarily interesting divestment by the government of its Lloyds Banking and complex work and a culture that is designed to Group shareholding. In addition, the balance sheet of the bring out the very best in all our people. legacy Northern Rock and Bradford & Bingley portfolios has wound down from £115.8bn to just £19.8bn. In A key focus of our recruitment, both from the private many cases these disposals have been executed in sector and from within Whitehall, is on the diversity ground-breaking ways. of our workforce and on promoting inclusivity. An effective diversity and inclusivity strategy promotes staff Following the transfer of UKFI to UKGI on 1 April engagement and well-being.
Load more

Recommended publications
  • Bank of Scotland
    Bank of Scotland plc (Incorporated with limited liability in Scotland with registered number SC 327000) €60 billion Covered Bond Programme unconditionally guaranteed by HBOS plc (incorporated with limited liability in Scotland with registered number SC218813) and unconditionally and irrevocably guaranteed as to payments of interest and principal by HBOS Covered Bonds LLP (a limited liability partnership incorporated in England and Wales) Under this €60 billion covered bond programme (the “Programme”), Bank of Scotland plc (the “Issuer”) may from time to time issue bonds (the “Covered Bonds”) denominated in any currency agreed between the Issuer and the relevant Dealer(s) (as defined below). The payments of all amounts due in respect of the Covered Bonds have been unconditionally guaranteed by HBOS plc (“HBOS” in its capacity as guarantor, the “HBOS Group Guarantor”). HBOS Covered Bonds LLP (the “LLP” and, together with the HBOS Group Guarantor, the “Guarantors”) has guaranteed payments of interest and principal under the Covered Bonds pursuant to a guarantee which is secured over the Portfolio (as defined below) and its other assets. Recourse against the LLP under its guarantee is limited to the Portfolio and such assets. The Covered Bonds may be issued in bearer or registered form (respectively “Bearer Covered Bonds” and “Registered Covered Bonds”). The maximum aggregate nominal amount of all Covered Bonds from time to time outstanding under the Programme will not exceed €60 billion (or its equivalent in other currencies calculated as described in the Programme Agreement described herein), subject to increase as described herein. The Covered Bonds may be issued on a continuing basis to one or more of the Dealers specified under General Description of the Programme and any additional Dealer appointed under the Programme from time to time by the Issuer (each a “Dealer” and together the “Dealers”), which appointment may be for a specific issue or on an ongoing basis.
    [Show full text]
  • 9121 Manufacturing Matters Strategy Final
    Fighting for the Future of UK Manufacturing An Industrial Strategy Published by the Unite Manufacturing Combine june 2020 RECOVER& REBUILD Manufacturing Matters 2 Unite the union MANUFACTURING MATTERS NOW MORE THEN EVER Contents Foreword Page 4 Introduction Page 6 Executive Summary Page 7 Ten Point Plan for the Future of Manufacturing Page 8 Sustainable Jobs: A Green Deal for Manufacturing Page 9 Recover, Rebuild & Transform Page 12 Learning from COVID-19: Health and Safety Page 17 Positive Public Procurement: Build Local, Buy UK Page 18 Developing Skills for the Future Page 21 Harnessing Technology and Innovation Page 23 Corporate Governance: Putting Workers First Page 26 Advancing Worker and Trade Union Rights Page 32 The Devolved Countries Page 34 Conclusion Page 37 3 Unite the union Foreword Meeting the Challenges of the Future Steve Turner, Unite Assistant General Secretary, Manufacturing Unite represents over 300,000 manufacturing workers across the economy, from automotive and aerospace to chemicals, pharmaceuticals, steel, packaging and general engineering. As a result, I have seen first-hand the collective talent, experience and industrial knowledge our members bring to the negotiating table with both employers and government. I am incredibly proud of our fantastic army of officers, shop stewards and activists who tirelessly build the powerful, confident union organisation we need at work while taking our demands for investment in research and development, new technologies and future product beyond the workplace to corporate decision makers. This skill, experience and dedication has been put to the test in a way that none of us could have foreseen in recent times with the outbreak of the global coronavirus pandemic.
