Senior Managers Regime

The Senior Managers Regime seeks to ensure that financial institutions adhere to exemplary standards of governance and accountability.

Published on 17 December 2024

Foreword

At the Bank of England, we believe that it is essential that we hold ourselves to the same high standards that we demand of our regulated firms. The Senior Managers Regime (SMR) seeks to ensure that financial institutions adhere to exemplary standards of governance and accountability. Although the Bank is not legally required to adhere to the SMR, this document sets out how we apply the core principles of the SMR to the Bank’s leadership team and our work.

At the core of the SMR is the belief that companies should be led by skilled, principled colleagues, that there is absolute clarity about the responsibilities of the senior leadership team and that leaders of a business are held to account for its failures as well as its successes. The SMR therefore requires all qualifying firms to lay out clearly how they are managed and governed, and to map core responsibilities of their leadership team to designated Senior Managers (a ‘Responsibilities Map’). It also requires that all Senior Managers provide a ‘Statement of Responsibilities’ which sets out the nature of their Prescribed Responsibilities, and details of how these will be performed or discharged.

In line with these requirements for our regulated firms, the Bank publishes its own Responsibilities Map, alongside Statements of Responsibilities for our designated Senior Managers. Those in the Bank to whom we have applied this framework based on the SMR are the Bank’s Governor and Deputy Governors, its Chief Operating Officer, other senior executives with specific, clearly identifiable, responsibilities and certain Non-Executive Directors (NEDs) on the Court of Directors (Court).

The Statements of Responsibilities explain how day-to-day management of functions is allocated to senior executives in the Bank. Where the day-to-day management of a function is allocated to a senior executive, overall responsibility remains with the Senior Manager to whom the SMR applies.

The roles and responsibilities of Senior Managers in the Bank do not in all cases map directly to the ‘regulatory’ Senior Management Functions set out in the SMR as these were designed for commercial and regulated firms. While there are many similarities between us and our regulated firms – not least the importance of governance, accountability and best practice risk and financial management – there are also some crucial differences.

The Bank is not a commercial bank. As the central bank of the United Kingdom, we aim to maintain monetary and financial stability for the good of the people of the United Kingdom rather than make a commercial return on funds. Many of the Bank’s functions derive from statute, as do aspects of its organisational structure.

So while we have closely aligned our Prescribed Responsibilities with those we require of our regulated community, we have, where necessary, amended these to ensure that they are directly applicable to the work of the Bank.

There are also senior executives who are not included in our Statements of Responsibilities or in our Responsibilities Map. As is the case for all of the Bank’s Senior Management team, these executives still have clearly defined responsibilities, and are clear both about how these are discharged and the ways in which they will be held to account.

Included in this publication are summaries of the responsibilities of our core committees. The Bank’s functions include those which are exercised by its governing body, the Bank’s Court and its sub-committees; those delegated by Court to the Governor, many of which are then delegated onwards within the Bank; and those exercised by its four statutory committees (the Monetary Policy Committee (MPC), Financial Policy Committee (FPC), Prudential Regulation Committee (PRC) and Financial Markets and Infrastructure Committee (FMIC)).

Of the statutory committees, the PRC can make delegations and must delegate certain functions to the PRA CEO (who may make onward delegations). The FMIC can make delegations also and may permit sub-delegations. The committees have collective responsibility for many of the Bank’s core decisions. But the decisions made by committees are supported by analysis provided by different areas of the Bank for which the individual Deputy Governors have responsibility.

The Bank has also undertaken other activities to apply the core principles of the SMR to itself. These include:

induction processes to ensure that new senior executives fully understand their responsibilities;
annual assessments of the suitability of senior executives for their role through the Bank’s performance management framework; and
updates to Court on the Bank’s adherence to the core principles of the SMR.

This publication should be seen alongside the Bank’s wider mechanisms for governance and transparency, which together ensure that the Bank is accountable to the public it serves. These include:

a strong unitary board (Court), exercising control over the use of resources, risk and financial reporting;
regular testimony sessions in Parliament, before Parliamentary Committees. In particular, the Treasury Committee requires those appointed to core positions in the Bank – including Governors, the Chair of Court and external policy committee members – to attend public ‘confirmation hearings’ that assess their suitability for their roles;
the publication of annual reports and audited accounts;
regular accounts of the deliberations and decisions of our statutory committees, as well as of Court. These include the minutes of our Court meetings, the minutes of our MPC meetings, the records of our FPC meetings, the regular communications by the PRC of its supervisory policies, and an annual report from the FMIC;
publication of reports from the Bank’s Independent Evaluation Office (IEO), which supports Court in its oversight of the Bank’s performance;
a wide programme of public engagement and consultation around the country. Core to this wide programme of engagement is our agency network and our increased office presence in Leeds, which has representatives in all regions of the United Kingdom and provides a vital bridge between the business community across the country and the work of the Bank.

It is vital that the Bank is and remains open about, and accountable for, its actions. Transparency regarding the Bank’s governance arrangements, including SMR through this document, is an important part of this. It supports our mission to promote the good of the people of the United Kingdom by maintaining monetary and financial stability.

Andrew Bailey, Governor

David Roberts, Chair of Court

Allocation of Prescribed Responsibilities

Prescribed Responsibilities (PR), as adapted to the Bank		Allocation
PR A	Responsibility for applying the core principles of the SMR to the Bank.	Governor Chair of Court
PR C	Responsibility for maintaining, updating and retaining the Responsibilities Map.	Governor
PR D	Responsibility for the Bank’s policies and procedures for countering the risk that the Bank might be used to further financial crime.	Deputy Governor Markets & Banking Executive Director, Risk
PR E	Responsibility for the allocation of all Prescribed Responsibilities.	Governor Chair of Court (in relation to Chairs of Sub-Committees of Court)
PR F	Chairing Court and evaluating the performance of Court and its sub-committees. Leading the development and overseeing the implementation of the Bank’s policies and procedures for the induction, training and development of all directors.	Chair of Court
PR G	Responsibility for monitoring the effective implementation of policies and procedures for the induction, training and professional development of all persons performing senior management roles at the Bank, other than members of Court.	Chief Operating Officer
PR H	Responsibility for overseeing the adoption of the Bank’s culture in the day-to-day management of the Bank.	Governor
PR I	Responsibility for leading the development of the Bank’s culture by the Bank’s Court.	Chair of Court
PR J	Responsibility for overseeing the performance of the Internal Audit function. Safeguarding the independence of the Bank’s Internal Audit function.	Chair of ARCo
PR K	Responsibility for overseeing the performance of the Compliance function. Safeguarding the independence of the Bank’s compliance function.	Executive Director, Risk
PR L	Responsibility for overseeing the performance of the Risk function. Safeguarding the independence of the Bank’s risk function.	Executive Director, Risk
PR M	Responsibility for overseeing the development and implementation of the Bank’s remuneration policies and practices.	Chair of RemCo Chief Operating Officer
PR N	Ensuring the independence, autonomy and effectiveness of the firm’s policies and procedures on whistleblowing and ensuring staff that raise concerns are protected from detrimental treatment.	Chair of ARCo
PR O	Responsibility for the management of the Bank’s capital and the Bank’s funding and liquidity operations.	Deputy Governor Markets & Banking
PR Oa	Responsibility for the Bank’s capital and funding from a budget perspective.	Governor Chief Financial Officer
PR P	Responsibility for the Bank’s treasury management functions.	Deputy Governor Markets & Banking
PR Q	Responsibility for the production and integrity of the Bank’s financial information.	Governor Chief Financial Officer
PR R	Responsibility for the framework for financial sector continuity.	Deputy Governor Financial Stability
PR S	Responsibility for managing the Bank’s internal stress-tests	Executive Director, Risk
PR T	Responsibility for the development and maintenance of the Bank’s business model.	Governor Deputy Governor, Prudential Regulation and Chief Executive, PRA (in respect of the PRA)
PR U	Responsibility for overseeing the assessment of fitness and propriety of Non-Executive Directors.	Chair of Court The Secretary
PR V	Responsibility for the Bank’s proprietary trading activities.	Deputy Governor Markets & Banking
PR X	Responsibility for the Bank managing risks in relation to outsourcing of functions critical to its activities.	COO
PR Z	Responsibility for the protection of clients’ assets.	Deputy Governor Markets & Banking
In addition to Senior Management Function holders carrying out the Prescribed Responsibilities the Bank has two Senior Management Functions (designated under PRA and/or FCA rules) which do not have specific Prescribed Responsibilities attached to them.
SMF 13	Chairing and overseeing the performance of the Nomination Committee (NomCo).	Chair of Court
SMF 14	Performing the role of a Senior Independent Director (in line with the UK Corporate Governance Code) and leading the assessment of the Chair’s performance.	Senior Independent Director

Overall responsibilities

The Bank allocates overall responsibility for some of its business areas, activities, or management functions. By overall responsibility we mean the ultimate responsibility (under the governing body) for managing or supervising that function, and primary and direct responsibility for briefing and reporting to the governing body about that function and putting matters for decision about that function to the governing body of the firm.

