The International Banker Magazine, Spring 2013 by The Worshipful Company of International Bankers

Spring 2013

The International Banker The magazine of the Worshipful Company of International Bankers News and Opinion for Members of the Company Featuring: The future structure of Banks â&#x20AC;&#x201C; p.5

Photograph: City Corporation ÂŠ Clive Totman 2012

The Worshipful Company of International Bankers 12 Austin Friars, London EC2N 2HE Clerk: Nicholas Westgarth

Directline: 020 7374 0212 Fax: 020 7374 0207 Email: to clerk@internationalbankers.co.uk

The Worshipful Company of International Bankers Master Draft Magazine

From the Editor Welcome to the Spring edition of the International Banker. This is full of articles of all sorts – see the Contents next. In the world of financial services we cover future banking structures through to the role of banks in the UK economy and the Single Market in financial services. Nearer home there is a lot of information on what is happening inside the Company. This includes the Master’s message, our exciting charity programme, what fellowship among members means, how the Membership Committee works and of course the popular business and social events, sport and arts – not forgetting an intriguing quiz to test your knowledge of the City.

The Editorial Team Christopher Bond

(Editor)

Jordan Buck

(Deputy Editor)

Bernard Strange

(Deputy Editor)

Robert Smith

(Proof Reader)

Not to be missed: Monday 8th July - “Summer Event” 8th Our “Summer Event” this JUL year will be an evening Reception in the magnificent Durbar Court at the Foreign & Commonwealth Office. The Durbar Court, at the heart of the India Office, was first used in 1867.

The Editorial Team (see box alongside) is always looking for comments and new ideas from members on the magazine. Please send these to bondchristopher@btconnect.com. They will be well received.

The Rt Hon The Lord Hurd of Westwell (the former UK Foreign Secretary Douglas Hurd) has agreed to speak to us.

I would also like to thank the Editorial Panel who provide invaluable help to the Team.

The Channel Islands Stock Exchange and Northcross Capital for their generous financial contribution to this event.

The Company thanks

Christopher Bond Editor bondchristopher@btconnect.com

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Contents The World Around Us

Clerks old and new �� 20 Tim Woods looks at the past, and Nicholas Westgarth at the future

The Master’s message �� 04 What happened in the last 6 months, and what is planned for the future

The Membership Committee �� 21 Robert Fenner, Chair, looks at what it does

Is the G20 regulatory agenda complete? �� 05

The Associates Section �� 22

Simon Hills of the British Bankers’ Association considers what banks should be aware of

Jordan Buck describes their many and lively activities

Fellowship among members �� 25

The Prospects for the UK Economy �� 07

Frank Moxon guides us on what this really means

Paul Fisher of the Bank of England looks ahead and at the role of banks

A City Quiz to test you �� 25 How much do you know about it ?

UK financial services and the Eurozone �� 08 Howard Miller of TheCityUK reviews the opportunities and threats

The Sailing Club �� 26 Kerttu Kulasepp on its ever-expanding activity

The role of equity and debt markets in the UK economy �� 10 Alan Yarrow analyses the relationship between the two

The Art Group �� 27 Frederique Pierre-Pierre on a success story

The Carol Sergeant Interview ��11 A fascinating and inspiring career in financial services

The Deutsche Bank Art Collection �� 27 The Curator on the Bank’s approach to collecting

Women on financial services company boards �� 12 Henrietta Royle and Karina Robinson look at their progress

A River Journey �� 28 Slowly down the Mekong in Laos

The Stock Exchange Museum �� 13 Brian Winterflood describes an exciting project

Some reasons to be cheerful �� 28

Using members’ skills to help charities �� 14

Answers to the City Quiz �� 29

Professor Paul Palmer of CASS shows how both can benefit

Business and Social Events Diary �� 29

Inside the Company

The energetic Gaye Murdoch reviews some recent events, and what we should look forward to next

The Lombard Committee �� 15 How you can help to raise £1 million for the Company’s charities

The Schools Essay Competition �� 16 Alex Rottenberg reports on the enthusiasm

The Mansion House Scholars �� 16 James Tree explains what the Company is supporting

The Lord Mayor’s Show 2012 �� 17 Frank Moxon remembers a cheerful day

The Company’s Chaplain’s view on the world �� 17 The Rev George Bush of St Mary-le-Bow gives his thoughts

The Annual Banquet in Guildhall �� 18 Bernard Strange reminds us of a good evening

The Constitutional Changes �� 19 The formal corporate governance changes

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From the Master April marks the half way stage in my term of office as Master, and is therefore a good time for me to report to you upon the first six months, and upon the plans for the next six.

beginning to develop a multi year plan and considering ways of more effectively allocating responsibilities amongst ourselves (such as working alongside various committees) in order to help the Wardens better understand the Company as they progress towards Mastership. This should also have the benefit of making the Wardens more visible to members of the Company and enable them to support the Master in carrying out some representational duties.

It has been both a privilege and a pleasure to be the Master of such a lively and important livery company. I have met members, seen its many and varied activities at first hand, promoted it with many other liveries and organizations and enjoyed seeing our past Master, Roger Gifford, carrying out his role in the highest office in the City.

Other topics that remain to be addressed include the remit of the Livery which the new Livery Committee will be reviewing. Liverymen have an important status distinct from membership; we all have much to gain from clarifying their roles and responsibilities and better channeling their contributions to the Company. We also need to update the terms of reference of the Committees.

Most of all I am glad to report the completion of the first corporate governance review of the Company since its inception â&#x20AC;&#x201C; see the changes to the Companyâ&#x20AC;&#x2122;s constitution later. This was part of the two-year initiative instigated by our late past Master Joseph King and carried forward by the King Group. The changes that have been introduced reflect the rapid growth of the Company from 200 to nearly 700 members and the results of the Member survey in which so many of you participated. As a consequence, this year we will be witnessing the largest ever number of Court vacancies. Please give thought to whether you would like to apply and start talking to your sponsors (10 needed). The Clerk will be inviting nominations from the Livery after the Easter break for consideration by the Court with the successful candidates to be announced after the July election Court.

In conclusion, the job absorbs as much time and energy as one can put into it and is a unique opportunity to meet people both inside and outside the Company. It is also extremelyÂ satisfying.

Another landmark has been the retirement of Tim Woods as our Clerk, and the appointment of Nicholas Westgarth as his successor. Tim has served the Company with distinction and loyalty since its establishment; we look forward with confidence to Nicholas doing the same. One year is a short time for any Master to achieve his or her goals. So my focus for the remainder of my term will be on broadening the planning horizon for the Company. This means working with the Wardens as a team,

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Is the G20 Regulatory Agenda complete?

Simon Hills, active member of the Company and of the British Bankers’ Association In the wake of the global financial crisis leaders of the G-20 countries agreed to a wide range of regulatory initiatives to make the world’s financial market more resilient. These are now coming to fruition and banks and bankers are assessing how they might impact their businesses, particularly if they operate in many different countries.

recognise that different countries may have different banking industry structures, the more dis-similar regional or national regimes become, the greater the burden. Ideally banks want one approach to calculating capital and liquidity, one approach to regulatory reporting and one approach to macro prudential buffers. Without this compliance and technology costs will only become an extra drag. So what can banks do to make sure that damaging dis-similarities are minimised? We need to be pro-active in our discussions with regulators as this patchwork of new initiatives comes into effect. It will not be enough to complain about unintended consequences. If we are to find a hearing bankers must present hard, objective evidence of how changes are hurting financing the wider economy – unsupported complaining won’t do.

What are the changes? It is a long list. In the US, Dodd-Frank introduces a version of Basel III, includes a requirement for recovery and resolution planning, will impact OTC derivatives, reforms credit rating agencies and limits executive pay. And crucially introduces the bank-structure changing Volker rule, which is analogous to, but not the same as the UK’s Vickers report recommendations or the EU’s Liikanen package (see box below).

