Neal Johnson

Positions held

Feb 2015 – Present Independent Commodity Consultant, specialising across multiple commodities Financial and

Physical.

2003 – Jan 2105 Standard Bank Plc Position, held from Nov 2011 – Managing Director, promoted March 2012 (now classified as

Executive) - Head of Physical Commodities Management Unit, part of the Risk function.

Main Responsibilities:

To manage and oversee the daily operations of a team in providing high quality and reliable support services for the Global commodity business with teams based in London, Singapore, Shanghai and Johannesburg, The main business of which is to identify, understand and manage the risks present when the business wish to enter into physical transactions.

To ensure an effective control environment exists and appropriate operations controls & processes are in place on trade administration, physical trade contracts, logistic arrangements, settlements, storage control and reconciliation, VAT and other tax issues.

Manage any issues, incidents that arise. Escalate as necessary To play a key role in engaging customers, suppliers and trading counterparties to create and

sustain a controllable logistic process.

Engagement with metals warehouses and shipping brokers to facilitate safe storage and movement of products

Strong relationship management with counterparties and logistics providers Tracking of the Bank’s own inventory in various global storage warehouses Strong relationships with Insurance Brokers and Lead Underwriters

To lead and manage changes in policies, procedures and system enhancements to meet growing business needs (worked with Credit and Market Risk to create a Physical Notional Inventory Risk Framework – Key tool to control counterparty and commodity appetite).

Identify areas for improvement and sharing of best practices Manage headcount and budget process Develop the PCMU function, create a strong global PCMU brand. Ensure a consistent global

approach is adopted across all geographies. Ensure the interface between PCMU, the Business and the support areas is understood and

is effective. Create monthly global MI report that gives a clear overview of the “current” activities going on

in the Physical Commodities business, including, but not limited to, oversight of all KRI’s and KPI’s.

Team management responsibilities Overall and day to day management of PCMU Work closely with senior management team within PCMU Ensure team members have the required knowledge and skills to perform their role Communicating strategy, updates and other information to the team Set team objectives, and provide continual review and feedback of performance throughout

the year. Perform Annual Appraisal of all team members and provide input into remuneration and

promotion processes.

Risk responsibilities

As a member of the Risk Exco Team work on strategic key initiatives as and when required. Communicate and contribute at the monthly Exco meetings Work with other areas of the Risk Function to ensure risks are understood and properly

represented when it comes to physical transactions.

Business manager - Global Commodities business 2006 – 2011 (Director level)

Commodities covered – Precious and Base metals, Energy (oil), UK Power (although we are not trading currently), Carbon (primary CER’s and EUA’s) various Physical Commodities.

Work with global business head and product / regional heads to help define strategy. Then prioritise before working on plans, budgets and delivery. Where necessary work on presentations to help with messaging to FO team and Support groups.

Work with the Support groups to ensure: They understand and support the strategy and can support it. An open dialogue is maintained at all times. Issues are raised and can be addressed (2-way). The very strong sense of “one team” within the commodities group is maintained.

Manage Budgets – costs, headcount. Reviewing cost both direct and indirect to ensure front to back ratios are kept at a reasonable level and within budget. Create reporting with the Finance team to help identify potential issues and make it easy for the global head and heads of each business area to review. Identify areas where cost savings can be made, e.g. electronic data.

Built reporting to ensure PNL estimates are provided daily and position sign offs are complete. Work closely with Desk Compliance Officer to ensure training, documentation (dealer mandates) etc,

is maintained to a satisfactory level across all desks globally. Working on trader surveillance tools with Compliance and Product Control. Help with New Product Process, coordinate with Support, IT, FO to ensure progress versus deadlines

are in line with expectations. Play an active role in the booking schema’s and support where necessary.

Work with procurement team on all new and existing contracts as and when required. Business sponsor for all commodity projects. I have set up a Governance Board to drive, deliver and

manage cross project dependencies and ensure the architecture team. Projects delivered and still in progress are.

PIMS – Physical Inventory Management System – In-house CAM (2) – Client Accounting and Payments Alloy – Multi Asset class Front Office Trading and Risk Management system Trading Tools – STP trading on exchanges and client e-commerce offering – Precious and

Base flow, touch screen trade and order capture system. Work with Operational Risk team to review operational incidents and KRI / KPI indicators. Arrange bi-weekly meeting for all senior members of the Commodities team to ensure information

about opportunities, ideas, balance sheet initiatives (e.g. optimisation = capital, tax) and any other relevant market news.

Support the Global Head of Commodities with any day to day issues or requests that require attention.

Build very strong relationships within FO and Support areas, globally. Work with FO and Coverage teams to ensure Client Revenues are recorded and reported accurately. Put monthly Exco report together with business heads.

2003 – 2006 – I managed the Global Commodities Operations team before being offered the Resource Banking Business Manager Role. This was for all Sales and Trading plus the Financing and Advisory areas.

Reorganised the global support model Built strong relationships with the FO Built a strong team with low staff turn over Put an IT roadmap together and delivered into a target model, component based architecture. Many

of the components are now live and are either in-house built or vendor based solutions and used by more than just the Commodities business.

