Pro-forma Statement of Work Oversight of RBS - GIA verification of assets Statement of Work Ref: HMTS62ILot1/SoW005 “This document constvies a Satement of Wark forte purposes ofthe trsmework contrac in oepect GTAPA Spocast Services —Lot= Verification Servces set out nthe amended and restates ler Seted 20 March 2011 fom HM Treasury to ProewaterouseCoopers LLP. 36 agreed Io Dy Prcewaiemeusetoopers LLP PC") 0031 March 2011 (tn Lott Framework Agreement), ‘Any copied terme used but not otherwise defined inthis Slalement of Work shall have the feapecve meanings assigned to em inthe Lot 1 Framework Agosmant The services deserbed ‘he Satamant of Nok fhe. Vefleaion Oversight Services’) are Lot 1 Services fo be provided [ecardance wih the tems of the Lot | rarpework Agreement. 1. Seope of Work and Services 4.1 RBS Group intemal Aust IA) wi execute agreed upon testing procedures (AUP) inthe ext pase of he APA's voriicaton work, uC sob as Veriton Agent wil undertake [Erotersight role Verlcatan Ovarian” ovr the GIA esting on Beha cl he APA. \oritaton Oversight sto be dete as ongong suppor. review and enalenge ofthe curent ‘age of te testing process, ke not he supowsion or management ofthe GUA team caring futthetesing, 412 Inaccoreance wit the rol of Vatfcaton Agen, PaC wil 124 Assess he independence, knowledge and objctity of he GIA team prerming tne ‘eefcaton work 1122 Provide ongoing support and guidance lo he APA in relation to approach to testing fmendmante AUP and any terances which are agreed wih OVA 4123 Share AUP, designe during the na! planning phase, wth GIA in elation tothe ata felds GiA are equres t very 1.24 Transfer rlevan verifcabonkrouledge and experience to GIA based on Pac's venation expeence to GIA, 112.5 Provide ongoing taining, coaching, support ana guidance to GIA ang any reites tears foto othe AU's, For laioaon out oe ll bo imaod to guidance on [AUP and wil ot requre us to prove guidance onthe tepretaton ofthe APS ‘le and requirements, 1.26 Provide ongoing oversight of GIN verfeation work in caro assist the APA assess the extent of retince ha they can place on tho procedures at have been execs by Gia hat 1261 The procedures meetthe APA's objectives: 126.2 Mono ropres of IA estng gain! he GIA timetableimiesones ang 1269. Workwas donein an approprately objective ana independent manner 1284. Work wes ungertakenim ine with the AUP’ (cuBoct to where amendments hava been mace and agree to te erginal AUP), 41.265 Arevdence hasbeen reamed incase aadonal aveies arse rom the [APR and allow cement of r-peforance tobe undertaken, 286. Ensute work performed was appropriately reviewed enc challenges: ana + Atinange ! eoeervatone have been delhored tthe APA (cluding these Under the flerance osha) PROTECT - COMMERCIAL12.7 Review at tne fncings tom the GIA etre, incusing all rpors issued and work with the APAto deny ary themes or eaves at have arisen fom the testing ar the Implications for flue testing, 4128. Toconsiucively chalenge the GIA testing ple, project management and processes Inctuang, butt irate to 1284 1203 Reviewing progress agaist key milestones rowing chatenge io poet pans, tries and testg pans: and Proving ehalonge and comments figs and coservaons denver to Ine APAty GIA 128 Review of GIA audi under the annual Assurance Pian 2010 and 20) as required bythe Senome Rules nausing But not int 1204 1282 1293 1204 Understanding context and scope of each ofthe GIA Aus under the Assurance Pan Reviewing GIA working papers test scrips and resus and providing feedback onthe quay sna completeness ofthe wor prformms the [APA To work wih the APA to asses the mpleatone fur tating | Providing chalenge ana comment onthe content of te