There has already been some welcome recognition of industry concerns. In January the Basel Committee revised the Liquidity Coverage Ratio (LCR) which requires a bank to hold a buffer of highly liquid assets to see it through a severe financial stress. Originally only government bonds and central bank reserves were permitted in the LCR buffer but, realising the need to make banks more resilient to liquidity shocks without at the same time impeding their socially useful functions of maturity transformation and intermediation, the buffer has now been widened to include corporate bonds, equities and most importantly retail mortgage backed securities.

On this side of the Atlantic EMIR, CRDIV/CRR and the Banking Resolution Directive will have similar effects. But that poses a key question. If similar is not the same how much does it matter? Quite a lot in my view. If we get it wrong, the impact of regulatory reforms, which are designed to re-assert the proper functioning of our market-based global economy, will hobble the search for the most efficient allocation of risks and capital, to the detriment of our economic well-being.

Another liquidity requirement, the Net Stable Funding Ratio (NSFR), highlights the risks of implementing reform without understanding how individual measures might conflict or even cancel each other out. The NSFR demands that banks hold more long term funding against their loan book. This funding

Whilst international banks can tolerate some divergence from the same, for instance to

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will probably come from the issuance of longer duration subordinated and senior unsecured bonds.

So the whole sweep of re-regulation for financial services must be internally consistent, as well as geographically consistent. Banks and bankers must shine a light on areas of conflict. If we do not challenge dissonant measures our capacity to finance growth will be damaged and politicians will castigate us for not lending to the real economy – and that will harm our industry too. We should not be afraid of taking a stand.

Yet at the same time Solvency II – a prudential capital regime for insurers that is being introduced now- will mean that insurers, the likely investors in these longer term bonds, will be dis-incentivised from holding them because of penal capital requirements.

Ring fencing – similar but not the same

s er

Vi ck

er ck ol

Market-making Hedging Agency trading Trading US sovereign bonds Lending to hedge funds Lending to private equity deals

Simple drivatives

Deposit taking Derivatives for blanance-sheet management

Wealth mangement Asset management Underwriting Lending

Hedging for non-bank clients Retail payment services

Diagram courtesy of The Securities & Investment Review, membership magazine of the Chartered Institute for Securities & Investment

The Venn diagram shows us that there are at least 3 different approaches to the structural reform of banks. Volcker for the US, the Vickers Independent Commission on Banking report in the UK and the Liikanen report for the EU, which WCIB Court member Carol Sergeant helped write. Each one separates low risk banking from the riskier activities such as proprietary trading to ensure that retail depositor’s funds should not be put at risk and potentially require a government bail-out. But they do this in different ways, with the end result that a universal bank active in each of these geographical zones may end up being subject to all three.

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The UK economy: where are we now, are there signs of recovery and what role does the financial community have in this? Paul Fisher, Executive Director, Markets BoE and member of the Financial and Monetary Policy Committees There’s no ducking the fact that UK economic growth since the financial crisis in 2008 has been very disappointing. Output initially recovered well but has barely grown over the past two and a half years. That has reflected a number of headwinds: crisis in the euro-area, an impaired financial system and a squeeze on real incomes reflecting a range of factors such as tax and energy price rises and downwards pressure on wage growth as the economy adjusts to the new environment.

Domestically, recovery is likely to be slow as long as banks, households and the Government are taking action to repair their balance sheets. But the MPC stands ready to provide further stimulus as and when required to keep the economy on track and inflation at target. My own view is that we could do more right now – but should do so cautiously so that we can stop or accelerate in line with the outlook for output and inflation. Of course, the UK banking system will also play a crucial role in our economic recovery. One clear lesson from the crisis is the importance of having a properly functioning financial sector, efficient in allocating savings to consumption and investment. However, a debate has been growing - is regulation itself directly responsible for restraining credit and hence limiting economic growth?

Nevertheless, I remain optimistic that UK GDP growth will pick up gradually in 2013, as some of these headwinds abate. In recent weeks some of the large international tail risks have eased in the US, the euro area and in the Far East. And financial market sentiment has improved, increasing investors’ appetite to hold risky assets. Domestically, it seems likely that - in the absence of further shocks - inflation will remain closer to target over the next two years than over the recent past, which should help support real income growth and consumption. And the Funding for Lending Scheme (FLS), launched by the Bank of England and HMT last summer, has contributed to a significant reduction in banks’ funding costs and falls in lending rates – although a pick up in lending to the real economy will take time.

In December 2012 the FPC recommended that the FSA take action to ensure that the capital of UK banks and building societies reflects a proper valuation of their assets, a realistic assessment of future conduct costs and prudent calculation of risk weights. And that firms should raise capital or restructure their balance sheets if such actions revealed that capital buffers needed to be strengthened. Some commentators have argued that these recommendations will stifle lending growth at a time when the FLS is trying to promote it. I strongly disagree. Let me explain why.

Downside risks remain. The challenges posed by the banking crisis and sovereign indebtedness in the euro area will be difficult and take many years to resolve, despite the policy measures announced so far.

First and foremost, the FPC is not trying to prevent banks from taking risks. If we stopped all risk taking in the financial system

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the economy would grind to a halt. It is an essential part of what financial firms do as part of allocating funds between competing needs. But it is crucial for stability that the risks banks take are known, proportionate and properly managed. Second, an extra pound of capital does not mean a pound less of lending. Rather, capital is a source of funding and can be used to support lending. In my view, the aims of ensuring a strong and resilient banking sector by encouraging more capital, and supporting lending and economic growth through the FLS, are mutually supportive, not conflicting.

takes measured risks through well-judged lending and other financial services. Financial markets are not there to line the pockets of the participants. They exist because there are huge social and economic benefits from the services they provide. I believe most of the industry understands and accepts this. We need to focus on policies which encourage those benefits. Recent policy measures, including the FLS, have the side effect of giving banks breathing space in which to reinforce their balance sheets. It is important that banks take advantage of this. I believe that the various policy measures introduced in the UK will help get the UK banking sector back to a position where it can support our economic recovery.

Instead of worrying about the perceived costs of regulation, there should be more focus on the benefits of a safer banking system that

UK Financial Services in Europe – Opportunities and Threats Howard Miller, Director of Policy and Public Affairs, The CityUK The UK as an international financial services centre has benefited from the European Single Market in many ways. Indeed, the UK’s preeminence as a global financial centre rests to a significant extent upon its participation in the European Union and access to the Single Market, and UK-based firms with an international outlook take for granted participation in the Single Market and regard this as a key factor in the continuing attractiveness of the UK as

a destination for investment. The facts speak for themselves: •

The rest of the EU is the UK’s largest export destination

•

Nearly 38% of the UK’s trade surplus in financial services arose from trade with other EU Member States in 2011, compared with 25% arising from the US

•

Over 40% of euro foreign exchange trading takes place in the UK

TheCityUK’s recent report on Driving Competitiveness found that: •

Access to markets in the EU was a core reason for choosing the UK over other financial centres in over 40% of the UKpositive investment decisions

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•

In over 45% of UK-positive investment cases, decision makers cited access to skilled staff, including EU nationals, as one of the core reasons for choosing the UK

to the Single Market; a banking union will have its rules set by the EU, and union members therefore cannot make rules in their own right: but the Commission is equally clear in its view that banking union is a step on the road to a full economic and monetary union inside the EU – which poses questions as to how to preserve non-discrimination as full economic and monetary union progresses.

The UK’s long-term economic success depends on its ability to deal with the challenges we face in competitiveness, global trade and advancing the Single Market. It will be no surprise to hear that TheCityUK enthusiastically endorses advancing the Single Market in financial services as a priority objective of UK policy. Advancing European competitiveness needs to underpin the Single Market and we should challenge the current reliance on legislation and regulation as the primary means of developing it.

London’s situation, hosting Europe’s financial centre from outside the closely integrated banking union core, poses significant questions. There are competing pressures to be close to the ECB as lender of last resort. The ECB has already said that transactions cleared in euro should move to the eurozone, which the UK has challenged in court. It is hoped that the creation of the Single Supervisory Mechanism (SSM) will not hinder the current positive relationship between the UK and eurozone supervisory regimes.

