Barclays 2013 Annual Report Download - page 229

Difficult decisions or dilemmas are referred initially to a business-level
committee of senior executives familiar with the reputation risk profile
and track record of their business area. If the issue is judged to be
outside the scope of their authority, e.g. due to the materiality of the
risk concerned or that it affects multiple business areas, then it can be
escalated to the Barclays Reputation Committee. In 2013, this
committee was re-designated a sub-committee of the new Conduct
and Reputation Risk Committee (CRRC) chaired by Barclays’ Head of
Compliance and comprising Executive Committee-level representatives
from Barclays businesses and functions. The CRRC reports to the Board
Conduct, Reputation and Operational Risk Committee (BCRORC),
which maintains Board-level oversight of non-financial Principal Risks.
The strategic review of the business in February 2013, explicitly
considered reputation risk. The focus was on how we deliver returns, as
well as what returns may be delivered. The analysis assessed each
business against a range of criteria, including market attractiveness,
competitor positioning, regulation, and reputation risk – which was
assessed using the lens of Barclays’ purpose and values. This review
incorporated the earlier review of reputation risk associated with
Corporate and Investment Banking business lines and resulted in
Barclays’ exit from some businesses, including the Structured Capital
Markets tax-related business unit. The view was that, while many tax
services provided to clients are not controversial, there were some that
relied on sophisticated and complex structures where transactions
were carried out with the primary objective of accessing the tax
benefits. Although this activity is legal, it was considered incompatible
with the Group’s purpose and published tax principles.
A further review of Barclays Wealth and Investment Management
identified over 130 countries in which the business would no longer
seek new clients. The review was designed to ensure alignment of the
business to Barclays’ purpose and values, reduce complexity and
ensure we are well-placed to compete in a wealth management
industry that has fundamentally changed.
On a more operational level, in 2013 we made the decision to drop
using premium rate telephone numbers in the UK. As part of Which?’s
campaign against the use of premium rate numbers, Barclays and
Barclaycard committed to switching from more costly phone lines to
local rate numbers, which are included in mobile phone packages and
are free for customers using a landline. Barclays was the first financial
services company to commit to do this.
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