Assurance Pan and tne roling 8 mony panning process: and Assessing the ndependence,kxculedge and cbectiy of the GIA ears Crying ou the Aut onder he Assurance Pan 1.2:10 Provide supporto the APA inal ther aspects of Vreton incising, bu nt mked 12108 12:07 ‘Ad hoc or thematic eviews (s0@ 14 below Balyial review of PAD and GS fermaton and suits of any testing procecures undertaken, Scenario avai in rlaton tothe sensiviy ofboth the Expected Loss and (CD Valuation mosels based on he eect of potential erorsin tie PAD ana {GS mat are dented as pat the GIA testing, ‘Werke wan the Data Vaioaton team to understand the current ievelof ‘sulomated testing undertaken on toe PAD and QS art hop tne APA {assess what comfort they achive fem tis esting, Understanding and reviewing othe areas of Verticaton como ha he ‘APR current oles on, Including but nt Imtodo, Invasion Management reviews date valeaton, ang ether anata Yeview procedures (Wer Vorfeatonactrties) Undertating a risk assessment hese Vier Verification actives to assist, the APA n determining the creat level of Vereation comfor expected ane Reviewing curent lava of verteaton confor galne rm Verteaton ‘Tesing as Wider Voriteation settee vers Venoaton contort panes ‘rom to acuies to alow APA te undertana wnere any potent \ericaton cantor gaps arse wt we cary out ne Venicaton Oversight 13.4 Reviewing GI's working papers and proving feedback on quaity and completeness cof work performed tote APA, 1132 Discussion and son wih relevant RBS personne thi i expect to inchs bt it rotted o members of GIA APS Assurance andthe indwdual business Une ‘were testing is bang cared ot PROTECT - COMMERCIAL122 Reperrmance of slectes sample of GIN verticatin teeing. Tho extent of ie ‘performance willbe dependent onthe aly othe orga werk uneeraken an ‘he sample sie il be selected in conjunction wth @scussons wih the APA and 1134 Atending meatigs withthe APA andor GIA anor ther RBS personel where ‘eefcation testing s éscussed. This is expected include bul snot tod to ‘Weekly APA! GIA! PwC Vestication progress meetings ‘Westy APA/ Pw Verifcaton working group meetings [Atendance at meetings between APA andthe National Aust Ofice (NAO) ‘where requested 4344, Daly meeangs wih GIA Project Manager, 4345. Penoe meetings win each ofthe GIA sveam Team Leaders o answer (ques and ciscuss issues, 11348. Benodc mesings workshops wi the individual GIA stream undertaking the GIA tosng fo vansler krowledge ard answer quar asing, ‘Atendance at neal RBS mestings where requested Regular mestngs wn RBS APS Accutane, ard Understanding themate a hoe reviews que bythe APA which wil be covered by separate Slaterants of Werk. 1.4 PwC underiake certain adhoc raviews as equested ard agreed fom re ote wth mne APAby. 1.43 The APA. dentiy, wth PwC's asians, area in which a hoe vrifltion reviews are roqured. whi may inetude, but eno ited, the folowing ‘Areas idetfed as having known but unquantfiod errs Breaches a reas of own non-comphanee wih the Seneme Rules; “Thematic cross asset lasso” poo reviews [rea of concern deiiies based on the data submits by RBS nts {Garo Statements or Post accession Data. an 1441.5. Areas of ous ented by te nangs of any procedures performed to at, 4 i 1 142 Such eviews willbe scoped and agreed withthe APA identify the work to be Dorored on suth areas, Pail han dovelo 2 rst aged approach that Uses Sarees upon procedures io, where speropate 1421. Record processes and contols employed by RAS: 1422 ldnaty possible aternative ntepretatons of he Scheme Rus by RES ‘whereever 1442.2 Agree textng procedures and an appropiate sample size to determine invostgatve este 1424. Sample et the popuaton in question 4228. Assoas fangs