Banking union in Europe was being explored well before the Prime Minister’s commitment to a referendum was announced. TheCityUK’s Seminar on Banking Union found that the steps taken so far do not pose unmanageable threats or tensions for the UK’s financial sector’s position or its place within the EU. Nor did they pose immediate hazards as regards the integrity of the Single Market: equally however, they are only the opening stages in a process over a much longer timescale. Later stages could well reveal threats and tensions that could not easily be held in check. It is important that the UK continues to positively and proactively engage as the remaining stages of banking union are completed so as to ensure the integrity of the Single Market.

A single bank resolution scheme and a single deposit guarantee scheme are intended to follow the SSM but will involve further, potentially difficult negotiations as they entail deeper fiscal integration. The Commission expects to publish its new proposal for common resolution funds in June 2013. It says that the new resolution authority or resolution fund should be in place before the end of the current European parliamentary term in June 2014. It is no surprise that the EU, and the UK’s relationship with it, is a priority for TheCityUK. The issues of banking union, the future of the Single Market, the much trailed In-Out referendum on UK membership, and the UK’s Review of the Balance of Competences, all provide reasons why the industry must get its views over to the policymakers both early and often.

Notably, a number of safeguards were agreed to preserve the Single Market, including a nondiscrimination obligation, a duty to protect the Single Market and the use of ‘double majority’ voting at the European Banking Authority. Nondiscrimination is a core principle – but one that may prove difficult to preserve. The European Commission and ECB have been clear that banking union would not discriminate against any member of the EU, and would be subject

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The role of the equity markets in the crisis and after Alderman Alan Yarrow

2013 may mark a turning point for equities. With equity indices enjoying January rallies and many returning to their pre-crisis levels, what role did the equity markets play in the crisis and what does the future hold?

response to the crisis. Solvency II, for example, attaches a higher risk factor to equities than it does to debt, making it less desirable for insurance companies to hold equities. The combination of a retreat by long-term institutions combined with the burden of new regulation, closed down the equity markets during the crisis. The Government effectively crowded out the equity market.

Risk-taking is the foundation of equity appetite in the UK. We were inherently a risk taking nation, built on piratical foundations. In recent years government regulation has encouraged holding sovereign debt. Equity investors are optimists, they consider the upside. Debt investors are pessimists, they consider the downside.

The Kay review of the UK equity market was the Government’s response to short-termism, a factor which arguably exacerbated the global financial crisis. It seems bizarre that the review, which made 17 recommendations, focused exclusively on the equity markets and ignored the debt markets entirely. The global financial crisis was a debt-led crisis fuelled by excessive lending in what Minsky would call speculative euphoria. Unlike the equity-led dot-com bust of the same decade, the global financial crisis was systemic. It cannot have escaped people’s notice that regulation of equity markets is tougher than it is for debt markets yet it was the debt markets that put us so close to financial meltdown. The dreaded Financial Transaction Tax proposed in Europe is another example as it won’t affect government debt.

Throughout the ‘80s and ‘90s equity markets boomed. This saw equities become a successful way to resolve some of the problems of the pension fund deficit. During the global financial crisis not only did equity markets fall, the impact of Quantitative Easing meant that yields on government bonds also declined, resulting in a worsening of pension fund deficits on two fronts. Government interference in investments has widened the gap between pension fund assets and liabilities; a problem that will worsen when rates inevitably rise. Another time bomb comes in the form of zombie companies that banks have allowed to exist, and which restrict their new lending. This will lengthen the time it takes to get out of recession where previously a write-off, whilst more painful, was immediate.

At present there is a disparity between the yields on equity and debt combined with a misallocation of cash towards the debt market. These pools of cash could help the rally already witnessed this year to gain momentum. Whilst 2013 may not conventionally be thought of as ‘lucky’, the year of the snake may just prove to be a ladder for a bullish year for equities.

A reduction in the risk appetite of major banks and institutions has engendered a new paradigm in which there is a reduced equity exposure. The reduction in appetite for equities has been compounded by the regulatory

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The Carol Sergeant Interview Simon Hills

Carol was a Court member of our Company and a member of the prestigious Liikanen Group looking at the future structure of European Banking. She has had a successful and varied career in financial services – currently she has a number of non-executive positions and chairs the whistle blowing charity, Public Concern at Work. Simon caught up with her shortly before the release of her report on Simple Financial Products. and the right, well-trained and motivated people. But there was a different attitude to flexible working and women, which the new CEO was seeking to address.

How did you get into financial services in the first place? I studied modern languages at Cambridge and was interested in banking as a career. But the investment banks I contacted said it wasn’t their policy to recruit women. The clearing banks were a bit more accommodating but wouldn’t put me on their fast track graduate programmes, and the Bank of England made me a much more interesting offer anyway. I started in the international division, and had spells in the European, markets and regulation areas of the Bank. I also studied for an MBA whilst there.

Did you manage to change that? As the senior Lloyds sponsor on diversity and work/life balance, I imported the flexible working practices that I had developed at the FSA. If you encourage and help people to work flexibly whilst still meeting their objectives, you will get happier people and better professional outcomes. It always works. The Capital Requirements Directive requires banks to set targets in respect of ‘underrepresented genders’ on boards. How do you feel about quotas?

Banks and bankers are coming to grips with the implications of splitting the FSA. But I know you had a hand in setting it up in the first place?

Undoubtedly the equal opportunities legislation made big differences to my generation and we may need compulsion in the end. But for now we need better information on why women don’t progress more in big organisations and serious action plans. What is measured gets done!

When the incoming Labour Government decided in 1997 to merge the alphabet soup of different regulators, I was the Bank of England lead on the project team that built the FSA from scratch. And then it was my job to help motivate and prepare colleagues moving from the Bank, and later to lead the change management project to build a new culture as the FSA took in people from eight different public sector bodies.

Have you got any tips for our younger female members? Don’t under-estimate yourself, don’t assume others will notice you so, grasp opportunities, get yourself supportive and sympathetic mentors and work with people you like and respect. But that applies to men just as much as to women!

Having been the first woman on the FSA board you then moved to a very senior position at Lloyds. Was life in the private sector any different from the public sector? Not really. Any organisation needs a long-term strategy

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Women on Boards of Financial Services Companies

Henrietta Royle, CEO of Fanshawe Haldin and Karina Robinson, Principal of Robinson Hambro, are both Liverymen. Henrietta helped found the Steering Committee of the 30% Club and Karina is involved in Lord Davies’s Women on Boards initiative. put together a Steering Committee of senior, mostly City, women to develop a strategy and business case for persuading chairmen to commit publicly to an “aspiration” of having a 30% female Board by 2015. Over 60 chairmen of the largest corporates and professional services firms have joined the 30% Club. (Research shows that 30% is the percentage where new types of members cease to be outsiders within the group and are able to impact decisions as part of the whole).

The recent track record of most companies with respect to board diversity of any kind has been poor. In 2010, only 12.5% of FTSE 100 directors were women. The FTSE 250 was even worse and remains so. When challenged, the standard response from chairmen was a lack of suitably qualified women. Yet over the last 10 years, lots of work had gone on to identify and present qualified women through a number of fora. Despite this, progress had been glacial.

Alongside this, Mervyn Davies issued his report drawing out the detail of business case for gender diversity on boards and recommending that the FTSE 100 should be aiming for at least 25% female membership by 2015. The difference in the two numbers is that although his report sets out the case for 30%, he felt that doubling the percentage in 5 years was more realistic.

Just over two years later, 17.3% of FTSE 100 directors are women, down from 17.4% at the end of 2012, and since last March, 34% of appointments have gone to women, down from 49% as at the end of 2013. Eight FTSE 100 companies have 30% or more female board directors, including Standard Life, and 19 (down from 27) have over 25%, including Lloyds, HSBC, RBS, Aberdeen Asset Management, Experian, Sage, and Admiral.

The coming together of these two initiatives has been galvanizing, notwithstanding the recent slippage, and Mervyn’s commitment to keeping the pressure up has been vital, as has the Government’s strong support. What is pleasing is that many of the big banks and insurers are leaders in this area. Their chairmen, particularly Sir Win Bischoff, are now public cheerleaders for women on boards and are keen to talk about the impact on the quality of discussion and decision making as a result of having a diverse board team, without needing to resort to quotas. A number of these companies are now working with professional services firms through the 30% Club to look at how they can improve the retention of female talent in the executive pipeline.