Key:
SMF Roles used by the Bank
SMF 1 – Chief Executive Function
SMF 2 – Chief Finance Function
SMF 3 – Executive Director
SMF 4 – Chief Risk Function
SMF 5 – Head of Internal Audit Function
SMF 9 – Chair of the Governing Body
SMF 10 – Chair of Risk Committee
SMF 11 – Chair of Audit Committee
SMF 12 – Chair of Remuneration Committee
SMF 13 - Chair of Nominations Committee
SMF 14 – Senior Independent Director
SMF 24 – Chief Operations Function
Prescribed Responsibilities used by the Bank
A – Responsibility for applying the core principles of the SMR.
C – Responsibility for ensuring adherence to the Responsibilities Map.
D – Responsibility for the Bank’s policies and procedures for countering financial crime
E – Responsibility for the allocation of all Prescribed Responsibilities.
F – Chairing Court and evaluating the performance of Court and its sub-committees
G – Responsibility for monitoring the induction, training and professional development of all persons performing senior management roles at the Bank.
H – Responsibility for overseeing the adoption of the Bank’s culture in the day-to-day management of the Bank.
I – Responsibility for leading the development of the Bank’s culture by the Bank’s Court.
J – Overseeing the performance of the Internal Audit function. Safeguarding the independence of the Bank’s Internal Audit function.
K – Overseeing the performance of the Compliance function. Safeguarding the independence of the Bank’s compliance function.
L – Overseeing the performance of the Risk function. Safeguarding the independence of the Bank’s risk function.
M – Overseeing the development and implementation of the Bank’s remuneration policies and practices.
N – Ensuring the independence, autonomy and effectiveness of the firm’s policies and procedures on whistleblowing.
O – Responsibility for the management of the Bank’s capital and the Bank’s funding and liquidity operations.
Oa – Responsibility for the Bank’s capital and funding from a budget perspective.
P – The Bank’s treasury management functions.
Q – The production and integrity of the Bank’s financial information.
R – Responsibility for framework for financial sector continuity.
S – Responsibility for internal stress-testing.
T – Responsibility for the development and maintenance of the Bank’s business model.
U – Overseeing the assessment of fitness and propriety of Non-Executive Directors.
V – Responsibility for the Bank’s proprietary trading activities.
X – Responsibility for the Bank managing risks in relation to outsourcing of functions critical to its activities.
Z – Responsibility for the protection of clients’ assets.
Overall Responsibilities
As allocated and set out in individual Statements of Responsibilities.

Statements of Responsibilities

Executive Senior Managers

The Governor

The Governor is appointed by the King on the advice of the Prime Minister and has overall responsibility for leading the Bank in pursuing its mission to promote the good of the people of the United Kingdom by delivering price and financial stability. In chairing the MPC, the FPC, the PRC and – along with the Deputy Governor for Financial Stability - the FMIC, the Governor plays the central role in co-ordinating and setting monetary and macro and microprudential policy. The Governor is responsible for setting the strategy of the Bank (subject to approval by Court) and, working closely with the Chancellor of the Exchequer (‘the Chancellor’), the framework under which the Bank operates. The Governor is also the Bank’s principal spokesperson. The role of the Governor is approximately equivalent to that of the SMF 1 (Chief Executive Function). Due to the sharing of certain budgetary and financial reporting responsibilities with the Chief Financial Officer, stemming from the specific governance arrangements of the Bank, it also has elements of SMF 2 (Chief Finance Function). The Governor is accountable for a number of Prescribed Responsibilities.

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR A	Responsibility for applying the core principles of the SMR to the Bank.	Yes.	The Governor is responsible, together with the Chair of Court, for ensuring the allocation and adherence of the core principles of the SMR to the Bank is consistent with the Bank’s responsibilities and priorities as set out in the Bank’s strategic plan.
PR C	Responsibility for maintaining, retaining and updating the Responsibilities Map.	No	The Governor delegates to the Secretary of the Bank the confirmation and updating of the Responsibilities Map
PR E	Responsibility for the allocation of all Prescribed Responsibilities.	Yes	The Governor considers and allocates Prescribed Responsibilities for all Deputy Governors and certain other members of staff who report to the Governor, ensuring that these responsibilities are readily understood, shared, implemented, and monitored on a regular basis.
PR H	Responsibility for overseeing the adoption of the Bank’s culture in the day-to-day management of the Bank.	No.	The Governor leads on articulating the Bank’s culture and role-modelling the Bank’s desired behaviours. The Governor delegates and oversees the adoption of the desired culture throughout the Bank through his line management of the Deputy Governors and other direct reports.
PR Oa	Responsibility for the Bank’s capital and funding from a budget perspective.	Yes.	The maintenance of the Bank’s capital and funding from a budget perspective is the responsibility of the Chief Finance Officer, who reports to the Governor
PR Q	The production and integrity of the Bank’s financial information.	Yes.	The Governor has line management responsibility for the Chief Finance Officer and ensures that the production and integrity of the Bank’s total expenditure and income budget is in line with the Bank’s Budget as approved by Court. The Governor is also responsible for ensuring regular updates to Court on the Bank’s financial information.
PR T	Responsibility for the development and maintenance of the Bank’s business model.	Yes (but only in respect of the PRA, which is the responsibility of DGPR).	The Governor is responsible for setting the Bank’s overall strategy and business model (subject to approval by Court), and for ensuring that the Bank’s long-term funding model is sustainable and delivers value for money.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Co-ordination of Statutory Committees	As Chair of the MPC, FPC, PRC and (shared with DGFS) FMIC, the Governor plays the primary role in setting and co-ordinating monetary, macro and microprudential policy, and ensuring that there is adequate co-ordination across committees.	No. Other DGs support here, but the ultimate responsibility for ensuring co-ordination is effective is the Governor as Chair of MPC, FPC, PRA and (shared with DGFS) FMIC.
Bank Strategy	The Governor is responsible for setting the strategy of the Bank (subject to approval by Court), and ensuring it is communicated internally and externally and implemented. The Governor ensures that regular updates are made available to all relevant stakeholders.	No. The Governor chairs a number of internal governance committees through which the Bank’s strategy is implemented.
Banknotes	The Governor is responsible for ensuring public confidence in the availability, quality and security of the physical currency, including ensuring that Scottish and Northern Ireland banknotes are backed with appropriate assets.	No. The Chief Cashier and Executive Director, Banking reports to the Governor in respect of the Bank’s notes function and manages this on a day-to-day basis.
Talent management	The Governor is responsible, together with the Chief Operating Officer, for developing and delivering a talent management plan for the Bank, including regular updates to the Bank’s Court on succession plans for the top management team.	Yes. The Chief Operating Officer has responsibility for talent management as part of the Bank’s People function.
Communication	The Governor is the Bank’s principal communicator. The Governor is responsible for the Bank being accountable to the people through Parliament, and for building and retaining public confidence in the Bank’s functions.	No. The Executive Director, Communications reports to the Governor and has responsibility for the Bank’s communications on a day-to-day basis.
Representation	The Governor is the Bank’s primary official representative at major domestic and international meetings and fora.	No, but the Governor delegates the responsibility of representing the Bank at certain fora and meetings to Deputy Governors. Deputy Governors and others represent the Bank at a number of other fora and meetings.
Budget	The Governor has line management responsibility for the Chief Finance Officer, and ensures that the setting, communication, and delivery of the Bank’s total expenditure and income budget is in line with the Bank’s budget as approved by Court.	Yes. The Chief Finance Officer reports to the Governor and shares responsibility for the Bank’s budget.
Finance	Responsibility for finance, including financial control, budgeting, management reporting and analysis, statutory reporting and tax matters.	Yes. The Chief Finance Officer reports to the Governor and shares responsibility for maintenance of the Bank’s capital and funding from a budget perspective, and for the production and integrity of the Bank’s financial information.
Risk	The Governor has line management responsibility for the Executive Director, Risk, and ensures that the Bank has a risk profile consistent with ensuring the delivery of its objectives.	No. The Executive Director, Risk reports to the Governor and has the Prescribed Responsibility for the Bank’s Risk and Compliance Function.
Legal	The Governor has line management responsibility for the Bank’s General Counsel, and is responsible for the formulation of policy and management procedures in line with legal obligations.	Yes. The General Counsel reports to the Governor and shares responsibility for managing legal risk across the Bank.
Business ethics	The Governor has line management responsibility for the Secretary of the Bank who is responsible for providing the Bank’s central secretariat. As Conflicts Officer, the Secretary is responsible for codes relating to business ethics including providing advice to the Bank’s most senior members.	Yes. The Secretary of the Bank reports to the Governor and shares responsibility for managing business ethics issues on a day-to-day basis.

