THE MAGAZINE OF THE WORSHIPFUL COMPANY OF INTERNATIONAL BANKERS The International Banker Featuring The Modern City AUTUMN 2018 INTRODUCTIONS AUTUMN 2018 The Worshipful Company Of International Bankers From the Editor We do indeed live in interesting times. Group. They show the real world we Brexit is four months away, but how live in. There’s a good selection of do you plan to continue serving EU charity and education articles and, customers when you don’t know on the internal communications with whether there will be an agreement members, a celebration of Peter Estlin and what rights you will have under it? as the first Lord Mayor of which we Subsidiarisation, back to back trades, are proud to be the Mother Company, delegation of management, using supported by articles on the City non-EU centres such as Singapore Corporation and an interview with our and reverse solicitation are common new Junior Warden. There is a lot to wonders, but nobody can decide on any read and much to enjoy. of these yet. What a mess. The Editorial Panel is choosing the The theme of this edition of the articles for the Spring edition this International Banker is ‘The Modern month, so now is the time for you to City’. It looks at a wide variety of send me your ideas for articles to go important trends such as Anne in it. Richards ‘balanced scorecard’ for asset managers, the growth of shadow banking, FinTech in insurance, Christopher Bond personal responsibility and the Dutch Editor – The International Banker Regulator’s view of the SMCR and social The Magazine of the Worshipful responsibility. There is also a fascinating Company of International Bankers interview of Donald Brydon, the Chairman of London Stock Exchange [email protected] EDITORIAL PANEL Max Asmelash Robert Merrett (Middle Warden) THE WORSHIPFUL COMPANY John Bennett (Junior Warden) Alan Ramsay OF INTERNATIONAL BANKERS Nigel Brigden Karina Robinson (Senior Warden) 12 AUSTIN FRIARS, LONDON EC2N 2HE Mark Cazaly (Deputy Editor) Alexander Rottenburg Moorad Choudhry John Ryan CLERK: NICHOLAS WESTGARTH George Littlejohn Mark Sismey-Durrant (Master) DIRECT LINE: 020 7374 0212 Michael Llewelyn-Jones (Past Master) John Thirlwell FAX: 020 7374 0207 Tim Jones Andre Villeneuve EMAIL: [email protected] Ali Miraj Brian Winterflood MBE 2 THE INTERNATIONAL BANKER / AUTUMN 2018 INTRODUCTIONS Contents The Master’s Message CHARITY AND EDUCATION My vision for the Company 04 How does the Company choose which charities to support? Tom Newman describes this important process 22 LOOKING OUTWARDS The partnership with City Brokerage A key relationship report 23 The importance of ‘Green Finance’ The recent winner of the Lombard Prize Roger Gifford explains London’s role in this key market 06 Omiros Sarikas provides a case study 24 A new approach to asset management School Home Support Anne Richards introduces environmental, social A charity describes how it uses and corporate governance factors 08 the Company’s donations 25 The future of insurance Ryan Jones looks at a transformation 10 How ‘Big Data’ may transform insurance LOOKING INWARDS George Littlejohn looks at a revolution 11 Should crypto currencies be regulated? Our Lord Mayor Guy Winterflood on a hot topic 12 Peter Estlin is Lord Mayor 26 What is the future of audit? From Freeman to Lord Mayor Richard Murphy looks ahead 13 We chart the steps to becoming Lord Mayor 27 How Credit Unions can meet societies’ needs What happens in Mansion House? Don Kehoe explains the Irish experience 14 The Editor looks behind the scenes 28 How VCTs and EISs can benefit Winning the Lord Mayor’s ESG investment golfing competition Alex Davies on a changing landscape 15 Cliff Knowlden reports on this exciting achievement 29 Members’ Forum The Associates Section How I switch off from work 16 Mark Cazaly on what they are doing 30 The Donald Brydon Interview Moorad Choudhry’s new banking book Daniel Yates on his extraordinary career 17 George Littlejohn’s review 33 Should we be concerned about The Membership Committee shadow banking? Martin Watkins on its initiatives 36 Simon Hills on this rapidly growing lending 18 A suffragist remembered Brexit from Gibraltar Catherine Smith-Mason on her Mother’s experience 37 How will it affect financial services? 