So why have chairmen suddenly discovered qualified women? Two things happened in 2010, co-incidentally, but happily: firstly, Mervyn Davies, was asked by the Government to come up with some proposals. Secondly, Helena Morrissey of Newton Asset Management realized that the demand side was where the new effort needed to be. She

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A Stock Exchange Museum?

Brian Winterflood, founder of Winterflood Securities, and Court assistant

In terms of expertise and all matters financial, look no further than the City of London. Day to day, in most aspects, we’re as happy as Larry and can find all the answers we need. So what’s missing? Well, lots of things - like City culture, history, our physical market places and our memories. In short, we do not have a Stock Exchange Museum. It is 200 years overdue and if we do not get on with it, much more will be lost.

So how do we put it all together? The first tranche is to recruit 25-30 Founding Fathers/Mothers, people whose names are synonymous with the growth of the Stock Exchange over the past 50 years. These Founders will have their portraits in the main hall of the museum – a blue plaque in their lifetime. Once the Founders are on board we can start on general fundraising with gold, silver and bronze tranches in appropriate parameters, and recorded for posterity. Joe Public can subscribe but I do not envisage any entrance fee – who knows? We also have to get the Government involved but so far the response has been fairly negative.

We will not be recording the longest stock exchange history as Antwerp appears to be the oldest, with records dating back to 1460 (things really started to happen when the Dutch set up the Dutch East India Company in 1602). Apparently London did not get going for another 90-odd years and then only on an ad hoc basis at Jonathan’s Coffee Shop in Sweetings Alley: but nothing formal until 1720 with the South Sea Bubble. Brokers and jobbers (Wins is the last jobber) did not formalize until 1773 when the Stock Exchange was set up – unregulated until 1801.

Upon inception the name will be “The National Stock Exchange Museum” to incorporate the provincial exchanges and their histories. Later, once we have got other extant exchanges on board, ie the Baltic, Lloyd’s and currency exchanges, we will re-christen it “The Financial services and Education Centre of the UK” (hopefully it is one stock exchange venture that the EU might consider worthy of a grant).

But where are we in setting up the museum? Well, we have a charity name and number, bank accounts in place and various personnel ready for the off, an accountant ready to look after the books and a project manager for the early stages. There are lots of promises of memorabilia, although I would rather not open the door to those at present as we have nowhere to store anything.

It is an exciting project and one that will need all the help you can give, but not yet. There is a lot to do before I send out begging letters – I just want you to be prepared.

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What skills and opportunities are there for current and retired bankers to bring to the running of charities?

Professor Paul Palmer, Associate Dean for Ethics, Engagement and Sustainability at the Cass Business School, City University London The Charity sector in the UK has some 200,000 registered organisations with the different national charity regulators and there are an estimated further 500,000 civil society organisations. The registered charitable organisations range in size from a thousand to incomes of over a half billion pounds. Clearly size will reflect complexity but all these organisations need financial skills and that is where people like bankers can really deliver value in society.

charities have investment assets which need careful management if they are to produce an income whilst also retaining their long term capital value. Clear financial expertise is needed as many trustee boards lack this expertise. The principal motivation for becoming a trustee is the work of the charity. However, the legal responsibility of charity trusteeship is on a par with being a director of a company and should not be taken on lightly. Bankers can make a real difference here by providing sound and prudent leadership in empowering a board of trustees to make financial decisions. Trusteeship is unpaid but a tremendously worthwhile experience in adding to the value of life.

It’s not about being a business but it is about being business like! While charities are not in the business of making a profit neither are they there to make losses. They are about achieving their aims and mission as economically, efficiently and effectively as possible. Understanding and managing cash flow for example is just as important in a charity as in a commercial business. There is also a myth that charities do not pay tax: tax affairs in charities from gift aid to VAT are complicated and need careful management.

There are some 600,000 paid jobs in the sector. For bankers considering a change in career taking up a paid role in charity administration can be equally rewarding in enriching life experience. Whether unpaid or paid the charity or civil society sector offers tremendous opportunities. However, bankers should also recognise that it is not all “one way traffic” while charities desperately want your financial skills they also want you to be in tune and empathetic with their work. Charities can equally be frustrating and the desire to scream out “this is not how we do it (did it) at…” might be true but then the charity and its staff and supporters are not a bank or bankers!

Many financial management practices from costing through to budgeting and business plans are the same in charities as for commercial organisations. While financial accounting principles in charities are different based on “fund accounting techniques” rather than for profit these can be easily learnt and understood. Charities are not always about raising funds – some

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Lombard Appeal Update

Frank Moxon, chairman, provides an update on progress with the Company’s £1m charity fundraising appeal Everybody can help The £1 million Lombard Appeal target approximates to £1,460 per Company member (or c. £1,220 plus Gift Aid which is £25 per month over four years). If you would like to make a one off or monthly donation please

contact the Clerk. Alternatively, there are lots of other ways in which Freemen and Liverymen can support the Appeal. Our more advanced projects are presented alongside. Do join in or suggest others.

Mansion House Dinner – 25th July 2013

and services at the event (with a percentage going to the Appeal) and are keen to hear from anybody who can provide a free venue.

By kind arrangement of the Lord Mayor, Roger Gifford, past master of the Company, and in his presence we will be holding a fundraising dinner at Mansion House. Open to both members and outsiders, the evening will also present opportunities to showcase and promote the Company’s charitable work. Further details will be published in due course but please do save the date in your diary. We are interested to hear, via the Clerk, from anyone who can provide sponsorship or auction lots such as tickets or boxes at sporting or cultural events, one-day internships, cases of wine or anything else you can think of.

Bread Tin Initiative Simeon Williams, working with Bread Tin, a charity that provides matched funding, coaching and mentoring to young philanthropists, aims to establish multiple teams of ten Associates who will each donate £1,000 (£16 per week plus Gift Aid) during the next 12 months. Each team’s £10,000 total will be match funded by a donor/mentor with the £20,000 thus raised and any additional project work that the team performs benefitting a charity chosen by it in partnership with the Charity & Education Committee. We already have three £10,000 donor/mentors secured and one team of Associates formed. If you or your firm would like to take part as either a team member or a donor/mentor please contact the Clerk.

Clothes Swap Meet

Merchandising

Liz Field and team are organising a ladies only Vintage Swap Meet for late 2013. Attendees may donate an item of clothing to the Lombard Appeal or exchange it for a replacement item. There will be changing facilities, drinks and canapés and plenty of room to network and have fun. We are in talks with corporate sponsors who will provide additional goods

Max Asmelash leads a team developing the first WCIB branded goods since the neck tie, details of which we hope to release soon. If there is a particular item that you have always wanted to see sporting the Company crest or colours do let us know.

The Worshipful Company of International Bankers

The Schools Essay Competition Alex Rottenburg reports on the Awards Ceremony Approximately 100 pupils, parents, and teachers from sixteen schools (from the less affluent boroughs around the City), plus various members of the Company, assembled at ING’s London HQ for the WCIB’s Essay Competition prize-giving (subject – “Did London benefit overall by hosting the Olympic Games costing over £9bn?”). We enjoyed an excellent, not to say inspirational, introductory speech from Gerald Walker, ING’s CEO of Commercial Banking, UK, Ireland & Middle East: he made the point that having a privileged background or a private education (he had neither) were not prerequisites for a good banking career, but hard work was! The prizes were presented by the Master, the whole process ably orchestrated by Tony Rhodes and Jean Stevenson, with the Clerk in watchful attendance.

The overall winner was Ellie Chapman, a remarkably poised 16 year old from The Charter School currently studying Spanish, Economics, Maths, and History, and planning to read Economics and a language when she goes to university, which university she is not yet sure of but it will be one of the Russell Group! Her essay, which answers the question in the affirmative, is not only very well written but also demonstrates an able use of different research sources. Talking to various pupils, parents, and teachers whilst consuming the very good nibbles and drinks provided by ING after the ceremony, it was evident that all those taking part had not only found the whole thing to be great fun but were very proud to be there that evening. Your roving scribe met some impressively confident youngsters who managed to be calmly assured without demonstrating the slightest hint of arrogance, and was told by all that the competition had not only been enjoyable but inspirational and aspirational as well!