Key Committees

The Governor is a member of Court.
The Governor chairs the PRC.
The Governor chairs the MPC.
The Governor chairs the FPC.
The Governor is a chair of the FMIC (shared with DGFS).

Deputy Governor, Monetary Policy

DGMP reports to the Governor and has responsibility for the Bank’s research and analysis of the UK economy in support of MPC decisions. DGMP shares responsibility for the Bank's Data & Analytics Transformation agenda (with COO) and for the Bank's international strategy (with DGFS). DGMP is a vice-chair of the Monetary Policy Committee, and a member of the Court of Directors and the Financial Policy Committee.

Under the SMR, Deputy Governor, Monetary Policy has no Prescribed Responsibilities. The role of DGMP is approximately equivalent to an SMF 3 (Executive Director Function).

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Monetary Analysis	DGMP is responsible for ensuring that the Monetary Policy Committee (MPC) is provided with the briefing and analysis it requires to make high quality monetary policy decisions; that research is undertaken in order to provide high quality support for the MPC in the future; and that the MPC publications help support a widespread understanding and trust of the monetary policy framework.	No. The Chief Economist and Executive Director, Monetary Analysis reports to DGMP and manages monetary analysis on a day-to-day basis.
International	Responsibility for: advising the MPC and FPC of global economic and financial outlook and its implications for the UK developing and implementing the Bank’s international strategy	Yes. The Executive Director, International reports jointly to DGFS and DGMP and manages International Directorate on a day-to-day basis.
Data and Analytics	Along with the COO, DGMP is responsible for overseeing Data Analytics Transformation Directorate which is the Bank’s centre of expertise for compilation, dissemination and publication of regulatory and statistical data, promoting innovation and quality to support analysis, policy and decision making by the Bank’s Committees, UK government departments and international organisations.	Yes. The Chief Data Officer reports to DGMP and to the COO, and manages Data Analytics Transformation Directorate on a day-to-day basis.
Research	DGMP is responsible for overseeing the delivery of the Bank of England Agenda for Research to generate research which informs the Bank’s policy responsibilities, to boost the external profile of the Bank’s research output, to foster external collaboration and to build research skills within the Bank	No. The Chief Economist and Executive Director, Monetary Analysis reports to DGMP and manages research on a day-to-day basis.

Key Committees

DGMP is a member of Court.
DGMP is vice-chair of the MPC.
DGMP is a member of the FPC.

Deputy Governor, Financial Stability

DGFS reports to the Governor and has responsibility for oversight of the Bank’s functions in relation to financial stability risk assessment and macroprudential policy. DGFS also has responsibility for supervision and oversight of Financial Market Infrastructures (FMI), in addition to oversight of the Bank’s sector-wide response framework. DGFS ensures the Bank plays a leading role in shaping the international financial system and is jointly accountable for the Bank’s international strategy and oversight of its implementation. The role of DGFS is equivalent to SMF 3 (Executive Director Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR R	Responsibility for the framework for financial sector continuity.	No.	DGFS has responsibility in the Bank for oversight of the Authorities Response Framework that sets out how UK authorities respond to ensure financial sector continuity in the event of major operational disruption to the financial system.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Financial stability strategy and risk	Responsibility for assessment of risks to UK financial stability, overseeing staff analysis for stress testing and strategy for use of macroprudential tools, and the effective operation of the FPC.	No. The Executive Director, Financial Stability Strategy and Risk (FSSR) reports to DGFS and manages financial stability strategy and risk on a day-to-day basis.
Responsibility for prudential banking and insurance policy	Responsibility for the formulation of prudential policy in line with legal obligations, and for engagement with external policy bodies in the formulation of prudential policy on an international and national basis. DGFS ensures that emerging policy issues are raised for appropriate discussion and for delivering high quality analysis on prudential policy issues.	Yes. The Executive Director, Prudential Policy reports jointly to DGFS and DGPR and manages prudential policy on a day-to-day basis.
Financial Markets Infrastructure (FMI)	DGFS chairs FMIC and is responsible for supervision of FMIs in line with the agreed supervisory approach, approval of all decisions in relation to FMIs, except those reserved to the Governor or FMIC, formulation of FMI policy in line with legal obligations, and for engagement with external policy bodies in formulation of FMI policy on an international and national basis.	No, although under the terms of reference of the FMIC, the Governor is also designated as a Chair. The Executive Director, Financial Markets Infrastructure reports to DGFS and manages Financial Markets Infrastructure on a day-to-day basis.
International	DGFS and DGMP are jointly responsible for advising the MPC and FPC of global economic and financial outlook, and providing an assessment of how foreign shocks impact on UK economy and financial stability and developing and implementing the Bank’s international strategy including influencing outcomes that contribute to the Bank’s mission.	Yes. The Executive Director, International reports jointly to DGFS and DGMP and manages the International Directorate on a day-to-day basis.
Climate Change risks (policy)	Responsibility for climate risks to the Bank’s policy functions and responsibility for the financial risks from climate change.	No. The Executive Director, International Directorate reports to DGFS and manages climate policy on a day-to-day basis.

Key Committees

DGFS is a chair of the FMIC (shared with the Governor)
DGFS is a member of the MPC
DGFS is a member of the FPC
DGFS is a member of the PRC
DGFS is a member of Court

Deputy Governor, Markets and Banking

DGM&B reports to the Governor and has responsibility for the Bank’s Markets, Banking, Payments, Resolution and Strategic Change & Operations Directorates. DGM&B is responsible for the Bank’s financial market operations and balance sheet, including the provision of liquidity insurance to the banking system and the operation of the Real Time Gross Settlement (RTGS) system. The Balance Sheet Remit and the Financial Risk Standards govern the day-to-day management of the Bank’s balance sheet. DGM&B is responsible for the Resolution Directorate, responsible for the resolution of banks and the other financial institutions and related policy. The role of DGM&B is approximately equivalent to an SMF 3 (Executive Director Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR D	Responsibility for the Bank’s policies and procedures for countering the risk that the Bank might be used to further financial crime.	Yes.	DGM&B jointly owns with the Executive Director, Risk, the Bank’s anti-money laundering, anti-terrorist financing and financial sanctions policies. DGM&B has responsibility for the implementation of supporting procedures in Markets and Banking. The Bank’s Money Laundering Reporting Officer operates from the Markets and Banking area, with a joint reporting line to DGM&B and the Executive Director, Risk.
PR O	Responsibility for the management of the Bank’s capital and the Bank’s funding and liquidity operations.	No.	Management of the Bank’s capital through banking transactions and operations in sterling and foreign exchange financial markets is the responsibility of DGM&B. Funding and liquidity operations in the Sterling Monetary Framework are the responsibility of DGM&B.
PR P	Responsibility for the Bank’s treasury management functions.	No.	Management of the Bank’s Sterling and Foreign Currency portfolios is the responsibility of DGM&B.
PR V	Responsibility for the Bank’s proprietary trading activities.	No.	DGM&B has responsibility for the limited, policy related trading activity on the Bank’s Sterling and Foreign Currency portfolios that the Bank undertakes.
PR Z	Responsibility for the protection of clients’ assets.	No.	DGM&B has responsibility for all assets held and managed on behalf of the Bank’s customers, which include HM Government and other central banks.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Banking	Responsibility for: The settlement of all sterling and foreign currency transactions relating to the Bank of England’s operations in sterling and foreign exchange financial markets carried out by, including on behalf of clients Customer banking service	No. The Executive Director for Banking reports to DGM&B (except in respect of the Notes function) and manages the Banking Directorate on a day-to-day basis.
Payments	Responsibility for: Payment services operations Implementing strategic changes and overseeing day to day operations in relation to RTGS/CHAPS, in line with delegations	No. The Executive Director for Payments reports to the DGM&B and manages the Payments Directorate on a day-to-day basis.
Markets	Responsibility for: the implementation of the MPC’s policy decisions advising the MPC on operational design options, as required investment management decision-making and execution client assets held and managed on behalf of the Bank of England’s customers wholesale lending decisions made as part of the Bank of England’s Sterling Monetary Framework. The Balance Sheet Remit and the Financial Risk Standards give authority for a number of decisions reserved for the DGM&B or the Governor customer service relating to the Bank of England’s management of the Exchange Equalisation Account. the Bank’s middle office functions and activities the Market Intelligence activities conducted in the Markets Directorate the first line of defence financial risk function and the day-to-day management of financial risk to the Bank’s balance sheet in accordance with the financial risk management framework the Bank’s administration of the SONIA benchmark	No. The Executive Director for Markets reports to the DGM&B and manages Markets on a day-to-day basis.
Resolution	Responsibility for the resolution of banks and the other financial institutions subject to the UK Special Resolution Regime and for developing Bank policy in this area	No, although certain decisions in relation to resolutions are reserved to the Governor. Executive Director, Resolution reports to DGM&B and manages resolution on a day-to-day basis.

