Since the transfer to public ownership on 29 September 2008, Bradford & Bingley plc's ("B&B") governance structure has been determined by a framework document ("the Framework Document') agreed between B&B and its ultimate shareholder, HM Treasury. The Framework Document has been updated periodically to reflect changing circumstances and most recently was amended to reflect the establishment of UK Asset Resolution Ltd ("UKAR") as the holding company for B&B and Northern Rock (Asset Management) plc ("NRAM"). UKAR is responsible for ensuring that B&B and NRAM adopt and comply with the requirements of the Framework Document.
B&B operates in accordance with the terms of the latest version of the Framework Document "UK Asset Resolution Limited and UK Financial Investments Limited: Relationship Framework Document", which sets out how the relationship between B&B and UK Financial Investments Ltd ("UKFI"), acting on behalf of HM Treasury, will work in practice.
The Framework Document is intended to ensure that the relationship between B&B, UKFI, HM Treasury (as ultimate shareholder and the provider of financial support), and the FSA (as regulator), operates in the context of the ove-arching objective of protecting and creating value for the taxpayer, whilst paying due regard to the maintenance of financial stability and to acting in a way that promotes competition. The Framework Document requires B&B to deliver a strategic and funding business plan to achieve these objectives.
Further information concerning the principles set out in the Framework Document, how they have been implemented and how they can be monitored, can be found in the Annual Report & Accounts.
The Valuer issued his assessment notice in respect of shares on 5 July 2010 and this stated that no compensation is payable by the Treasury to former shareholders. Following the publication of this notice, former shareholders were given the opportunity to request that the Valuer re-consider his determination and after consideration of such requests the Valuer issued a revised assessment notice on 14 March 2011. The revised assessment notice upheld his original decision that no compensation is due to former shareholders. The matter has now been referred to the Upper Tribunal (Tax & Chancery Chamber) and further details can be found at the Valuer's website, www.bandbvaluer.org.uk.