The Mansion House Scholarship Scheme Liveryman and Company Founder James Tree

Company invites each of the scholars to attend the Annual Banquet and five of this year’s scholars were present at the banquet at Guildhall in February.

The Scheme exists to fund scholarships for students and young business executives from overseas to travel to the United Kingdom to study or to undertake training or work experience in the financial services sector. It was established by a previous Lord Mayor in 1998 and is funded primarily through donations by City Livery Companies – over sixty of whom now support it, many on an annual basis.

Some one hundred and twelve scholarships have now been awarded by successive Lord Mayors, with recipients selected from The photograph shows, from left to right, Alper Darendeli (Turkey), Azat forty-eight countries. The Abdibekov (Kazakhstan), The Lord Mayor – Alderman Roger Gifford, The selection is in the personal Master – Mark Garvin, Ivan Prieto (Colombia), Liber Jaime (Mexico), Justin Keh (Singapore) gift of the Lord Mayor and this year Lord Mayor Roger Gifford hopes to appoint up to ten scholars from some of the countries The Company is a strong supporter of the Scheme which he is to visit. Whilst most scholars study for and makes an annual donation. The Company Masters degrees at UK Universities, some attend also appoints Liverymen to be mentors to each of training course or undertake internships with firms the scholars for his or her time in the UK, offering based within the City of London. friendship and professional advice. In addition, the

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The 2012 Lord Mayor’s Show

Random recollections from Frank Moxon on a memorable day with the Company float Notwithstanding our position as 106th Livery Company, Past Master Roger Gifford’s mayoral year saw us promoted to 44th position in the Show. Our “Ethics in the City” vintage, open top, doubledecker bus was a joint effort with the BBA, AFB and CISI with each of whom we share members. At Austin Friars, fleeces, coloured according to organisation, matching multi-coloured golf umbrellas and bacon rolls were issued at 8am. Thence to the Museum of London area but, at first, no bus - orders had changed overnight unbeknownst to the parade marshals. After a mad dash to secure banners and install the 16F (Wood Green & Hornsey) Squadron, Air Training Corps band and our Senior Warden, Jane Platt, upstairs the bus moved off shortly after 11am.

when low hanging branches nearly swept away our Senior Warden and one or two band members. We then marched along Queen Victoria Street via Mansion House to our starting point. While a solitary parent did return their child’s chocolate coin because we were bankers the crowd generally cheered us along the whole route.

We proceeded, twirling open umbrellas and distributing chocolate coins, on both sides of the bus to Guildhall where Aldermen cheered us on. Subsequently at Mansion House we twirled and waved at a beaming Lord Mayor. Thence along Poultry, Cheapside, Ludgate Hill and Fleet Street to Embankment for a rest, packed lunch, and time to admire other floats and reflect on the moment

After setting the bus to rights the Clerk (Tim Woods) led us home, clearly overcome by his last Lord Mayor’s Show, in the wrong direction towards Smithfield. This is always a fun day out and provides an important interface between our industry and the wider public. Do sign yourself up for next year.

The World from St Mary-le-Bow

The Rev George Bush, Company Chaplain and Rector of St Mary-le-Bow in Cheapside The Lord Mayor (and Past Master) has thrown down a challenge to the churches in the City to assist business to navigate the demand for a more ethical City. Churches are well placed to do this; in fact sustainable church communities tend to be entrepreneurial, with diversified income streams which do not simply rely on generosity and donation. I have been Rector of St Mary-le-Bow since 2002 and a very proud successor of Canon Ed Newell, the first chaplain of the Company. I came to the City from the East End (or City fringe) and can bear witness to a feature that the 2011 Census reveals – that there is more religious conviction where people are poorer and worship less and less faith where people are more affluent and worship in larger numbers. It’s a very British conundrum.

St Mary-le-Bow has a proud tradition of dialogue, beginning in 1964 when few issues were aired cogently and in public, let alone any challenge to faith. We now specialise in issues with some economic or governmental twist and especially with matters (taxation, investment, food distribution, fairtrade etc) which most nearly affect the developing world. Priests are called to general omnicompetence –I am an amateur plumber and I know a good deal about stonework and plaster – and that can encourage one to forget the need for expertise and for onward referral. The seventh Lord George Principle (To decline any engagement for which you are not competent unless you have access to such advice and assistance as will enable you to carry out the work competently) is a very salutary lesson in the need to realise the limits of one’s competence in pastoral care and in business administration – for clergy there can be a need for humility and for the ability to ask for help.

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The 2013 Banquet

Bernard Strange, Deputy Editor, reports on a good evening

Over 450 members and guests attended the Company’s Annual Banquet at the Guildhall on February 5th. Senior Warden Jane Platt welcomed everyone and gave an up-date on the Company’s activities over the past year. The Lord Mayor and Past Master of the Company, Roger Gifford, spoke of the diversity which is a key element of the strength of London and the City, and the contribution that international banks make to the economy. The Master, Mark Garvin, covered some important features of the Company such as Fellowship, Education and Charity and spoke of the initiatives underway to improve the Company’s Governance and Member Experience. He congratulated the winners of the Company Trophy (CVHQ and 306 Field Hospital) and the Lombard Prize. The Joseph King Memorial Trophy, a new award made possible by the generosity of Ann King, was presented to Frank Moxon as the member who, in the opinion of the Court, has made a significant contribution to the Company during the preceding year. The Master also announced

that Tim Woods is standing down as Clerk and expressed his gratitude for all that he has done for the Company. The Principal Speaker was Sir Winfried Bischoff, Chairman of Lloyds Banking Group and a Member of the Company. He spoke about the changes in the banking industry since he began his career with Chase Manhattan Bank in New York in 1962. He mentioned International Expansion, which accelerated after the Second World War and which London in particular benefited from; Regulation, which has increased - much has been written about “light touch” regulation and its role in the expansion of London environment; Banks’ Business Models changed as they became larger, the range of activities which they undertook increased - new instruments were created, leverage increased and the Model became more complex to manage; Culture changed, as evidenced by recent mistakes through either active wrong-doing or poor judgement. The recent past shows us the opportunities and challenges.

Photographs courtesy of Jeff Jones Photos

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The Worshipful Company of International Bankers Regulations PART 1 – CONSTITUTION AND GOVERNING BODY

1.1 The Company shall consist of a

from the Court. Court Assistants could,

Master, 3 Wardens (one Senior, one

at any stage, agree with the Master to

Middle and one Junior) Past Masters,

step down from the Court. All former

Assistants, Liverymen and Freemen.

Court Assistants would be appointed

The Company, at its discretion, may

“Honorary Assistants” and would not

also admit Honorary Members it may

normally attend Court Meetings but

deem appropriate.

could be invited to do so by the Master.

1.2 Masters of the Company shall on

1.4 New Court Assistants will be elected

vacating the office of Master remain

out of the Livery at a Meeting of the

members of the Court for a period of

Court. The election of Liverymen to

4 years thereafter and shall retire from

the Court will be by application from

the Court at the end of such period

the Liverymen when they are notified

of time, subject to the discretion of

of vacancies. Each Liveryman must

the Court. Past Master’s would be

then seek 10 sponsors from the Livery

appointed “Court Emeritus” and would

and submit their application and CV

cease to attend Court Meetings but

to the Court for consideration. Court

would continue to receive the Minutes.

Assistants who are not Liverymen

“Court Emeritus” should meet with

when elected must agree to progress

the Master each year to be updated

to Liveryman at the earliest opportunity.

on Company proposals so that their experience can be used to steer the

1.5 In principle, all Chairmen of the

direction of the Company.