    [Show full text]
  • The Future of Banking Commission
    The Future of BankingThe Future Commissionof Banking Commission 2 Commissioners RT HON DAVID DAVIS MP (CHAIR) David is chairing the Future of Banking Commission. He is Conservative MP for Haltemprice and Howden and is a leading campaigner on civil liberties. His former roles include Shadow Home Secretary, Conservative Party Chairman and Chairman of the Public Accounts Committee. RT HON JOHN MCFALL From 2001-10, when he retired as Labour MP for West Dunbartonshire, John McFall was Chair of the influential House of Common’s Treasury Committee. In January, he was presented with the award of Which? Consumer Champion for 2009 for his role in improving financial services for consumers. RT HON DR VINCE CABLE MP It was in his capacity as the Liberal Democrat Shadow Chancellor of the Exchequer that Vince served on the Commission. In May 2010 Vince was appointed Secretary of State for Business Innovation and Skills. PETER VICARY-SMITH Peter is the Chief Executive of Which?, the UK’s largest consumer body. Peter’s experience has been gained in both the charity and commercial sectors. He took up his appointment at Which? in August 2004. PHILIP AUGAR Philip is formerly a Group Managing Director at Schroders’ and now a writer on the financial services industry. He is the author of The‘ Death of Gentlemanly Capitalism: The Rise and Fall of London’s Investment Banks’. CLARE SPOTTISWOODE Clare is currently the Chair of Gas Strategies Limited. Her career started as an economist with the Treasury before establishing her own software company. Clare is perhaps best known for her role as Director General of Ofgas between 1993 and 1998.
    [Show full text]
  • Ukfi Framework Document April 2016
    UK Financial Investments Ltd UKFI FRAMEWORK DOCUMENT APRIL 2016 UK FINANCIAL INVESTMENTS LIMITED: SHAREHOLDER RELATIONSHIP FRAMEWORK DOCUMENT REVISED VERSION 5 May 2016 1. INTRODUCTION 1.1 This framework document (the “Framework Document”) has been drawn up by UK Financial Investments Limited (the “Company”), with its shareholder UK Government Investments Limited (“UKGI”), and HM Treasury as shareholder of the UKGI Group. It sets out the objectives for the Company and the framework within which the Company will pursue them. 1.2 HM Treasury will place copies of this document in the Libraries of both Houses of Parliament and the Company will make it available to members of the public on its website. 2. BACKGROUND 2.1 On 1 April 2016, HM Treasury’s entire shareholding of the Company was transferred to UKGI. The Company is now a wholly-owned subsidiary of UKGI. By virtue of UKGI being wholly owned by HM Treasury, the ultimate shareholder is still HM Treasury. 2.2 UKGI together with the Company (and any other subsidiaries as may exist) form the UKGI Group (“the Group”) wholly-owned by HM Treasury. UKGI operates under a framework document agreed with HM Treasury. This document should be read in the context of the wider framework. 2.3 While this Framework Document remains in place, matters described in this Framework Document will remain the responsibility of the Board of directors of the Company (“the Board”) and will not be subject to further amendment or veto from the UKGI Board. 2.4 This Framework Document refers only to the Company and does not, unless explicitly stated otherwise, include UKGI or the Group.