to dont potentl Impact; and 1428. Roportinaings 1 APA 14.3 These ad hoc reviews wi be document in separate Statements of Wok 2, vere appropriate, planning documents, 2 Deliverables In undetaking the Verifiestion Oversight Services, PAC wl where appropri; = -Atond mectags: © Prove verbal and weton feedback 2 Produce writen reper n any. of the reperfomance testing performed at set out 3.4 above: end PROTECT - COMMERCIAL+ Prodvee other writen documents a8 required fo complete the scope ‘of work set out paragraph above Dependencies 3.1 Inpesorming he ative desesbed above. PuC have he following dependencies: 5:4 tnaly acoess to APA personnel in determining the scope, pry and reporting regurernents of any Advisory Matt, 3:12 tmaly access to APA innousa legal counsel together wit) any of the [APA's enteral opal evior (wnere engaged and ntuctd cy he APA rong to determine interpretations of the documentan flabag To RBS paticpaton nthe APS; ana 3.13 Smely accent ROS personne! and infrmation 32 The APA ayes that any of the adove dependences ae not met, Puc may not be able provide the Venoalon Overeght Servees and sesordnaly PwC wil rot bein Breech of contacto the exon that any falure to ot aelay in prowang Verfeaten Groright Services arises asa tes of any ofthe above’ dependences not bang Project Resources 411 PuC's team be ed by Peter Jtey a he engagement parmer. The key member (of Pete foam wi be arnes Hower (Parner, Jesica Neer (Sener Marager and Ee Lin Song (Manager, 142 Peter bringin urer resources to daver the Verication Oversight Servis ‘toed psuant tots Statement of Wor on an aa hoe bass as Yequres. The ‘peeled to vary between one and ve adeeonal persons Responsibilities of HM Treasury 51 Foc te avoidance of doubt, he folowing aco wit be perfome by HI Treasury, the FA and e APA (ot Pwo) dung the period coveres by Ps Statement of Work, Sd on which PwC may have depencences Bit provision of ata soured rom RS; and 512 Stereseof powers io provide azess fo RBS, thor personnel and data, Timetable 51 The GIA Verification Oversight Services shal be taken to have commenced rom 4 January 2041 82 TheGIA Veriton Oversight Services shall complete on 31 Decerber 2011 ‘Budget and biting 7 PwC's foce wil be calusted ona te and materials bass in accorsance with ie {ots Framewore Agreement, 72 A budget for Verficaton Oversigt Senices was prepared, excusing any Teperermance tsing, and the estimated cost provided fo te APA is range of 86,000 £5,000 per calendar month (excudng VAT}. ‘datonal work asthe scope ana bring ofthe procasures bocomet oa! 74 The budget le an estimate and actual cote il be mantored on a weekly bas. Invoioes wil be raged based on achat costs Incurea and variances fam mo tstmote provided to tne APA m 7.2 willbe clecuseed ns agrees ina te} manne” Location 8:1 Service willbe performed at Phipot Lane relevant RBS premise, and in Pa. PROTECT - COMMERCIAL9 Paragraph 9.3 of he Lot 1 Framework Agreement 9.1 PwC watnot be requied to provide any opinion, atesaton or other fom of assurance: Under generally aczepted ausing slancarde wih reaped fo he Services Ine Informaton upon whin De Serdees are based. The roceutes Pvc wil be performing pursuant to is Slaterent of Work ul not conatute an examination in ‘accordance wih general accoped auding standards 10 Modifications or variations to provisions inthe Lot 4 Framework Agreement 101 Not spatavi 11 Other requirements 111 Notapetcabe Accepted and agreed For and on behal of PricewaterhoussCoopers LLP Name, FARNESE Soratue. Liaise erase ¢ oe 2Lad 8 For and on behalf of the Commissioners of HM Treasury (ating through the Asset Protection Agency) are Bile, Guta sree... 8 Apew. 2a) PROTECT - COMMERCIAL