Standing Committees will be selected from the Court of Assistants as will their

1.3 Court Assistants will be elected for

Deputies. However, it is recognized

an initial period of 4 years and then

that in some instances, Chairmen or

may seek reelection at that point for a

Deputies who are exceedingly well-

further 4 years. They may do so again

suited to the role of the Committee and

at the 8 year point but if they have not

have proven their dedication to the

been appointed to Junior Warden by

Company, may be appointed from the

that time, they will normally step down

Committee and elected to the Court.

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Tim Woods, the Company’s founding Clerk, looks back… It was a Dark and Stormy Night. The good ship Dawn Strider was thrashing across the Channel racing to France and the crew was huddled together in the cockpit. Clifford Dammers (Skipper) and Joseph King were discussing the plans to instigate a Guild for bankers. “What will the Guild do?” I innocently asked. Fast forward another year, same scenario, similar conversation but this time Joseph said “We’re looking for a Clerk”. “What does a Clerk do?” I asked and the rest, as they say, is history. Following interviews with James Tree, Sir Paul Newall and Angus MacLennan, I was appointed Acting Clerk and James Tree kindly arranged for an office to be made available for the Guild in an attic in Bengal Court. I was then presented with a cardboard box with the Guild papers in and introduced to James’s staff who had agreed to help me

(I didn’t have any)! What a learning curve! What a journey! Guild to Company without Livery, full Livery Company and then Royal Charter and all within 6 years - from just over 200 members to almost 800 members now. What an absolute blast it has been! One of the most demanding but enjoyable jobs I have ever had and I will never forget my time at the Company because it has been a real pleasure and privilege to serve you, the members. Throughout my Service career I had always found that it was the people that I worked with and for that could make the biggest difference between a meaningless job or worth getting up in the morning for. You have certainly ensured that it was the latter and I will retain many memories of your kindness, generosity and patience. Gaye and Ankita have been stalwarts and both have been a real asset to me and the Company. I wish you and the Company every success in the future and I do hope that you will all continue to support the new Clerk and the Company in the years ahead.

Nicholas Westgarth, the new Clerk, looks forward… My first words as Clerk in the ‘The International Banker’ are “thank you” to everyone in the Company who has made me feel very welcome since I started at Austin Friars in January. The feeling of Fellowship is almost tangible and it has helped me enormously in my first few weeks. Fellowship was greatly

in evidence at the Annual Banquet; a great way for me to see the Company at a high point of its year. All the activities of the Company and Trust are supported by the Clerk’s office. As the membership and activities of the WCIB have grown there has been a consequent growth in the role of the Clerks; a major challenge for me will be to see how Gaye, Ankita and I can balance our various tasks in order to best serve the Company. Callers are always welcome at 12 Austin Friars or contact me by e-mail: clerk@internationalbankers.co.uk

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The Membership Committee

Robert Fenner, Chair, describes what it does and future plans Our membership is strong and well supported. Membership numbers to the end of January were very positive at just under 700 members which is very close to our target for the full year (which runs to October). We are also extremely pleased that we have seen both consistent growth in the number of new members joining us and a very high renewal level for existing members (over 95% renewed for this year).

In conjunction with the Events Committee we also hold events through the year to support our membership drive. These include our new member drinks events and educational events which are particularly targeted at the Younger Members but which attract all ages. We have been particularly pleased by the growth in the Younger Members Group with some 150 younger members who are particularly active. Many of the new applications we receive are from those who are under 35 and this bodes very well for the future of the Company. The Membership Committee is a vibrant committee and we always welcome new ideas. If any existing member would like to become involved in the Membership Committee then please contact us and we will welcome your further involvement.

The Membership Committee is of course always looking for new members and new means to attract further members. We currently rely upon introductions from our existing members as the main route for referrals of new members. Your support in growing our membership is therefore key.

Stephen Kemp It was with great sadness that we learned of the death of Stephen Kemp in January this year. Stephen joined the Company in 2006 and progressed to Livery in 2008. He was a staunch supporter of the Company and the Lord George Principles for Good Business

Conduct. He was a member of the Finance Committee and helped with the Lombard Prize until the onset of his illness but remained committed to the Company and attended many events and functions. He will be sorely missed.

List of New Members joining between December and February Dr Gulnara Khaidarshina

Ms Gesche Moeller

Mr Jeremy Takle

Mr Francesco Carobbi

Mr John Shield

Mr Jainesh Mehta

Mr David Furlonger

Mr James Cobb

Dr Theodore Roosevelt Malloch

Mr Paul Morrison

Mr Peter Hewitt

Ms Jane Campbell

Mr Alan Barclay

Mr Marcus Killick

Mr Christopher Willmott

Miss Annabel Daws-Chew

The Worshipful Company of International Bankers

Your Associate Committee Compiled by Jordan Buck, Deputy Editor Welcome to the Associate pages of the International Banker magazine. These articles are designed to introduce you to the diverse range of activities that the Associate Committee offer to Members and Freemen of the WCIB. The Associate Committee was set up to focus on facilitating the entry of younger members into the Company and to represent their interests on the wider Standing Committees. Each person that you see in the photograph below has created and executed at least one standalone event this year and has also participated in the planning and execution of wider WCIB activities. From dinners to seminars, I would like to thank all of the Associate Committee members for their hard work.

From left: Jordan Buck, Laura Whitehead (Chair), Daniel Yates, Selina Chotai (Vice-Chair), Edward Ellerington

I look forward to seeing you at all of our future events and please do not hesitate to contact us. Laura Whitehead, Associate Committee Chair laura.e.whitehead@hsbc.com If you are interested in having a senior mentor please get in touch for further information selina.chotai@barclays.com.

At this point in the year I would like to encourage you to attend the upcoming events organised by the Associate Committee, in particular the Member to Master Series, which kicked off with the Cavalry and Guards Club event in March and will culminate in joint ceremonies for those Associate members interested in taking the journey with fellow Associates.

We encourage Associate Members to submit an article or photos for this section of the magazine. Photography courtesy of Barclays Photography Club - thanks to Neil Cordell & Michael Gamer for generously volunteering their time.

New Freemen of the City

New Members

Congratulations to these Associates on receiving their Freedom of the City of London:

Welcome to the following new Associate Members:

Kerttu Kulasepp Prashant Basanagoudar Chetan Champaneri

Jonathan Morris Diana Umbarila Jainesh Mehta Camron Joseph Jenni Bianchi Riccardo Macale Alistair Fullerton

New Freemen of the Company The date of the next Freedom ceremony is to be confirmed. Those eligible will be contacted by the Clerk.

Alan Barclay Ali Latif Irina Ons Vilaboa Elena Prokopjeva Aanand Venkatramanan Christopher Halas Bruno Campana

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Past Events Pensions seminar

to the regular sort as a rather engaging party game got underway: guests were given five cards, a different illustration on each, and tasked with procuring five of the same through barter and blandishments (I was charmed out of mine far too early). This was followed by a spot of acting as Eleanor Mason Brown, David de Vynél and Mark Marlowe performed for us under the rubric of murder most foul. Pewterers’ Hall served as a handsome backdrop and all profits went to the Lord Mayor’s Appeal 2012.

On 10th October the Associate Members attended a Pensions talk kindly given by Senior Counsel Louise Howard at Taylor Wessing’s sumptuous offices in New Street Square. With stunning views over the City there was a short time for networking and a catchup with fellow members. Louise then talked us through her role within Taylor Wessing followed by an in-depth view on the current Pensions market along with her thoughts on the impact of Auto Enrolment. She also gave a view on her predicted changes to the Pensions market, and to close she took challenging questions from the eager audience.

By Robin Black Speed Networking Armed with business cards, the Associates enjoyed an evening of speed networking on 29th November. The Associates rotated in small groups around senior Liverymen Angus MacLennan, Michael Kirkwood CMG, Bob Wigley and Brian Winterflood MBE. Against the clock the senior members shared their vast experience within the banking industry with the Associates.

Louise kindly stayed after her talk and engaged with members at the post-event drinks provided by Taylor Wessing. Overall an interesting, informative and engaging evening was had by all attendees.

The aim of the event was to encourage integration between the Company’s junior and senior members and to provide a platform for Associates to learn from the distinguished careers of those more experienced than them. Throughout the evening the senior members offered advice, anecdotes and lessons to the Associates.

