Compliance breaches at Bank of England despite reform efforts

National Audit Office checks Bank's measures to lower non-financial risks since scandals but admits 'good progress.'
National Audit Office checks Bank's measures to lower non-financial risks since scandals but admits 'good progress.'

National Audit Office checks Bank’s measures to lower non-financial risks since scandals but admits ‘good progress.’

Introduction: Unearthed Breaches Despite Progress

Despite efforts to address shortcomings following high-profile scandals, the Bank of England has faced dozens of major compliance breaches, according to a report by the National Audit Office (NAO).

High-Profile Scandals

The report reviewed the Bank’s actions following scandals such as the resignation of deputy governor Charlotte Hogg in 2017 for failing to disclose a conflict of interest, and a security breach in December 2019 that gave hedge funds early access to audio feeds of press conferences.

Unacceptable Level of Breaches

While acknowledging progress, the NAO highlighted an unacceptable level of compliance breaches within the Bank’s staff policies. Over 12 months to August 2023, there were 28 major breaches and 628 minor breaches.

Also read: Navigating rising rail fares in England: tips for getting the cheapest deals

Definition of Breaches

Major breaches included failure to disclose conflicts of interest affecting senior officials’ independence, while minor breaches involved personal transactions without advanced approval or emails sent to the wrong address.

Rising Breach Numbers

The number of breaches increased from the previous year, with 584 minor and 19 major breaches reported previously.

Staff Survey Findings

A 2023 staff survey revealed concerns, with only 59% of Bank staff feeling free to speak up without fear of negative consequences.

Assessment by NAO

The NAO’s comptroller and auditor general, Gareth Davies, noted the Bank’s progress in developing new systems to manage compliance risks but emphasized the need for further improvement.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

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