    [Show full text]
  • Summary of Government Interventions United Kingdom
    21 April 2009 Summary of Government Interventions United Kingdom Overview Beginning in April 2008 and accelerating from there on, the UK began taking numerous and substantial actions in order to combat the economic downturn. Amongst the most important measures enacted by the UK are: • Bank Recapitalisations; • Credit Guarantee Scheme; • Bank of England Liquidity Provisions; • Guarantee Scheme for Asset-Backed Securities; • Bank of England Asset Purchase Facility, and • Asset Protection Scheme. In addition to the above measures, the UK has enacted several other significant measures that will also be discussed below. Investments/recapitalisation Bank Recapitalisation Scheme On 8 October 2008, the UK announced several significant measures (the “Initial Stability Measures”) to provide financial stability to the economy by ensuring that banks and building societies in the UK had sufficient access to (i) short-term liquidity, (ii) new capital and (iii) funds for medium-term lending. Of the Initial Stability Measures, the UK’s scheme (the “Bank Recapitalisation Scheme”) to help banks increase the level of their tier 1 capital above the regulatory requirements was arguably the most significant. Under the Bank Recapitalisation Scheme, the UK sought and obtained the commited participation of many of the largest UK banks and building societies (specifcally, Abbey, Barclays, HBOS, HSBC Bank, Lloyds TSB, Nationwide Building Society, RBS and Standard Chartered), however the scheme is available to any “eligible insitution” (which are UK incorporated banks (including UK subsidiaries of foreign institutions) that have substantial business in the UK and building societies). The participating institutions agreed that they would increase their aggregate tier 1 capital by GBP 25bn.
    [Show full text]
  • Maintaining the Financial Stability of UK Banks: Update on the Support Schemes Our Vision Is to Help the Nation Spend Wisely
    REPOrt BY THE COMPTROLLER AND AUDITOR GENERAL HC 676 SESSION 2010–2011 15 DECEMBER 2010 HM Treasury Maintaining the financial stability of UK banks: update on the support schemes Our vision is to help the nation spend wisely. We apply the unique perspective of public audit to help Parliament and government drive lasting improvement in public services. The National Audit Office scrutinises public spending on behalf of Parliament. The Comptroller and Auditor General, Amyas Morse, is an Officer of the House of Commons. He is the head of the National Audit Office which employs some 900 staff. He and the National Audit Office are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources. Our work leads to savings and other efficiency gains worth many millions of pounds: £890 million in 2009-10. HM Treasury Maintaining the financial stability of UK banks: update on the support schemes Ordered by the House of Commons This report has been to be printed on 14 December 2010 prepared under Section 6 of the National Audit Act Report by the Comptroller and Auditor General 1983 for presentation to HC 676 Session 2010–2011 the House of Commons 15 December 2010 in accordance with Section 9 of the Act. London: The Stationery Office £14.75 Amyas Morse Comptroller and Auditor General National Audit Office 13 December 2010 Our December 2009 report Maintaining financial stability across the United Kingdom’s banking system provided a summary of the actions the Treasury took to support the UK banks through the financial crisis.
    [Show full text]
  • The City of London Investment Trust
    The City of London Investment Trust plc Registered as an investment company in England and Wales Registration Number: 34871 Registered Office: 201 Bishopsgate, London EC2M 3AE THE CITY OF ISIN number/SEDOL: Ordinary Shares: GB0001990497/0199049 London Stock Exchange (TIDM) Code: CTY New Zealand Stock Exchange Code: TCL Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826 Legal Entity Identifier (LEI): 213800F3NOTF47H6AO55 LONDON Telephone: 0800 832 832 Email: [email protected] www.cityinvestmenttrust.com INVESTMENT TRUST PLC The City of London Investment Trust plc – Annual Report for the year ended 30 June Annual Report 2019 2 0 1 9 Shareholder Communication Awards 2018 WINNER This report is printed on revive 50:50 Silk, a recycled paper containing 50% recycled waste and 50% virgin fibre and manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free process. (ECF). This product is made of material from well-managed FSC®–certified forests, recycled materials, JHI9224/2019 and other controlled sources. Typeset by 2112 Communications, London. Printed by DG3 Leycol, London. JHI9224/2019 The City of London Investment Trust plc Annual Report 2019 The City of London Investment Trust plc Annual Report 2019 Contents A Brief History Strategic Report Financial Statements The Company was formed as City of London Brewery Company The name of the Company was changed to The City of London Limited in 1860 to acquire Calverts, a family brewing business at Investment Trust plc in October 1997. Performance Highlights 2-3 Independent Auditors’ Report 36-41 Upper Thames Street in the City of London.