By Mark Henthorne Young Inter-Livery Agatha Christie party Touted as an evening of drinks, elegance and disorganised crime, the Younger InterLivery Group’s Agatha Christie party on 7th November secured a colourful crowd, including a cadre from the Eccentric Club, outfitted in lounge suits and as villains or victims. Entirely unvictimised by the pomegranate martinis until they ran out, the crowd gamely switched

Angus told anecdotes from both his early

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career and his rise to Co-Head of Merchant Banking at Fortis. Michael discussed his work as NonExecutive Director of UKFI, and spoke about his valuable lessons to achieve success. Bob encouraged the Associates to pursue their desires. When asked how he managed his time as Chairman of four companies he advised dealing with emails immediately by responding, deleting or forwarding to somebody else. Brian shared his experience founding Winterflood Securities and promoted adherence to the Lord George Principles for Good Business Conduct.

On the 5th February, fourteen Associates convened in a suitably located public house (Corney & Barrow’s next to Guildhall) to spend sixty minutes meeting and conversing with both new and old friends. For those not accustomed to Company events, this provided an opportunity to be introduced to fellow members, Freemen and guests, and to forgo the experience of standing alone in the Old Library before supper. Corney & Barrow were kind enough to offer some space and some refreshments, and the warm group of people provided a stark contrast to the wind and drizzle outdoors. We marched into Guildhall, confident, focused and together, ready to enjoy the evening that lay ahead. There was also an opportunity to enjoy the delights of Vingt Quatre after the banquet, for those still hungry for networking.

After the speed networking, the Associates withdrew to the Attic Bar on the 48th floor and enjoyed drinks overlooking the City. We are most grateful to the senior members for their time.

By Jordan Buck

By Daniel Yates Pre-banquet drinks Only a few years ago, when I attended my first Annual Banquet, I marched into Guildhall confident, focused and alone. As the Associate membership grows in both strength and numbers, this experience becomes ever less necessary.

Future Events For the second year running the Associates Committee will be hosting “Dinner with a Twist” with this year’s venue set to bring out extreme culinary experiences. Last year’s event was a great success with 12 diners braving the dark at Dans Le Noir to enjoy surprise menus served by blind waiters. These events always turn out to be great networking opportunities for newer members of the

Company and all Associates are welcome to join. In addition to this event, the Associates Committee is also looking forward to hosting a “Trooping the Colour” event, another “Wine Tasting” evening and additional dates for the diary to be announced in due course. By Edward Ellerington

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Fellowship and the International Banker

In the age of networking Frank Moxon discusses one of the key aims of the Company The 2012 Membership Survey drew comments from some who wanted improved networking opportunities and others who thought some networkers too aggressive. None mentioned fellowship, one of the Company’s key aims, which embraces and extends beyond mere networking.

Good networking should never cause embarrassment or offence. Nor should it be onesided. Successful networkers invest for the longer term and know that payback does not always come directly from those to whom the original approach was made or favour given. My first boss in the City taught me that people tend to do business with contacts whom they respect professionally. More importantly, they also recommend them to others.

Fellowship brings benefits but also responsibilities. Senior International Bankers should, of course, enjoy opportunities to network with their peers. Ideally, they should also interact with, educate and assist those Company members who are younger or less experienced. They in turn, having received such kindnesses as they learn, improve and master their trade, should do the same for those who follow them. This cycle is virtuous provided that nobody feels obliged, nor should they be asked, to give to others beyond a reasonable measure. Fellowship makes us all somehow equal while still respecting rank, status and personal space. It fosters an unselfish and inclusive brotherhood.

Fellowship, an unselfish activity, is therefore both a rewarding investment and a great aid to networking, arguably a more self-serving one. Combining the two creates the best of both worlds – a constructive and creative partnership that assists and promotes the greater good. Practiced properly, fellowship is also a natural adjunct to the other key aims of the Company, charity, education and promoting the profession.

The City Quiz

Tony Sharp, Clerk of The City of London Ward Beadles and a great authority on the civic City, presents the first part of an extensive test of your City of London general knowledge The Questions are given multiple choice answers all of which are also informative about the City and its institutions but there is only one correct answer offered. Participants might like to try it over ‘at first glance’ and then set about doing some research to see how they did. Answers with explanations on page 29. 1. Freemen of the City have which rights? a. The right to join a Livery Company. b. The right to be married at St Paul’s Cathedral. c. No rights as such. d. The right to vote in the City.

4. How long does a Sheriff serve in office? a. One Year. b. Two Years. c. Three Years. d. Five Years.

2. How many Sheriffs does the City have? a. One b. Two. c. Three d. Four.

5. What is an indispensable qualification for being a Sheriff? a. Must hold a Legal Qualification. b. Must be a Liveryman. c. Must hold an Arrest Warrant. d. Must be an Alderman.

3. How does one become a Sheriff of the City? a. Appointment by the Queen. b. Election by the Liverymen. c. Appointment by the Lord Mayor. d. Election by the Guildhall.

6. Where does a Sheriff live for their term of Office? a. Mansion House. b. Guildhall. c. Old Bailey Court House. d. City Magistrates Court.

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7. To be Lord Mayor one must have been? a. Over 35. b. A Christian. c. A City Sheriff. d. A City Councilman.

12. How long does a Lord Mayor’s term of office last? a. One Year. b. Three Years. c. Five Years. d. Seven Years.

8. To become Lord Mayor one has to be? a. Appointed by the City Common Council. b. Elected as one of two by the Liverymen. c. Appointed by the Queen. d. Elected by the City Residential and Business Electorate.

13. How many Livery Companies are there? a. 101. b. 108. c. 110. d. 112.

9. The Lord Mayor is admitted to office on which occasion? a. The Lord Mayor’s Show. b. The Silent Ceremony. c. The Michaelmas Common Hall (September). d. The United Guilds Service at St Paul’s.

14. How many Companies have Halls? NB some share so count additionally into total a. 39. b. 44. c. 48. d. 54.

10. The Lord Mayor resides for the term of office in? a. The Livery Hall of his Company. b. The Guildhall. c. The Mansion House. d. St Paul’s Chapter House.

15. Heads of Livery companies have a variety of titles. Which is not one of these? a. Prime Warden. b. Mistress. c. Upper Bailiff. d. Master.

11. T he Lord Mayor’s Show processes from Guildhall to which place? a. St Paul’s Cathedral. b. The Royal Courts of Justice. c. Westminster Abbey. d. Buckingham Palace.

Sailing Club Spring Update Liveryman Kerttu Kulasepp

organise a sailing weekend - this would be a great opportunity for novices to learn more about sailing and for experienced crew to polish team synergies ahead of upcoming races. Cowes Week will be held between 3rd-10th August – subject to sufficient interest, we would be taking part either on separate days or throughout the week. The last two regattas of the Bank Series are Spread Eagle Regatta on 31st August-1st September and John Lewis Regatta on 12th-13th October. All regattas named above are held in the Solent.

The Company Sailing Club is starting its second season. As promised, we have more regattas and events planned for you. Continuing the tradition established last year, the Company will participate at the Bank of England Regatta on 25th-27th May, with the prize-giving dinner held at the Royal Corinthian Yacht Club of the Isle of Wight, Cowes. Last year was hugely successful for the Company, which is why we would like to repeat it and beat it. For those of you that cannot make it to the May sailing weekend, another racing opportunity arises on 22nd-23rd June at the Portcullis Regatta. In July, subject to interest and availability, we would like to

Great sailing skills cannot be achieved without training and practice, which is why we would strongly encourage our members to take up Royal Yachting Association courses, such as the Day Skipper and Yachtmaster Qualifications. In association with the Little Ship Club, we will also be organising a few socials in Central London, so watch the space. Should you be interested in taking part in any of the above-mentioned regattas or training courses, please express your interest to not miss the boat!

