BCCI Inquiry

Terms of Reference: To enquire into the supervision of BCCI under the Banking Acts: to consider whether the action taken by all the United Kingdom authorities was appropriate and timely; and to make recommendations.”

Chair: Lord Bingham

Dates: Establishment: 16 November 2004

Report: 22 October 1992
Hansard Report to parliament:
http://hansard.millbanksystems.com/commons/1992/oct/22/bcci-bingham-report

Report: Product code: 101572
ISBN: 0102198934, ISBN13: 9780102198935, 230 pages, paperback 
Published by The Stationery Office in 1992
Description of the events which caused the public concern: The closure of BCCI by supervisory action on 5 July 1991 provoked widespread public concern. Some, particularly in the financial community and the press, criticized the UK authorities for not taking this action long before. Others, particularly depositors, employees and shareholders, criticized the closure as precipitate and unjustified. It was against that background of public concern that the establishment of an inquiry into the supervision of BCCI was undertaken.
 
In addressing the terms of reference Lord Justice Bingham considered five broad questions:
• What did the UK authorities know about BCCI at all relevant times?
• Should they have known more?
• What action did the UK authorities take in relation to BCCI at all relevant times?
• Should they have acted differently?
• What should be done to prevent, or minimize the risk of, such an event recurring in the future?'

Litigation:
http://www.publications.parliament.uk/pa/ld200001/ldjudgmt/jd010322/three-1.htm

Recommendations:
Among the recommendations Lord Bingham considered that statutory duty should be imposed on the auditors of banks to report to the Bank of England matters which were relevant to the fulfilment by banks of the criteria for authorisation in Schedule 3 to the Banking Act 1987.  This lead to the The Accountants (Banking Act 1987) Regulations 1994

Any follow up:
The Accountants (Banking Act 1987) Regulations 1994
http://www.opsi.gov.uk/si/si1994/Uksi_19940524_en_1.htm