Key Committees

DGM&B is a member of Court.
DGM&B attends ARCo.
DGM&B is a member of the FPC.
DGM&B is a member of the MPC.
DGM&B member of the PRC.

Deputy Governor Prudential Regulation and Chief Executive, Prudential Regulation Authority

DGPR reports to the Governor and has operational responsibility for delivering the PRA’s strategy. As CEO of the PRA, DGPR has responsibility for management of the PRA and is responsible for the expenditure of the PRA levy. The role of DGPR is approximately equivalent to an SMF 3 (Executive Director Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR T	Responsibility for the development and maintenance of the Bank’s business model (in respect of the PRA).	No.	DGPR is responsible for the development of the PRA’s business plan. Once this is approved by the PRC, DGPR is responsible for the management of the PRA in accordance with the business plan.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Responsibility for managing complaints relating to the PRA	Responsibility for investigation and management of complaints relating to the PRA.	No. The Financial Services and Markets Act requires that an independent person is appointed to review eligible complaints against the PRA where complainants are not satisfied. This role is carried out by the Complaints Commissioner. Operation of the process is delegated to the PRA Secretariat.
Responsibility for external communications relating to the PRA	Responsibility for the strategy and content of all PRA communications.	No. The production of external communications relating to the PRA is undertaken by the PRA Executive Directors. The distribution of PRA communications is undertaken by the Bank’s Press Office.
Ensuring decisions are made within the PRA decision making framework	Responsibility for ensuring decisions are made within the PRA decision-making framework as approved by the PRC.	No. Maintenance of the framework and compliance against it is undertaken by the PRA Secretariat.
Management of Operations within the PRA	Responsibility for the PRA budget and for the operational running of the PRA as part of the Bank.	No. Director, Regulatory Operations reports to DGPR and manages operations within the PRA on a day-to-day basis.
Risk specialists	DGPR is responsible for ensuring the provision of technical expertise in specific risk disciplines as part of the PRA’s integrated supervisory approach, in order to identify, analyse and mitigate material risks to the safety and soundness of PRA-regulated firms.	No. Executive Director, Supervisory Risk Specialists reports to DGPR and manages Risk Specialists on a day-to-day basis.
Supervision of UK banks, building societies and credit unions	Responsibility for the supervision of UK banks, building societies and credit unions in line with the PRA supervisory approach and the agreed supervisory approach to achieve the Statutory Objectives.	No. Executive Director, UK Banks Supervision reports to DGPR and manages the supervision of UK banks, building societies and credit unions on a day-to-day basis.
Supervision of International Banks headquartered outside the UK with branches and subsidiaries operating in the UK	Responsibility for the supervision of International Banks in line with the PRA supervisory approach and the agreed supervisory approach to achieve the Statutory Objectives.	No. Executive Director, Authorisations, Regulatory Technology and International Supervision reports to DGPR and manages supervision of International Banks on a day-to-day basis.
Supervision of Insurance firms within the UK	Responsibility for supervision of Insurance firms in line with the PRA supervisory approach and the agreed supervisory approach to achieve the Statutory Objectives.	No. Executive Director, Insurance Supervision reports to DGPR and manages Insurance Supervision on a day-to-day basis.
Responsibility for prudential banking and insurance policy	Responsibility for the formulation of prudential policy in line with legal obligations, including overseeing engagement with external policy bodies in formulation of prudential policy on an international and national basis. DGPR ensures that emerging policy issues are raised for appropriate discussion and for delivering high quality analysis on prudential policy issues.	Yes. Executive Director, Prudential Policy reports jointly to DGPR and DGFS and manages prudential banking and insurance policy on a day-to-day basis.

Key Committees

DGPR is a member of Court
DGPR attends ARCo
DGPR is a member of the PRC
DGPR is a member of the FPC

Chief Operating Officer

The COO reports to the Governor and has responsibility for the day-to-day management of the Bank including technology, information and physical security, human resources, property and procurement. Consequently the COO is accountable for a number of Prescribed Responsibilities and other overall responsibilities listed. The COO is responsible for implementing the Bank’s business continuity (operational resilience) policies, as applicable, across these areas of responsibility. The COO is equivalent to SMF 24 (Chief Operations Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR G	Responsibility for monitoring the effective implementation of policies and procedures for the induction, training and professional development of all persons performing senior management roles at the Bank other than members of Court.	No.	The COO is responsible for all talent processes and is accountable to the Governor and the Chair of Court for developing and implementing these procedures.
PR M	Responsibility for overseeing the development of, and implementation of the Bank’s remuneration policies and practices.	Yes.	The COO is responsible for all talent policies and processes and, with the Executive Director, People (who reports to the COO), develops remuneration policies and processes for decision by the Remuneration Committee.
PR X	Responsibility for the Bank managing risks in relation to outsourcing of functions critical to its activities.	No	The COO oversees the Bank’s Central Services function. The Executive Director, Central Operations, reports to the COO. The COO and the Executive Director, Central Operations work with business and functional areas in relation to implementing the firm’s overall framework, policy, and systems and controls relating to outsourcing.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
People	Responsibility for all aspects of talent including recruitment, development and training, performance management, promotion, reward, terms and conditions, and employee relations including our engagement survey, diversity initiatives and corporate social responsibility initiatives.	No, save that Talent Management is shared with the Governor as set out in his Statement of Responsibilities. The Executive Director, People reports to the COO, and manages the Bank’s People function on a day-to-day basis.
Information technology	Responsible for the development and maintenance of technology of the Bank.	No. The Executive Director, Technology reports to the COO and manages the Bank’s Technology function on a day-to-day basis.
Major change programmes	Responsibility for overseeing investment and delivery across the Bank.	No. Executive Director, Change & Planning reports to the COO and oversees projects on a day-to-day basis.
Data and Analytics	Along with DGMP, the COO is responsible for overseeing Data Analytics Transformation Directorate which is the Bank’s centre of expertise for compilation, dissemination and publication of regulatory and statistical data, promoting innovation and quality to support analysis, policy and decision making by the Bank’s Committees, UK government departments and international organisations.	Yes. The Chief Data Officer reports to DGMP and to the COO, and manages Data Analytics Transformation Directorate on a day-to-day basis.
Property and health and safety	Responsibility for maintenance and effective management of the Bank’s property and Health and Safety procedures.	No. Executive Director, Central Operations reports to the COO and manages property and health and safety procedures on a day-to-day basis.
Physical security	Responsibility for the physical security of the Bank’s employees and property.	No. Executive Director, Central Operations reports to the COO and manages property, procurement and physical security on a day-to-day basis.
Information security	Responsibility for developing Information Security policies and procedures and monitoring compliance with those. The Technology directorate implements Information Security initiatives.	No. The Chief Information Security Officer reports to the Chief Information Officer and manages Information Security on a day-to-day basis.
Strategic Plan	Responsibility for the development of, and reporting on progress on implementation of, the Strategic Plan for the Governor. The COO is responsible for identifying opportunities for increasing the effectiveness and efficiency of the central functions and supporting fellow Governors in their line areas.	No. The COO and the Executive Director, Change and Planning work with business and functional areas to ensure the development and implementation of the Strategic Plans as appropriate.
Climate Change risks (physical operations)	Responsibility for climate risks to the Bank’s physical operations.	No. The Executive Director, Central Operations reports to the COO and manages climate risk to the Bank’s physical operations on a day-to-day basis.

