On 11 July 2014, the FCA and PRA published the final Terms of Reference for the review into the failure of HBOS plc (“HBOS”). The review, which was commissioned by the Financial Services Authority (“FSA”), started in   September 2012 following the conclusion of related enforcement proceedings. A report is to be published jointly by the FCA and PRA by the end of this year. The report will assess the FSA’s supervision of HBOS, the FSA enforcement investigations following HBOS’s failure, explain why HBOS failed, assess the management, governance and culture at HBOS at the relevant time. The review will assess HBOS’s systemic vulnerabilities over the relevant period, as well as its capital, asset quality, liquidity positions, management, governance and culture, and will make recommendations that have not already been covered in previous reports such as Northern Rock and RBS.

The final Terms of Reference are available at:

http://www.bankofengland.co.uk/publications/Documents/news/2014/tor110714.p df.