    [Show full text]
  • Annual Report / Shareholder Update
    ANNUAL REPORT AND ACCOUNTS 2010 CREATING THE UK’S BEST FINANCIAL SERVICES PROVIDER Lloyds Banking Group Annual Report and Accounts 2010 View this report online CONTENTS A full version of our Annual Report and Accounts and information relating to Overview Lloyds Banking Group is available at: Group profile 1 www.lloydsbankinggroup.com Group structure 2 Group performance 3 Strategy and progress 4 Chairman’s statement 6 Group Chief Executive’s review 8 Addressing the key issues 10 Marketplace trends 12 Business review 13 Summary of Group results 14 Divisional results 26 Other financial information 52 Five year financial summary 56 Our people 57 Corporate responsibility 60 Risk management 65 Governance 109 Board of Directors 110 Directors’ report 112 Corporate governance report 114 Directors’ remuneration report 124 FORWARD LOOKING STATEMENTS This annual report includes certain forward looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the business, strategy and plans of Lloyds Banking Group and its current goals and expectations relating to Financial statements 143 its future financial condition and performance. Statements that are not historical facts, including statements about Lloyds Banking Group or its directors’ and/or management’s beliefs and expectations, are forward looking statements. Words such as ‘believes’, Report of the independent auditors ‘anticipates’, ‘estimates’, ‘expects’, ‘intends’, ‘aims’, ‘potential’, ’will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘estimate’ and variations of on the consolidated financial statements 144 these words and similar future or conditional expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements.
    [Show full text]
  • Uk Financial Investments Limited (Ukfi) Ukfi Strategy: Market Investments and Annual Report and Accounts 2008/09
    xx UK Financial Investments Ltd UK FINANCIAL INVESTMENTS LIMITED (UKFI) UKFI STRATEGY: MARKET INVESTMENTS AND ANNUAL REPORT AND ACCOUNTS 2008/09 1 UKFI manages the Government’s investments in the Royal Bank of Scotland and Lloyds Banking Group. The Government currently holds 39,645 million ordinary shares in the Royal Bank of Scotland, equivalent to 70 percent of voting share capital. The value of this investment on 30 June was £15.3 billion. In connection with the Asset Protection Scheme, the Government shareholding is due to increase by up to an additional 51,000 million non-voting B shares. The Government currently holds 11,799 million ordinary shares in the Lloyds Banking Group, equivalent to 43 percent of voting share capital. The value of this investment on 30 June was £8.3 billion. In connection with the Asset Protection Scheme, the Government shareholding is due to increase by an additional 37,143 million non-voting B shares. RBS share price performance HM Treasury ordinary Number Share Price (p) shareholdings in Royal In price Value as at of ordinary In price 80 Bank of Scotland per share 30/06/2009 shares (excluding B shares)1 70 m £m p £m 60 Initial recapitalisation 22,854 14,969 65.5 8,831 50 Preference shares 16,791 5,058 31.75 6,488 40 conversion2 30 50.5 TOTAL 39,645 20,027 (avg) 15,319 20 10 Notes 1 UKFI will manage the B shares on completion of APS. See Box 2.5 for 0 further details on the B shares.