Key Committees

COO attends Court.
COO attends ARCo.
COO attends RemCo.

Chief Finance Officer

The Chief Finance Officer has responsibility for the day-to-day management of the Bank’s Finances. The Chief Finance Officer reports to the Governor and covers functions of the SMF 2 (Chief Finance Function), along with the Governor in respect of where the Responsibilities are shared.

Although the Bank itself is not a qualifying company under the relevant provisions of the Finance Act 2009, we have chosen to designate the Chief Finance Officer as our Senior Accounting Officer with overall responsibility for managing the Bank’s financial accounting arrangement consistent with the Act’s requirements.

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR Oa	Responsibility for the Bank’s capital and funding from a budget perspective.	Yes.	The Governor and the Chief Finance Officer are jointly responsible for PR Oa. The maintenance of the Bank’s capital and funding from a budget perspective is the joint responsibility of the Chief Finance Officer and the Governor.
PR Q	Responsibility for the production and integrity of the Bank’s financial information.	Yes.	The Governor and the Chief Finance Officer are jointly responsible for PR Q. The Chief Finance Officer has responsibility for the production and integrity of the Bank’s financial information. The responsibility is shared with the Governor.

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PR Oa

Responsibility for the Bank’s capital and funding from a budget perspective.

Yes.

The Governor and the Chief Finance Officer are jointly responsible for PR Oa.

The maintenance of the Bank’s capital and funding from a budget perspective is the joint responsibility of the Chief Finance Officer and the Governor.

PR Q

Responsibility for the production and integrity of the Bank’s financial information.

Yes.

The Governor and the Chief Finance Officer are jointly responsible for PR Q. The Chief Finance Officer has responsibility for the production and integrity of the Bank’s financial information. The responsibility is shared with the Governor.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Finance	The Chief Finance Officer is responsible for financial control, budgeting, management reporting and analysis, statutory reporting and tax matters.	Yes. The Chief Finance Officer shares responsibility with the Governor for maintenance of the Bank’s capital and funding from a budget perspective, and shares responsibility for the production and integrity of the Bank’s financial information. The Chief Finance Officer manages finance on a day-to-day basis.

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Finance

The Chief Finance Officer is responsible for financial control, budgeting, management reporting and analysis, statutory reporting and tax matters.

Yes.

The Chief Finance Officer shares responsibility with the Governor for maintenance of the Bank’s capital and funding from a budget perspective, and shares responsibility for the production and integrity of the Bank’s financial information.

The Chief Finance Officer manages finance on a day-to-day basis.

Key Committees

The Chief Finance Officer attends ARCo.

Internal Auditor

The Internal Auditor is responsible for management of the internal audit function and reports directly to Chair of ARCo on the internal audit function, in line with corporate best practice.

Under the SMR, the Internal Auditor has no Prescribed Responsibilities, but is equivalent to SMF 5 (Head of Internal Audit Function).

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Responsibility for management of the internal audit function and for reporting directly to Court on the internal audit function.	The Internal Auditor is responsible for the preparation (with the input of executive management) and delivery of an annual audit plan which, commensurate with business risk, evaluates the effectiveness of internal controls, risk management and governance processes in all areas of the Bank. The Internal Auditor is responsible for making sure that Internal Audit: a) delivers on its commitments to HM Treasury (HMT); b) supports, as appropriate the work of the Bank’s (including the PRA) and Exchange Equalisation Account’s (EEA’s) external auditors; and c) engages as appropriate to support the development of the Internal Audit profession in central banks and the financial service industry more generally. The Internal Auditor agrees, with the Chair of ARCo, Internal Audit’s strategic objectives and is responsible for making sure that these are delivered.	No.

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Further details of this overall
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Responsibility for management of the internal audit function and for reporting directly to Court on the internal audit function.

The Internal Auditor is responsible for the preparation (with the input of executive management) and delivery of an annual audit plan which, commensurate with business risk, evaluates the effectiveness of internal controls, risk management and governance processes in all areas of the Bank.

The Internal Auditor is responsible for making sure that Internal Audit: a) delivers on its commitments to HM Treasury (HMT); b) supports, as appropriate the work of the Bank’s (including the PRA) and Exchange Equalisation Account’s (EEA’s) external auditors; and c) engages as appropriate to support the development of the Internal Audit profession in central banks and the financial service industry more generally.

The Internal Auditor agrees, with the Chair of ARCo, Internal Audit’s strategic objectives and is responsible for making sure that these are delivered.

No.

General Counsel

The General Counsel is responsible for the Bank’s legal function and reports directly to the Governor.

Under the SMR, the General Counsel has no Prescribed Responsibilities.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Legal Directorate	The General Counsel is the Bank’s principal legal adviser and has overall responsibility for the Bank’s legal function. The Bank’s legal function provides advice which seeks to manage legal risk across the Bank. The General Counsel advises and attends Bank committees as necessary, including particularly the FPC, PRC, FMIC and Court.	Yes, with the Governor to whom the General Counsel reports.

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Legal Directorate

The General Counsel is the Bank’s principal legal adviser and has overall responsibility for the Bank’s legal function. The Bank’s legal function provides advice which seeks to manage legal risk across the Bank.

The General Counsel advises and attends Bank committees as necessary, including particularly the FPC, PRC, FMIC and Court.

Yes, with the Governor to whom the General Counsel reports.

Secretary of the Bank

The Secretary of the Bank reports to the Governor and to the Chair of Court and is responsible for providing the Bank’s central secretariat and, as the Bank’s conflicts officer, for codes relating to conflicts of interest. As Secretary to the Court, the Secretary is responsible for ensuring that Directors are, once appointed, fully aware of the relevant codes of practice.

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR U	Overseeing the assessment of fitness and properness of the Bank’s NEDs.	Yes, with the Chair of Court.	The Secretary is responsible for ensuring that Court Directors are, once appointed, fully briefed on the Court conflicts of interest Code. The Secretary maintains records of disclosures made by NEDs of business interests and potential conflicts, and financial disclosures and permissions granted under the Bank’s personal dealing rules.

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PR U

Overseeing the assessment of fitness and properness of the Bank’s NEDs.

Yes, with the Chair of Court.

The Secretary is responsible for ensuring that Court Directors are, once appointed, fully briefed on the Court conflicts of interest Code.

The Secretary maintains records of disclosures made by NEDs of business interests and potential conflicts, and financial disclosures and permissions granted under the Bank’s personal dealing rules.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Secretary’s Department	The Secretary is responsible for the Bank’s records and archives; Bank conflicts of interest and records management policies for all employees; and preparing briefing for Court members. As Conflicts Officer, the Secretary is responsible for the application of the Conflicts of Interest codes applying to the Bank’s statutory committees and has responsibility for Our Code as well as for the individual Conflicts of Interest policies that are reflected in Our Code, and for the provision of advice.	No, except in relation to business ethics where the overall responsibility for managing business ethics issues on a day-to-day basis is shared with the Governor.

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Secretary’s Department

The Secretary is responsible for the Bank’s records and archives; Bank conflicts of interest and records management policies for all employees; and preparing briefing for Court members.

As Conflicts Officer, the Secretary is responsible for the application of the Conflicts of Interest codes applying to the Bank’s statutory committees and has responsibility for Our Code as well as for the individual Conflicts of Interest policies that are reflected in Our Code, and for the provision of advice.

No, except in relation to business ethics where the overall responsibility for managing business ethics issues on a day-to-day basis is shared with the Governor.

Key Committees

The Secretary of the Bank is Secretary to Court.