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The Art Group

Frederique Pierre-Pierre, Chair

The Company’s Art Group offers a number of wellreceived events to its members. It started its life with a visit to one of the most popular contemporary art fairs in London: Frieze. We were guided by two talented gallerists who gave us a unique insight into the latest art trends and upcoming artists. Our second event took us to the very exciting Deutsche Bank Contemporary Art Collection in London. The tour led by Alistair Hicks was organised so that members could roam around the art at their leisure with Alistair on hand to comment on the numerous artists and pieces on display – see article below.

themed dinner was accompanied by an exhibition and auction of works of both internationally renowned and emerging artists, commissioned by CAS. The next event is a tour of two to three galleries, close to the City, in May. Members can meet with artists on show and spend time discussing their motivation and source of inspiration. The evening will finish at the Zetter restaurant in Clerkenwell for drinks followed by dinner. In our last event we will visit a couple of artists studios, to experience their work and craft, a unique way to step into their world. Those wanting more information about the group should email me on frederique.pierre-pierre@db.com

Our last event was the Contemporary Art Society Annual Gala Dinner. This champagne reception and

Employing Art

Alistair Hicks, Senior Curator, Deutsche Bank The art concept is constantly evolving. For the last fifteen years the Guggenheim Museum and Deutsche created a partnership in the form of the Deutsche Guggenheim in Berlin. After many successful exhibitions and commissions, this has come to an end and in April the Bank will have its own Kunsthalle in Berlin, which will make shows with galleries and other partners from all around the world.

Deutsche Bank has sixty thousand extra members of unpaid staff – the works of art on their walls. They are scattered over 928 of their offices across 45 countries. Since the 1970s the Bank has proved that it really does not buy for investment, but rather to make a more stimulating environment for its employees, and of course, clients. The physical collection, one of the best collections of works on paper in the world, is only the most visible part of Deutsche’s art program. The Bank collects drawings, photographs and prints, indeed any artwork on paper, as artists work through their ideas on paper. These works are accessible in another very basic way: they are cheaper than most other works of art. The Collection is an example of how the Bank is engaging with what is happening in the world.

The success or failure of the art concept is ultimately to be judged by the staff and their involvement in the arts. When the artist Keith Tyson hung a new painting in the Bank’s London headquarters over 400 members of staff came to ask him questions. A thirty-year art policy has paid dividends to Deutsche Bank by producing art-enthused employees, employees who in turn enthuse their clients.

The Worshipful Company of International Bankers

A River Journey A member

The Mekong River rises in Tibet and flows through China, Myanmar (Burma), Laos, Vietnam before reaching the sea in Cambodia. It is one of the world’s great rivers – 4000 km or 2500 miles long. We travelled it from Northern Thailand to the old capital of Laos – Luang Prabang – a journey of two days with an overnight stop at a riverside lodge in the jungle. The long tailboat carried about 30 people in comfort at 20 knots with awnings against the sun. Why did we enjoy it? The journey goes through lush jungle with coconut palms and bananas, past remote villages, through mild rapids - the pilot threads his way between rocky

outcrops. The scenery changes often and is entirely undeveloped. Luang Prabang is a good city to explore – a UNESCO world heritage site. Further downstream in Vietnam and Cambodia it is a wide slow river with wooden houseboats, market boats and full of life. We went in February during the dry season for winter sun. There is a proposal to dam it so don’t wait. One of the world’s great wild rivers may be enjoying its last few years of freedom. Lots of information on the internet (key in “Mekong” and “Laos”) and from travel agents (we went with Audley Travel).

The World around us courtesy of The Week

“In ancient times cats were worshipped as gods: they have not forgotten this” – Terry Pratchett, UK Novelist

“If a cluttered desk is a sign of a cluttered mind, of what, then, is an empty desk a sign of?” – Albert Einstein

“You are what you do, not what you say you’ll do” – Carl Jung

“We look at the present through a rearview mirror” – Marshall McLuchan

“No pleasure is worth giving up for the sake of two more years in a geriatric home in Weston-super-Mare” – Kingsley Amis.

“Life is a melodrama: only art is real” – Andrew Lytle, US Novelist “Fish and visitors stink in three days” – Benjamin Franklin 28

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Gaye’s Events Diary Looking Back

Last autumn was busy with a variety of events:

Ian Taylor CEO of Vitol was an amusing and down to earth speaker in November. He commented that oil traders always got it wrong.

Terry Smith, CEO of Tullett Prebon was predictably an entertaining speaker on what was wrong with fund management – quite a lot it seemed – fees too high, portfolios too diversified.

Notis Mitarachi, a Company member and Deputy Minister of Development in the Greek Government speaking at breakfast on the 9th November painted a fairly upbeat picture of Greek recovery, questioned slightly by one of the guests.

The Visits to the Foreign & Commonwealth Office in October and November 2012 were very popular – perhaps we all saw ourselves as diplomats manqué! We saw the India Office Council Chamber, the Secretary of State for India’s Office which had two doors, one leading into a cupboard which apparently a few visitors who had lost the plot seemed to have mistakenly used! The Ambassadors’ waiting room where Their Excellencies’ waiting time depended on why they had been summoned, the Foreign Secretary’s Office, and of course the famous Grand Staircase.

At breakfast on 28th November Angela Knight CBE, CEO of Energy UK, previously CEO of the British Bankers Association gave a fascinating insight into what went on behind the scenes during the financial crisis. She also made some practical comments on the way ahead if London wants to retain its role as the world’s leading financial centre. (Personally I think she should be running the country).

Answers to the City Quiz

10.c - The Mansion House.

1.c - No rights. Exclusive ‘rights’ were abolished in 1835.

11.b – The Royal Courts of Justice

2.b - Two. Originally one for Middlesex and one for the City. At least one is an Alderman.

12.a - One Year.

3.b - E lection by the Liverymen. Takes place at Midsummer Common Hall (June).

13.b - 108. There are five other guilds and companies but these are NOT of Livery.

4.a - One Year 5.b - M ust be a Liveryman. Has to be proposed by the Court of their Company.

14.b - 44. Glaziers Hall is shared as is the Launderers Hall and Scientific Instrument Makers Hall by those WCs and Farmers and Fletchers also share one Hall

6.c - Old Bailey Court House.

15.b - Mistress. Courtesy title of a partner only.

7.c - A City Sheriff.

If you have scored 10 or more – well done. If less, more research needed !

8.b - E lected by the Liverymen. At Michaelmas Common Hall (September) 9.b - The Silent Ceremony. ‘Admission of the Lord Mayor’ - The Friday before the Lord Mayor’s Show (November).

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2012 concluded with a tour of the Mansion House and tea with the Lord Mayor (our past Master Roger Gifford). We saw my favourite dining hall in London - The Egyptian Hall - the wonderful Harold Samuel art collection and the Plate Room; the voluptuous silver gilt centre piece would be perfect for my dining table!

2013 began with the Banquet at Guildhall followed by Patience Wheatcroft, the distinguished financial journalist, speaking at an evening Reception at the City Club on “A Tale of Two Cities: Westminster and the City of London”, and a presentation on how to progress through the Company from “Member to Master” at the Cavalry and Guards Club on 14th March.

Looking Forward

20th

MAR

24th APR

7th MAY 22nd MAY

5th

JUN

20th March Private evening view at the Queen’s Gallery, Buckingham Palace – “Northern Renaissance from Durer to Holbein”. The evening includes a short talk on the exhibition, time to wander at leisure through the Gallery and a discount in the shop.

JUN

27th June Evening Reception for Liverymen of the Company at Barclays, Canary Wharf, hosted by Peter Estlin. Opening remarks by Sir David Walker, Chair.

25th

25th July Fund raising dinner for the Company at the Mansion House.

27th

JUL

24th April Exclusive visit to Mansion House including a talk on the Harold Samuel Collection, an opportunity to view it, and lunch.

18th

SEP

7th May Private afternoon visit to the Tower RNLI Lifeboat Station. 22nd May Evening Reception at the British Bankers’ Association. Speaker Anthony Browne, Chief Executive. 5th June Evening private visit to Dr Johnson’s House including a talk by the Curator.

18th September Court Installation Dinner at Drapers’ Hall. Guest speaker Sir Nigel Wicks, Chair of the BBA.

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Front Cover Photograph courtesy of the City of London Corporation. ÂŠClive Totman 2012