    [Show full text]
  • Review of HM Treasury's Response to the Financial Crisis 2007-09
    Review of HM Treasury’s management response to the financial crisis March 2012 Review of HM Treasury’s management response to the financial crisis March 2012 Official versions of this document are printed on 100% recycled paper. When you have finished with it please recycle it again. If using an electronic version of the document, please consider the environment and only print the pages which you need and recycle them when you have finished. © Crown copyright 2012 You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open- government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or e-mail: [email protected]. Any queries regarding this publication should be sent to us at: [email protected]. ISBN 978-1-84532-953-2 PU1286 Contents Page Foreword 3 Executive summary 5 Chapter 1 Introduction 9 Chapter 2 Financial services in HM Treasury before the crisis 15 Chapter 3 Brief history of the financial crisis (2007-09) 19 Chapter 4 Management response to the financial crisis 23 Chapter 5 Current capability on financial services 33 Chapter 6 HM Treasury’s future capability 39 Chapter 7 Organisational challenges 43 Chapter 8 Recommendations 51 Annex A Timeline of key events 55 Annex B Policy interventions 57 Annex C Organisations consulted by the Review 59 Annex D Relevant reports and publications 61 Annex E List of acronyms 63 1 Foreword The financial crisis of 2007 to 2009 was arguably the most difficult set of economic circumstances that the Treasury has faced in its history.
    [Show full text]
  • Session 2: the UK Case
    Session 2: the UK case 5th DICJ Roundtable 3/4 March 2010 Introduction • Explanation of factual background to UK authorities’ intervention in banking sector • Overview of principal players involved in working with the (part-)nationalised banks. Banks with Government shareholdings • Royal Bank of Scotland • Lloyds Banking Group • Northern Rock • Bradford & Bingley Banks subject to other intervention • Heritable • Kaupthing, Singer & Friedlander (KS&F) • Landsbanki ‘Icesave’ • London Scottish Bank • Dunfermline Building Society The tools used (1) • Recapitalisation • Asset Protection Scheme (APS) • Credit Guarantee Scheme (CGS) • Asset Backed Securities Guarantee Scheme • Special Liquidity Scheme (SLS) • Asset Purchase Facility (APF) The tools used (2) • Special Resolution Regime (SRR): – Private sector purchaser tool – Bridge bank tool – Bank Insolvency Procedure – Temporary Public Ownership tool The institutional structure • FSA: – Ongoing supervision – „Triggering‟ SRR • Bank of England: – Operating the SRR – Special Liquidity Scheme – Asset Purchase Facility The institutional structure (1) • UK Financial Investments (UKFI) – Wholly owned by the Government – Manages Government shareholdings in banks – “…to protect and create value for the taxpayer as shareholder with due regard to the maintenance of financial stability and to act in a way that promotes competition” The institutional structure (2) • Asset Protection Agency – An Executive Agency of the Treasury – Operates the Asset Protection Scheme on behalf of the Treasury. – Monitoring
    [Show full text]
  • Maintaining the Financial Stability of UK Banks: Update on the Support Schemes
    HM Treasury Maintaining the financial stability of UK banks: update on the support schemes Appendices Two to Four DECEMBER 2010 Contents Appendix Two The Treasury’s progress against our previous recommendations 3 Appendix Three Current financial stability regulatory reform 9 Appendix Four Progress towards compliance with EC State Aid Agreements 11 Design and Production by NAO Communications DP Ref: 009496-002 Maintaining the financial stability of UK banks: update on the support schemes 3 Appendix Two The Treasury’s progress against our previous recommendations Report Recommendations Progress Learning lessons from the crisis NAO The Treasury, working with the Financial The Treasury believes that it is currently too Services Authority and the Bank of England, early for such an exercise, as a key part of should evaluate the success of the support success is a period of continued financial measures provided. stability. It agrees that there will be lessons to be learned for future policy makers Maintaining Financial Stability and that it is good practice to conduct (HC 91 2009-10) a formal assessment of the success of these measures. PAC The Treasury and UK Financial Investments The Treasury agrees that careful judgement should take on board lessons learned from will be required when selling taxpayers’ past reports on privatisations and other asset interest in the banks. UK Financial sales when selling taxpayers’ interests in Investments is considering a range of the banks. relevant UK and international precedent transactions, both public and private sector, Maintaining Financial Stability to inform its disposal strategy. The NAO has (HC 190 2009-10) shared generic lessons from its previous audits of privatisations with the Treasury and UK Financial Investments.
    [Show full text]