Executive Director, Risk

The Executive Director, Risk reports to the Governor, and is responsible for the management of the Risk Directorate. The Executive Director, Risk has responsibility for the Bank’s financial and non-financial second line risk functions including oversight of the Bank’s risk profile; effectiveness of controls and risk reporting. The Executive Director, Risk also has overall responsibility for the Bank’s Central Compliance function. The Executive Director, Risk is equivalent to SMF 4 (Chief Risk Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR D	Responsibility for the Bank’s policies and procedures for countering the risk that the Bank might be used to further financial crime.	Yes.	The Executive Director, Risk jointly owns with the DGM&B the Bank’s anti-money laundering, anti-terrorist financing and financial sanctions policies. The Executive Director, Risk has responsibility for the implementation of supporting procedures in areas of the Bank other than in Markets & Banking. The Bank’s Money Laundering Reporting Officer resides in Markets & Banking with a joint reporting line to Executive Director, Risk and DGM&B. The Executive Director, Risk is responsible to ARCo for reporting on any bribery, corruption, or data security risks.
PR K	Safeguarding the independence of, and overseeing the performance of, the Bank’s compliance function.	No	The Executive Director, Risk oversees the day-to-day performance of the Bank’s compliance function, including its privacy function, and is responsible for encouraging, monitoring and reporting on compliance across the Bank through oversight of the necessary control processes, and culture, to ensure compliance with all of the Bank’s policies.
PR L	Safeguarding the independence of, and overseeing the performance of, the Bank’s risk function.	No	The Executive Director, Risk oversees the day-to-day performance of the Bank’s second-line risk function, to ensure: that all material risks are identified, measured and reported; that those functions are appropriately involved in material risk management decisions; and that the Bank has an effective risk management framework.
PR S	Responsibility for managing the Bank’s internal stress-tests	No	The Executive Director, Risk oversees the Financial Risk & Resilience Division which carries out stress tests to assess financial risk across the Bank’s balance sheet.

Title of this overall responsibility	Further details of this overall responsibility	Is this overall responsibility shared? Name(s), and/or job title(s) of the individual(s) the responsibility is shared with, and/or other relevant detail
Business continuity and critical incident policies.	Responsibility for developing and maintaining business continuity and critical incident policies.	No. Relevant business areas are responsible for operating in line with these policies. The Executive Director, Risk, oversees the reporting to ARCo of compliance with these policies, on an exceptions basis.

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Business continuity and critical incident policies.

Responsibility for developing and maintaining business continuity and critical incident policies.

No.

Relevant business areas are responsible for operating in line with these policies. The Executive Director, Risk, oversees the reporting to ARCo of compliance with these policies, on an exceptions basis.

Non-executive Senior Managers

Chair of Court

The Chair of Court is responsible for ensuring that the governance of the Bank is effective.

The Chair of Court is responsible for leadership of the Court and ensuring its effectiveness on all aspects of its role. The Chair is responsible for setting the Court ’s agenda and ensuring that adequate time is available for discussion of all agenda items, in particular strategic issues. The Chair also promotes a culture of openness and debate by facilitating the effective contribution of Non-executive Directors in particular and ensuring constructive relations between executive and Non-executive Directors. The Chair is supported by the Secretary and other Bank staff in ensuring that the Directors receive accurate, timely and clear information.

It is equivalent to SMF 9 (Chair of the Governing Body Function). The Chair also performs the function of Chair of the Nomination Committee (SMF 13).

The Chair is supported by a secretariat and the IEO. The Chair of Court may commission reviews by the IEO.

Ref	Prescribed or SMF Responsibility	Is this Prescribed/SMF Responsibility shared?	Further relevant details
PR A	Responsibility for applying the core principles of the SMR to the Bank.	Yes.	This responsibility is shared with the Governor.
PR E	Responsibility for the allocation of all Prescribed Responsibilities.	Yes.	Chair of Court in relation to Prescribed Responsibilities allocated to Chairs of Court Committees). Although appointments to Chairs of Court Committees are made by Court itself, the Chair of Court is responsible for ensuring Court performs this function.
PR F	Responsibility for leading the development and overseeing the implementation of the Bank’s policies and procedures for the induction, training and development of all directors.	No.	The Secretary maintains records of the training and induction given to Court NEDs, including teach-ins, and reviews this as part of the Bank’s adherence to the core principles of the SMR.
PR I	Responsibility for leading the development of the Bank’s culture by the Bank’s Court.	No.	The Court sets the Bank’s strategic priorities and objectives, and approves certain key internal policies which relate to the Bank’s culture and behavioural expectations. To support this, Court receives regular reporting from surveys coordinated by the Bank’s People function, receives evidence and updates regarding the Bank’s whistleblowing arrangements via ARCo, and engages with staff networks.
PR U	Responsibility for overseeing the assessment of fitness and properness of the Bank’s NEDs.	Yes.	The Secretary maintains records of business interests of NEDs and potential conflicts. Attestations to Our Code and financial disclosures and approvals relating to all NEDs are maintained by the Secretary.
SMF 13	Chairing and overseeing the performance of the Nomination Committee.	No.	NomCo keeps under review vacancies on Court and potential candidates; appointments to Court Committees including the appointment of the Senior Independent Director (SID); any actual or likely conflicts of interest; the appointment of the Chief Operating Officer, the Secretary, and the Internal Auditor.

Key Committees

Chair of Court chairs Court.
Chair of Court chairs NomCo.
Chair of Court is a member of RemCo.
Chair of Court usually attends ARCo.

Senior Independent Director

The Senior Independent Director (SID) acts as a sounding board for the Chair and as an intermediary for the other directors when necessary. The SID performs the SMF 14 (Senior Independent Director Function).

Ref	SMF Responsibility	Is this SMF Responsibility shared?	Further relevant details
SMF 14	Performing the role of a Senior Independent Director (SID) and leading the assessment of the Chair’s performance.	No.	The SID acts as a sounding board for the Chair and as an intermediary for the other directors when necessary. Led by the Senior Independent Director, the Non-Executive Directors meet without the Chair present at least annually to appraise the Chair’s performance taking into account the views of Executive Directors, and on such other occasions as are deemed appropriate.

Chair of Audit and Risk Committees (ARCo)

The Chair of ARCo reports to Court and has responsibility for chairing and overseeing the performance of ARCo under the terms of reference approved from time to time by Court.. This role is equivalent to SMF 10 (Chair of the Risk Committee Function) and SMF 11 (Chair of the Audit Committee Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared??	Further relevant details
PR J	Responsibility for safeguarding the independence of, and overseeing of the performance of, the Bank’s internal audit function (including the Head of Internal Audit).	No.	Under its terms of reference ARCo must monitor the integrity of the financial statements; oversee the selection process for new external auditors; consider and approve the letter of appointment of the external auditor; and consider and approve the remit and resources of the internal audit function and disclose in the Annual Report whether ARCo is satisfied that the internal audit function has appropriate resources. The Head of Internal Audit has a direct reporting line to the Chair of ARCo.
PR N	Responsibility for the independence, autonomy and effectiveness of the Bank’s policies and procedures on whistleblowing and ensuring staff that raise concerns are protected from detrimental treatment.	No.	Under its terms of reference ARCo must review and approve the Bank’s arrangements for its employees to raise concerns, in confidence, about possible fraud, danger, malpractice or misconduct in financial reporting or other matters and ensure that these arrangements allow proportionate and independent investigation and appropriate follow up action. This is managed through the Internal Whistleblowing function.

Reviewing Risk and Compliance Under its terms of reference ARCo must review and report on the effectiveness of the Bank’s risk framework, risk standards, risk management policies and systems of internal control. Compliance falls within this. No. Executive Director, Risk has Prescribed Responsibilities K and L relating to Compliance and Risk, is line managed by the Governor, and has an indirect reporting line to the Chair of ARCo.

Chair of Remuneration Committee (RemCo)

The Chair of RemCo reports to Court and has responsibility for chairing and overseeing the performance of RemCo under the terms of reference approved from time to time by Court. This role is equivalent to SMF 12 (Chair of the Remuneration Committee Function).

Ref	Prescribed Responsibility	Is this Prescribed Responsibility shared?	Further relevant details
PR M	Chairing and overseeing the performance of RemCo. Chairing and overseeing the performance of RemCo. Overseeing the development and implementation of the Bank’s remuneration policies and practices.	Yes.	RemCo is responsible for determining all matters relating to the remuneration, including pension benefits and costs, of the Governors, the COO, Executive Directors and Advisers to the Governor, external members of the MPC, FPC, PRC and FMIC. RemCo advises Court on major changes in remuneration structures within the Bank, including pension benefits, and other remuneration matters specifically referred to it by the Governor or by Court. RemCo approves the remuneration report for inclusion in the Bank’s Annual Report.

