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Corporate governance

The Board of Directors is responsible for promoting the long-term, sustainable success of the Group, generating value for shareholders and contributing to wider society. It establishes the Group’s overall purpose, values and strategy and ensures that these and the Group’s culture are aligned. The Board is also responsible for delivery of these within a robust corporate governance framework. Purpose, values and strategy are described in Section A2 of the Group’s Annual Report and the corporate governance framework is described in Section B4.

Corporate Governance header
Corporate Governance board

The Board of the Company and its subsidiaries are supported by the Group Corporate Governance Policy Framework ("the Framework"). The Framework provides key components of how the Board, assisted by its committees, govern the business of the Company. Application of the Framework is within the context of other requirements, such as applicable laws, the regulatory regime for deposit taking banks, the Listing Rules, the Articles of Association of the Company and the Disclosure Guidance and Transparency Rules. On appointment, directors are briefed on their duties and responsibilities as a director of a listed company and are thereafter provided with annual training updates.

Throughout each year Paragon Banking Group PLC (“PBG”) aims to comply with the principles and provisions of the UK Corporate Governance Code (“the Code”), as issued by the Financial Reporting Council. A summary of its compliance during 2022/2023 can be found in its Annual Report and Accounts.

The Board, in its deliberations and decision-making processes takes into account the views of the Group’s stakeholders and, where applicable, considers the impact of those decisions on the communities and environment within which the Group operates. While good corporate governance is important to the Board, so too is maintaining a reputation for high standards of business conduct in all of the Group’s operations, and management of conduct risk is a key part of the risk management framework. Section A6  of the Group’s Annual Report sets out information on corporate responsibility including the Group’s people policies, our involvement in industry initiatives, our commitment to customers and support for the community, environmental, social and conduct impacts. Paragon’s relationship with HMRC and the principles we apply to our tax affairs are also set out in this  section.

We also endeavour to maintain an open and transparent relationship with our various regulators, including the PRA and FCA.

Corporate Governance office

Subsidiary governance

A number of the corporate entities within Paragon are regulated by either the PRA and the FCA or solely by the FCA. PBG has oversight of these entities as part of its overall responsibility for the management of the Group and ensures that the Group’s values and standards in regulated spheres are met. The directors of PBG also comprise the Board of Paragon Bank PLC. The boards of both companies meet jointly in most circumstances. Oversight of Paragon Bank PLC, consequently, forms a core part of the board and committee meetings of PBG. This governance structure and approach ensures that Paragon Bank PLC adheres to the Code, as far as it is applicable to a subsidiary entity.

AGM and shareholders

AGM and shareholders

Leadership accountability

Leadership

Risk management

Risk management

Board effectiveness evaluation and training

Board effectiveness evaluation and training

Board committee structure

Committee structure

Regulatory disclosures

Regulatory disclosures

Articles of Association

Articles of Association