U.K. BoE Conflicts Management

On 9 August, BoE published review of approach to managing conflicts.

  • Covers NED review of Bank of England's approach to managing conflicts of interest.
  • BoE plans to designate Conflicts Officer with executive responsibility for conflicts.
  • Follows Mar. BoE statement on resignation of new deputy governor Hogg.

Conflicts Review

  • Review examined policies for identifying and managing conflicts of interest at BoE.
  • And actions to ensure timely compliance and function of reporting lines, structures.
  • Non-executive directors drew on discussions, documentation, benchmark exercise.
  • Found insufficient practical understanding of how to identify and manage conflicts.
  • Need to strengthen conflict checks prior to appointment in relevant HR processes.
  • Should be for others in BoE to decide whether individual disclosures include conflict.

Priority Area

  • Should designate single senior executive (conflicts officer) under the SMR regime.
  • Champion culture needed for effective conflict management and change processes.
  • Individual to be account to Court for progress against the review's recommendations.
  • Clarify the reporting requirements for personal relationships, improve clarify of terms.
  • Develop clear descriptions of conflicts, reinforced with internal training, engagement.
  • Strengthen conflict checks at appointment, particularly for senior post appointments.
  • Expedite process to introduce centralized, electronic system for analyzing conflicts.