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PR M

Chairing and overseeing the performance of RemCo. Chairing and overseeing the performance of RemCo.

Overseeing the development and implementation of the Bank’s remuneration policies and practices.

Yes.

RemCo is responsible for determining all matters relating to the remuneration, including pension benefits and costs, of the Governors, the COO, Executive Directors and Advisers to the Governor, external members of the MPC, FPC, PRC and FMIC.

RemCo advises Court on major changes in remuneration structures within the Bank, including pension benefits, and other remuneration matters specifically referred to it by the Governor or by Court.

RemCo approves the remuneration report for inclusion in the Bank’s Annual Report.

The Chair of RemCo is supported by the Executive Director, People and the Secretary of the Bank.

Functions exercised by the Bank’s committees

Court

Court is responsible for managing the affairs of the Bank, other than the formulation of monetary policy. Court operates as a unitary board and consists of the Governor, the four Deputy Governors, and up to nine Non-executive Directors. The COO also attends Court. The Chair of Court and Deputy Chair are nominated by the Chancellor from among the Non-executive Directors. On the advice of NomCo, Court appoints a SID. Court has ultimate responsibility for the exercise of any functions of the Bank that are not given by statute to the FPC, MPC, PRC or FMIC. Court exercises certain functions directly, and delegates other functions with the Bank. Some functions are delegated to sub-committees. Other functions are delegated to the Governor and, through the Governor, to the executive of the Bank. The delegated functions include the Bank’s policy responsibilities for Resolution.

Matters that Court reserves to itself are set out in ‘Governance of the Bank including Matters Reserved to Court’. They include: the Bank’s financial framework and budget; resources of the Bank, including capital; the risk framework; the Sterling Monetary Framework; appointment of the COO, Executive Directors, the Internal Auditor and the Secretary; talent management and succession planning; appointment of external auditors; approval of the Bank’s report and accounts; the dividend; the Bank’s organisation; subsidiaries; ethical policies applying to staff and committees; senior remuneration and Bankwide pay structures (on advice from RemCo); and ‘transactions outside the ordinary course of business’ (Emergency Lending Assistance/formation of bridge banks) which may be dealt with by a transactions committee.

The IEO reports to the Chair of Court and plays a central role in helping Court hold the Bank to account for its performance.

Court has oversight functions, as set out in the Bank of England Act 1998 (‘the Act’), in relation to the performance by the Bank of all its objectives. These include the commissioning of Reviews under Section 3C of the Act; such Reviews may also be commissioned by the Non-executive Directors of Court acting independently.

Court, as part of its oversight functions, keeps under review the processes of the MPC, the FPC, the PRC and the FMIC. Court members are entitled to observe meetings of those committees.

Court generally reaches decisions by consensus, but votes may be taken if necessary.

Court sub-committees

Audit and Risk Committee (ARCo)

ARCo consists of not less than three Non-executive Directors, the Chair being appointed by Court. ARCo reviews accounting policies and the annual financial accounts for approval by Court; keeps under review and reports to Court on the Bank’s risk framework and risk standards, risk management policies and internal controls; oversees selection of financial auditor and makes recommendation to Court; agrees scope of audit and reviews management letter; approves any non-audit services provided by the financial auditor; and approves the internal audit plan and reviews findings. The Internal Auditor and Executive Director, Risk report to the Committee and the Chief Financial Officer attends as required.

Remuneration Committee (RemCo)

RemCo consists of not less than three Non-executive Directors, the Chair being appointed by Court, and determines all matters relating to the remuneration, including pension benefits and costs, of the Governors, the COO, Executive Directors and external members of the MPC, the FPC and the PRC. RemCo advises Court on major changes in remuneration structures within the Bank, including pension benefits, and other remuneration matters specifically referred to it by the Governor or by Court. RemCo approves the remuneration report submitted to Court for inclusion in the Bank’s Annual Report.

Nominations Committee (NomCo)

NomCo consists of all Court Non-executive Directors. It considers and makes recommendations to Court on the appointment of the COO, the Secretary and the Internal Auditor, appointments to Court Committees and to the pension trustees, and members of Court. It may also make recommendations to Court on matters relating to the Bank’s culture, such as Diversity, Equity and Inclusion, and aspects of the Bank’s strategy for people (e.g., Employee Value Proposition, Leadership Development and Skills. The Chair of Court is chair of the Committee. The Governor is not a member but is entitled to attend all meetings.

Monetary Policy

Monetary Policy Committee

The MPC is a statutory committee of the Bank with statutory responsibility for formulating monetary policy.

The Governor usually chairs the MPC, and there are four additional Bank members (DGMP, DGFS, DGM&B and the Chief Economist), and four independent members with relevant knowledge and experience appointed by the Chancellor.

The MPC pursues its monetary policy responsibility under the Bank’s monetary policy objective of (a) maintaining price stability; and (b) subject to that, supporting the Government’s economic policies, including its objectives for growth and employment. Price stability, and the Government’s economic policies, are defined in an annual remit from HM Treasury. The Committee must publish its decisions and the minutes of its meetings, and each quarter, in respect of that quarter, a review of the monetary policy decisions published by the Bank, an assessment of developments in inflation in the UK economy, and an indication of the expected approach to meeting the Bank’s monetary policy objectives. The responsibilities of the MPC for formulating monetary policy may not be delegated. The Bank implements the MPC’s decisions.

The Committee takes decisions by vote, which is recorded in its published minutes.

Financial Stability

Financial Policy Committee

The FPC is a statutory committee of the Bank with various financial stability functions set in legislation.

The FPC consists of thirteen members. Six are Bank Governors and officials – the Governor, who usually chairs the Committee, DGFS, DGMP, DGM&B, DGPR and the Executive Director who has responsibility within the Bank for the analysis of threats to financial stability. The other seven are external members – the Chief Executive of the Financial Conduct Authority, five members with relevant knowledge and experience appointed by the Chancellor and a non-voting member from HM Treasury.

The Bank has an overarching statutory Financial Stability Objective to ‘protect and enhance the stability of the financial system of the United Kingdom’. The FPC is to exercise its functions with a view to contributing to the achievement by the Bank of this objective (primarily by identifying, monitoring and taking action to reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system) and, subject to that, supporting the Government’s economic policy, including its objectives for growth and employment.

The FPC meets at least quarterly. It may give Directions to the PRA and the Financial Conduct Authority in relation to macroprudential measures prescribed by secondary legislation under the Act. The FPC also has powers to make Recommendations to the PRA and FCA, HM Treasury, within the Bank, or to any other person. It publishes a record of its policy meetings and is responsible for preparing the twice-yearly Financial Stability Report. At least once a year, HM Treasury must specify what the Government’s economic policy is taken to be and must make recommendations to the FPC about matters relevant to its responsibilities for financial stability and supporting the Government’s economic policy, including its objectives for growth and employment. The FPC must respond formally to these, and provide reasons if it proposes not to follow the recommendations. The functions of the FPC must be exercised by the FPC itself and may not be delegated.

The Chair of the Committee is required to seek to secure that decisions are reached by consensus wherever possible. But there is a provision for decisions of the Committee to be taken by a vote if consensus cannot be reached, with the Chair having a second casting vote.

Prudential Regulation

Prudential Regulation Committee

The PRC is a statutory committee of the Bank, responsible for exercising the Bank’s functions as the Prudential Regulatory Authority.

The Governor chairs the PRC, and there are three additional ex-officio Bank members (DGFS, DGM&B and DGPR as Chief Executive of the PRA). The Governor must appoint a further Bank member, with the approval of the Chancellor, and the Chancellor appoints at least six independent members. The Chief Executive of the FCA is a member ex-officio.

The PRA’s general objective is to promote the safety and soundness of the firms it regulates. In relation to insurance, its objective is to ensure an adequate degree of protection for policy holders. As a secondary objective the PRA must (1) so far as reasonably possible act in a way that facilitates competition in the markets for services provided by the firms it regulates and (2) subject to aligning with relevant international standards, facilitate the international competitiveness of the economy of the UK and its growth in the medium to long term. The PRC must formulate, agree and publish each year a strategy for the exercise of its functions.