19 Our new Junior Warden Senior Managers’ individual responsibility Mark Henthorne meets John Bennett 38 The view from the Dutch Regulator 20 The Clerk’s Column Brexit and Euroclearing Nicholas Westgarth on what is happening John Ryan looks at this critical infrastructure 21 in Austin Friars 39 THE WORSHIPFUL COMPANY OF INTERNATIONAL BANKERS 3 INTRODUCTIONS From the Master It gives me great pleasure to write this MEMBER EXPERIENCE article for the International Banker Magazine as the 18th Master of the On the Float, we will showcase Joining our Company and progressing Company. At a time when the future our Lord George Principles through its various stages from political landscape seems to be up Freeman to Liveryman and from in the air, it is important that some in terms of Integrity, honesty, Committee member Chair, Court institutions, such as the Livery, remain fairness, skill, expertise and Assistant, Warden and ultimately to true to their purpose and constant Master is the journey we offer to our in their operation. Who knows what diversity. members. Michael Llewelyn-Jones is geo-political landscape will face us after the Chair of the Liverymen’s Committee March 2019, but we plan to keep calm which helps us focus on progressing and carry on regardless. our members through this journey, which should be viewed as a journey for I would like to start by thanking the Alongside the float, we will have up life. This is consistent with the Livery Immediate Past Master, Peter Estlin, to 50 walkers including members and tradition – once an International Banker, for his excellent contribution to the representatives of some of the inner always so. life of our Company and his leadership London schools that we support. They over the past year. I would also like will be holding suffragette style banners One of the challenges for us is to grow to acknowledge the work undertaken promoting these principles. our membership numbers – we need on our behalf by Nicholas, our Clerk, you to help us look for future Freemen supported by Sean in the Office. They In addition to the Show, there are a of the Company. A small increase in our really do a tremendous job for us. My range of other activities that we as a numbers makes a significant impact team of Wardens, Committee Chairmen Company will participate in including on our financial position. However, we and Committee members will help me the Presentation Dinner on 22nd are not looking for growth at all costs, to ensure the Company delivers to the October for the Lord Chancellor and as this would undermine the member needs of our members and our wider other distinguished guests, the Silent experience. Martin Watkins is Chair of community and I am looking forward to Ceremony for the transition from the our Membership Committee and he will working with you all. outgoing Lord Mayor, Alderman Charles be enlisting your help with this in due Bowman to Alderman Peter Estlin course (see article in this Magazine by and the Presentation of Addresses. him later). We want our new joiners to AN INTERNATIONAL BANKER We will also continue to play our part take their oaths to be Freemen of the FOR LORD MAYOR throughout the year ahead. Company and we want our Freemen to progress to become Liverymen. We have a major involvement over I would like to thank again all those who The member experience is something the coming weeks in the installation have helped with this process. We have I want to examine carefully in my year of the 691st Lord Mayor of the City had a tremendous response from our in office. I want to ensure that we of London, when our Immediate members with contributions towards consider the experience of the various Past Master, Alderman Peter Estlin the costs. We have also received constituents of our membership takes up his role. It is a great honour sponsorship from Arbuthnot Latham and make sure we are catering for for our Company and we have great for the Presentation Dinner, Royal their needs and interests. In this confidence in his ability to discharge his Bank of Canada Capital Markets and connection, I am planning to introduce responsibilities with skill and capability. ICBC Standard Bank for the float and a Liveryman’s lunch to be held probably Barclays, who have provided support at Furniture Maker’s Hall twice a year. In terms of our preparations, we have throughout Peter’s mayoralty journey. The first such date is pencilled in for the commissioned the WCIB float to go into 18th December to co-incide with the the Lord Mayor’s Show. This will be a This is the first time we have asked Carol Service at St Mary-le-Bow. Omiros celebration of: the ingenuity and skills for help in this way and we have been Sarikas, and the Events Committee he of the City of London contributing ideas delighted by the response. chairs, will be in touch with details in globally; coupled with our connections due course. This Committee helps to around the World; and our contribution We will be looking to organize a future deliver a crucial part of our member to raising aspirations and providing event by way of saying thank you to experience with a rich array of events support for young people. everyone who has helped with this. through the year. 4 THE INTERNATIONAL BANKER / AUTUMN 2018 INTRODUCTIONS LOOKING AFTER THE COMPANY SILVER The Clerk and I attended the formal opening of the newly refurbished Woolwich Barracks Officers Mess and Beating the Retreat earlier in October.