Governance

Maintaining high standards of stewardship

Although Hodge Bank is a privately-owned entity, it aims to implement the highest standards of corporate governance. The following is a summary of the Bank’s corporate governance framework.

The Board

The Board has ultimate responsibility for the proper stewardship of the Bank in all its undertakings. It meets regularly throughout the year to discharge its responsibilities for all important aspects of the Bank’s affairs, including monitoring performance, considering major strategic issues, approving budgets and business plans and reporting to the shareholder.

A Board control manual has been adopted which describes the high-level policy and decision-making arrangements within the Bank. The manual includes a schedule of matters reserved to the Board together with those items delegated to directors and Board and executive committees.

Board Committees:

The Board has established the following standing committees:

  • Audit committee: John Barbour (Chair), Alun Bowen, Helen Molyneux, David Gulland, Aileen Wallace and Iain Laing. All members of the audit committee are non-executive. Executive members of the Board and other senior executives attend as required by the Chair. The function of the audit committee is to review the work of the internal audit function, to consider the adequacy of internal control systems, to monitor the integrity of the financial statements and ensuring the independence and objectivity of the external auditor. The committee meets at least four times a year.
  • Risk and conduct committee: Alun Bowen (Chair), Helen Molyneux, John Barbour, Graeme Hughes, Aileen Wallace and Iain Laing. All members of the risk and conduct committee are non-executive. Executive members of the Board and other senior executives attend as required by the Chair. The function of the risk and conduct committee is to oversee the management of risk and the conduct of the business on behalf of the Board. It ensures that significant risks are identified, understood, assessed and managed and that good customer outcomes are achieved. The committee meets at least four times a year.
  • Remuneration committee: Helen Molyneux (Chair), Graeme Hughes, David Gulland, Iain Laing and Alun Bowen. The function of the remuneration committee is to consider remuneration policy and specifically to determine the remuneration and other terms of service of executive directors and senior managers. The executive directors decide fees payable to non-executive directors. The committee meets as required.
  • Nomination committee: Graeme Hughes (Chair), Helen Molyneux, John Barbour and Aileen Wallace. The function of the nomination committee is to recommend the appointment of directors to the Board and Board committees and to ensure that the Bank has an appropriate succession plan for executive and senior management positions. The committee meets as required.

 

Executive Committees:

Executive Committees

Executive Committee (ExCo)

The Committee is responsible for the formulation and execution of the strategy, and day-to-day management, subject to specific limitations and constraints imposed by the Board.

Enterprise Risk Committee

The Committee assists the Chief Risk Officer in the development and implementation of a robust enterprise wide risk management framework including consideration of strategic risks faced by the organisation and ensuring the adequacy of the internal control environment.

Operational & Conduct Risk Committee

The Committee assists the Chief Risk Officer in the development and implementation of a risk management framework to manage the operational and conduct risk profile, and to ensure the adequacy of the internal control environment.

Operations and Performance Committee

The Committee provides operational governance across the firm. This governance covers a range of key activities inclusive of oversight of internal and outsourced operations, Operational Resilience and forward-looking operational impacts to the business.

Assets and Liabilities Committee (ALCo)

The Committee implements the policies of the Board with respect to liquidity and interest rate risk management and provides recommendations to the Board on strategies for managing these risks. It also monitors and controls new business pricing and treasury counter party risk.

Commercial Credit Committee

The Committee is responsible for proposing a credit policy to the Board with respect to commercial lending and monitoring its application. It is also responsible for reviewing, challenging and if appropriate, approving credit proposals for new commercial lending business within its authority as delegated by the Board.

Retail Credit Committee

This Committee is responsible for proposing a credit policy to the Board in respect of all equity release business. It also monitors the application of credit policy, and ensures that all responsible lending requirements are met.

Actuarial Committee

The Committee monitors the adequacy and appropriateness of the Bank’s actuarial models and methods, and reviews proposed changes. It also monitors the Bank’s overall exposure to insurance risks in light of actuarial experience.

Innovation and Change Committee (ICC)

The Committee is responsible for the establishing and re-affirming strategic direction for digital delivery of Hodge bank’s projects and initiatives including products and services. The committee also monitors Technological Risk, Security and Data Analytics.Innovation and Change Committee (ICC)

Why Hodge

Doing the right thing is what we aim to do in all areas of our business – it guides our decisions.

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Protecting your money

Your eligible deposits with Hodge Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme.