External Member of the Prudential Regulation Committee of the Bank of England
|Body:||Bank of England Prudential Regulation Committee (PRC)|
|Appointing Department:||HM Treasury|
|Number of Vacancies:||1|
|Remuneration:||Total compensation is currently £108,300 p.a. This figure is reviewed annually by the Bank’s Remuneration Committee.|
|Time Requirements:||The contract is temporary and non-pensionable for the fixed term of the appointment plus a three-month period of restricted duties on expiry of the fixed term. It requires a part-time commitment of on average 26 days a quarter, though actual experience can vary considerably.|
Closed for Applications
Final Interview Date
The PRC was established as a committee of the Bank under the Bank of England Act 1998 (as amended by the Bank of England and Financial Services Act 2016).
Chaired by the Governor of the Bank, the PRC is accountable to Parliament. The PRC sets the PRA levy on the firms it regulates and adopts the budget of the PRA, with the approval of Court. It has several non-delegable responsibilities which include the PRA’s high-level strategy and policy-making functions.
The membership of the PRC comprises the Governor, the chief executive of the FCA, the four Deputy Governors, and at least six non-executive members appointed by the Chancellor. The Committee meets frequently to take decisions on rules and practice and also on firm-specific issues. In addition, it sets the PRA’s strategy and approach to supervision. The current membership of the PRC is set out in Annex A.
The Committee has a full and varied agenda and meets every three weeks for up to three hours (15 to 20 scheduled annually) to enable Committee Members to stay abreast of fast-moving topics. A typical agenda will include developing policy issues on which PRC guidance is sought; policy statements for discussion and approval; setting the supervisory strategy for one or two major firms; approval of one or more senior manager appointments at a major firm, and updates on “live issues”. Recent agendas have seen discussion of the impact of Covid-19 on bank lending, provisioning and dividends, and also on insurers; the implications of the UK’s exit from the EU on the PRA’s regulatory framework and for regulated firms themselves; and the development of challenger banks. Short-notice meetings may also be called to deal with urgent matters. Over the past year meetings have been by teleconference; in normal times meetings will be on the Bank’s premises though usually with the option of dialling in.
The terms of reference of the PRC reflect the provisions of the Bank of England Act, and also set out the extent to which its functions can be and are delegated.
In making appointments to the PRC, the Government will seek to ensure that the composition of the Committee provides an appropriate balance of different skills and backgrounds, and that it benefits from thinking and expertise in addition to that gained inside the Bank of England.
As set out in legislation, the Chancellor of the Exchequer will appoint an external member to the PRC only if he is satisfied that the person has knowledge or experience which is likely to be relevant to the Committee’s functions.
Terms of Appointment
External members of the PRC are appointed for a three-year term. There is the possibility of reappointment at the end of the term and external members can serve a maximum of two terms.
External members will be independent – they will not represent or lobby for individual groups, interests or sectors. Under the Bank of England Act 1998, a person is disqualified from being an external member of the PRC if he or she is (a) Minister of the Crown; or (b) serving in a Government department in employment in respect of which remuneration is payable out of money provided by Parliament.
External members of the PRC are appointed by the Chancellor as officer-holders at the Bank of England. The Court of the Bank sets the terms of their appointment. The contract is temporary and non-pensionable for the fixed term of the appointment plus a three-month period of restricted duties on expiry of the fixed term. It requires a part-time commitment of on average 26 days a quarter, though actual experience can vary considerably. For the period of the appointment and during the restricted duties period, PRC members are bound by the Bank’s conflicts of interest code – which covers potential conflicts on appointment as well as subsequently – and are required to abide by the Bank’s rules on personal financial transactions as well as its general code of business ethics (“Our Code”) and guidance on external communications.
Total compensation is currently £108,300 p.a. This figure is reviewed annually by the Bank’s Remuneration Committee.
External PRC members are not required to hold UK nationality.
The successful candidate will be a strategic thinker with excellent communication and influencing skills. They will have the ability to contribute across a broad range of topics and issues considered by the PRC.
The requirements for this role are as follows:
- Strong and proven financial sector knowledge and experience – candidates must have the experience necessary to make independent decisions. They must demonstrate that they have used their financial sector expertise operating at a senior level in or advising financial services organisations, in particular retail banking, wholesale banking or insurance firms.
- Decision-making skills – the PRC makes decisions that directly affect firms and people. It determines whether an individual can take a senior role at a bank, and it decides ultimately whether the conditions for resolving a failing bank are met. All members must be ready to take tough decisions and stand by them.
- Analytical ability – candidates will need to be able to absorb large volumes of complex information and reach reasoned and robust conclusions.
- Independence of thought and interpersonal skills – candidates must be independently minded and be able to exert their influence within the PRC and the Bank as a whole.
- Communication skills – although the PRC does not have the same public profile as the MPC, and there are obvious sensitivities about what can be put into the public domain, the PRA still has to communicate with firms, trade associations, ministers and the Treasury Committee of the House of Commons. External members of the Committee should expect to be called before that Committee (along with other members) to explain the PRC’s policies; and a successful candidate should expect a pre-commencement hearing.
- Undisputed integrity and standing – candidates should have no reservations about meeting the requirements of the Bank’s Code of Conduct and the Conflicts Code for the PRC. An assessment of potential conflicts and interests will be undertaken as part of the selection process.
The Bank of England and HM Treasury have strong commitments to diversity and equality of opportunity, and welcome applications from candidates irrespective of their background, gender, race, sexual orientation, religion, or age, providing they meet the required criteria. Both HM Treasury and the Bank are signatories to the Women in Finance Charter and applications from women and candidates from ethnically diverse backgrounds in particular are encouraged.
All disabled candidates (as defined by the Equality Act 2010) who satisfy the minimum criteria for the role will be guaranteed an interview with the Assessment Panel under the Disability Confident Scheme (DCS).
How to Apply
There are two stages to the application process as follows:
- Please submit the following to PRCMember@egonzehnder.com
- A comprehensive CV.
- A covering letter which explains your interest in the role and encapsulates the aspects of your experience relevant to the required criteria. Please include the names and addresses of three referees. Referees will not be approached without prior permission.
- The Disability Confident Scheme, Political Activity, and Conflict of Interest questionnaire.
- The Diversity Monitoring Form. This will assist the Bank and HM Treasury in monitoring selection decisions to assess whether equality of opportunity is being achieved. Any information collated from the Diversity Monitoring Forms will not be used as part of the selection process and will be treated as strictly confidential.
- Contact information, including telephone numbers and e-mail addresses, which will be used with discretion.
- Consent to share personal details.
If you have any queries concerning your application, or technical queries on completing the application, please email PRCMember@egonzehnder.com.
This post is NOT regulated by The Commissioner for Public Appointments.