The PRC may not delegate certain functions, including determining the PRA’s strategy, issuing policy statements or rule-making functions. It may reserve other decisions to itself, but must delegate to the PRA Chief Executive Officer the functions of preparing for the PRC’s consideration drafts of the PRA’s strategy (and any proposed revisions) and the PRA’s annual budget; the day-to-day management of the exercise of the Bank’s functions of the PRA; and the day-to-day implementation of the PRA’s strategy. The PRA Chief Executive Officer may onward delegate functions.

The PRA is required under statute to consult on and publish its decision-making policy and procedure on aspects of the disciplinary and other enforcement powers that it can use in the course of supervision if deemed necessary to reduce risks. The choice of where such decisions are made is determined by the category of the firm in conjunction with the anticipated impact of the decision on a firm’s ability to carry out its business effectively and/or the impact on the PRA’s objectives.

The PRA has also completed a Responsibilities Map in line with the core principles of the Senior Managers Regime (SMR) for banks as recommended by the TSC. See the PRA SMR. For a more detailed list of the PRC’s non-delegable statutory responsibilities, see page 5 of the Terms of Reference for the PRC.

Financial Market Infrastructure

The Financial Market Infrastructure Committee

The FMIC is a statutory committee with the responsibility for exercising the Bank’s functions in relation to Financial Market Infrastructure, This includes payment systems recognised by HM Treasury, central securities depositories, and central counterparties (CCPs). Court has also delegated to the FMIC the Bank’s functions in relation to critical third parties pursuant to the Financial Services and Markets Act 2000. In exercising these functions in a way that advances the Financial Stability Objective the Bank must, so far as reasonably possible, act in a way which, as a secondary objective, facilitates innovation in the provision of FMI services with a view to improving the quality, efficiency and economy of the services.

The FMIC consists of the Governor, the Deputy Governor for Financial Stability (who share the role of chair of the FMIC), together with a number of other Bank members (including the Executive Director for FMI) and at least three independent members appointed by Court.

Appendix: Regulatory Prescribed Responsibilities as set out in regulatory rules and their relevance to the Bank as a public sector body

Ref	Prescribed Responsibilities	Relevant to Bank of England?
PR A	Responsibility for the firm’s performance of its obligations under the SMR.	Yes In respect of adherence to the core principles of the SMR.
PR B	Responsibility for the firm’s performance of its obligations under the employee certification regime.	No. The certification regime requires firms to ensure that material risk takers (MRTs) are subject to fitness and properness checks. The Bank does not apply the concept of MRTs to itself, but in practice, all of the Bank’s staff are subject to rigorous checks, both at the point of recruitment and on an ongoing basis.
PR C	Responsibility for compliance with the requirements of the regulatory system in relation to the management Responsibilities Map.	Yes The requirements relate to maintaining, updating and retaining the Responsibilities Map.
PR D	Overall responsibility for the firm’s policies and procedures for countering the risk that the firm might be used to further financial crime.	Yes
PR E	Responsibility for the allocation of all Prescribed Responsibilities.	Yes
PR F	Responsibility for: (a) leading the development of; and (b) monitoring the effective implementation of policies and procedures for the induction, training and professional development of all members of the firm’s governing body.	Yes

PR G	Responsibility for monitoring the effective implementation of policies and procedures for the induction, training and professional development of all persons performing designated senior management functions on behalf of the firm other than members of the governing body.	Yes
PR H	Responsibility for overseeing the adoption of the firm’s culture in the day-to-day management of the firm.	Ye
PR I	Responsibility for leading the development of the firm’s culture by the governing body as a whole.	Yes
PR J	Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of the internal audit function in accordance with relevant Compliance and Internal Audit rules.	Yes
PR K	Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of the compliance function in accordance with relevant Compliance and Internal Audit rules	Yes
PR L	Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of the risk function in accordance with relevant Risk Control rules.	Yes
PR M	Responsibility for overseeing the development of, and implementation of the firm’s remuneration policies and practices in accordance with Remuneration rules.	Yes Many aspects of the Remuneration rules are not relevant to the Bank as a non-commercial, public body.
PR N	Responsibility for the independence, autonomy and effectiveness of the firm’s policies and procedures on whistleblowing.	Yes
PR O	Responsibility for management of the allocation and maintenance of capital, funding and liquidity.	Yes Outside of policy committee responsibilities. Bank splits this into operational and budget perspectives (PR O and an additional PR Oa).
PR P	Responsibility for the firm’s treasury management functions.	Yes.
PR Q	Responsibility for the production and integrity of the firm’s financial information and its regulatory reporting.	Yes Regarding financial information.
PR R	Responsibility for the firm’s recovery plan and resolution pack and overseeing the internal processes regarding their governance.	Yes. Regarding financial sectoral resilience. The Bank has a separate Overall Responsibility relating to business continuity and critical incident policies.
PR S	Responsibility for managing the firm’s internal stress-tests and ensuring the accuracy and timeliness of information provided to the PRA and other regulatory bodies for the purposes of stress-testing.	Yes In relation to internal stress tests.
PR T	Responsibility for the development and maintenance of the firm’s business model by the governing body.	Yes
PR U	Responsibility for the firm’s performance of its obligations under Fitness and Propriety (in the PRA Rulebook) in respect of its notified Non-executive Directors.	Yes
PR V	If the firm carries out proprietary trading, responsibility for the firm’s proprietary trading activities.	Yes
PR W	If the firm does not have an individual performing the Chief Risk function, responsibility for the compliance of the firm’s risk management systems, policies and procedures with the requirements of Risk Control 2.1 to 2.4 of the PRA Rulebook.	No
PR X	Responsibility for the Bank managing risks in relation to outsourcing of functions critical to its activities.	Yes
PR Y	If the firm is a ring-fenced body, responsibility for ensuring that those aspects of the firm’s affairs for which a person is responsible for managing are in compliance with the ring-fencing obligations	Not applicable.
PR Z	Responsibility for the firm’s compliance with Client Assets rules	Yes, in that the Bank has responsibilities for assets held and managed on behalf of its customers, including HM Government and other central banks.

The Bank has reflected the Operational Resilience approach set out by the PRA in Supervisory Statement SS1/21, by placing an overall responsibility for Business Continuity and Critical Incident policies on the Executive Director, Risk, and noting that the COO will have significant responsibility for their implementation.

The Bank has reflected the PRA’s guidance set out in SS3/19 regarding the allocation of roles and responsibilities relating to the risks arising from climate change.

This page was last updated 16 December 2024

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Senior Managers Regime

Foreword

Allocation of Prescribed Responsibilities

Prescribed Responsibilities

Overall responsibilities

Responsibilities Map

Footnotes

Statements of Responsibilities

Executive Senior Managers

The Governor

Prescribed Responsibilities

Overall responsibilities

Key Committees

Deputy Governor, Monetary Policy

Overall responsibilities

Key Committees

Deputy Governor, Financial Stability

Prescribed Responsibilities

Overall responsibilities

Key Committees

Deputy Governor, Markets and Banking

Prescribed Responsibilities

Overall responsibilities

Key Committees

Deputy Governor Prudential Regulation and Chief Executive, Prudential Regulation Authority

Prescribed Responsibilities

Overall responsibilities

Key Committees

Chief Operating Officer

Prescribed Responsibilities

Overall responsibilities

Key Committees

Chief Finance Officer

Prescribed Responsibilities

Overall responsibilities

Key Committees

Internal Auditor

Overall responsibilities

General Counsel

Overall responsibilities

Secretary of the Bank

Prescribed Responsibilities

Overall responsibilities

Key Committees

Executive Director, Risk

Prescribed Responsibilities

Overall responsibilities

Non-executive Senior Managers

Chair of Court

Prescribed and SMF Responsibilities

Key Committees

Senior Independent Director

SMF Responsibility

Chair of Audit and Risk Committees (ARCo)

Overall responsibilities

Chair of Remuneration Committee (RemCo)

Functions exercised by the Bank’s committees

Court

Court sub-committees

Audit and Risk Committee (ARCo)

Remuneration Committee (RemCo)

Nominations Committee (NomCo)

Monetary Policy

Monetary Policy Committee

Financial Stability

Financial Policy Committee

Prudential Regulation

Prudential Regulation Committee

Financial Market Infrastructure

The Financial Market Infrastructure Committee

Appendix: Regulatory Prescribed Responsibilities as set out in regulatory rules and their relevance to the Bank as a public sector body

Museum