Margin – Algorithmics – leverage CSA margin/collateral tool and create processes to support Base and Precious margin trading requirements.

Trinity – Base Metals FO and support

CAM – in-house cash account and payment system Metalsweb – in-house e-client offering Eclipse – Exchange Traded reconciliation tool, position and margin. SMART – LME matching

1988 – 2003 - Credit Suisse First Boston 14 years, Position - Vice President, Head of Front Office Support Groups During this period I had a very close association with anything relating to Commodities until January 2002

when the businesses were closed. I also had responsibilities for managing other areas /products within Operations and the Middle Office throughout this period. My main duties were:

September 2002 – March 2003 Plan and implement new Middle Office for the Fund Linked Derivatives Front Office. Project Manage, provide MI, progress reporting, escalation, implement procedures, training (matrix), improve control, assist with new system design and implementation and data migration and Manage newly formed team.

March 2001 – September 2002

Simultaneously managed 6 departments within OTC Operations (80+ staff in my area of responsibility)

Equity Derivatives (13 staff) – March 2001 – June 2002 Note Issuance (10 staff) March 2001 – October 2002 Fund Linked Derivatives (10 staff) October 2001 – October 2002 Trader Operations (30 staff) – March 2001 – October 2002 Commodities / Vault (21 staff) - until final wind down and vault closure January 2002. FX & Money Market (4 staff ) – Sept 1999 – October 2001

This involved 7 direct reports (one VP & 6 AVP’s) over a one and a half year period.

Equity Derivatives Note Issuance Fund Linked Derivatives Trader Operations

Scope of my role was to:

Look at processes, procedures with the department heads and identify weaknesses, assess risk, implement improvements and leverage off other departments where possible.

Identify technology improvements / synergies across departments Develop the team leaders (succession planning) Monition Key Risk Indicators (e.g. Nostros, Depots, Confirmations) across groups and ensure all

items were validated and in the process of being cleared / actioned. Sign off Client Money returns as and when required. Attend New Business meetings to provide input and feedback issues to my senior management. Monitor volumes versus FO business plans versus back office resource (i.e. if FO trade heavily

controls could be compromised in where processes are manually intensive) Full involvement with Budget process, salary reviews, bonuses and appraisals. Design and roll out of any systems or new “shared service” IT developments (implemented a Note

Issuance system, Equity Swaps system, Bullion Clearing system (included rolling into a new Entity (CSFB to CSFBi), web link for Bullion Clearing clients (built and released in 3 months) design of new Margin Trading System (prototype) and currently working on a new Fund Linked system)

Ensure teams had adequate cross training to mitigate risk during holiday / sickness (monitor Holidays across teams)

Key contact person during any Disaster Recovery situation.

Key point of escalation for any issues. Key member of the OTC Global Operations Management Team.

Precious Metals Role (more detail) Manage the Commodities area (Precious Metals and Energy (Oil/Power)) for the CSFBi and CSFB London

Branch Entities. (Oil trades were mainly Caps, Floors, Collars & some structured transactions. This business was also closed in 2002). Team of 21 Responsibilities included:

Settlements, documentation, Clearing, Physical (Vault), new business, structured trades, procedure reviews, pre / post audit reviews, balance sheet account ownership, front office liaison (global), Operations Strategy Team + other internal committees (e.g. projects), key contact for other FA&O internal departments, budget review and management for department, system design, testing and implementation, process and system reviews / recommendations for improvements, automation, design FOBO reconciliation tools and test, STP,

Ensure regular management team meetings were held and documented. Ensure all teams hold regular, documented meetings Ensure regular meetings with ORM dept (Ops Risk Management) Ensure quarterly Vault Audits were performed and documented Ensure monthly Insurance returns submitted (regular correspondence with global head of CS Group

Insurance) Arrange Bank of England gold auction cover/process with Front Office Provide support to my Peers (Management Team) Business Continuity representative for Commodities / FXMM group Meet new / existing clients with FO to market clearing and vaulting services Involved in various E-commerce initiatives Monitor all Key Risk Indicators (management tool) Develop future strategy for Clearing (location and procedures of new Vault facilities (these were in the

process of going live when CSFB decided to withdraw from the business (I did the business plan for this, potential to [triple] previous revenues) Relocated bullion vault from Bishopsgate to Vauxhall Played an instrumental role in the project to build new gold vault in Canary Wharf Located and in process on closing on large silver vault facility in Crayford when CSFB made the

decision to withdraw from commodities

External Committee Membership London Bullion Market Association Physical Committee Representative – Currently still a member of this

committee, I was invited back once I moved to SB Pcl. Chairman of the LBMA Automated Matching System Project Committee – Market Initiative – The system,

Aurum, was eventually delivered after CSFB’s departure from the market.

Prior Commodity related roles (some are still current) Manage a team of 14 personnel on Bullion Clearing & Settlement area/Currency Options/Bullion Global

Options settlement/Bullion Vault (includes settlement and confirmation processes) Global Head of Precious Metal Branch Operations (pre CSFBi integration project) Hold regular meetings with the overseas Bullion Operations sites. Discuss inter regional issues, local

issues, local projects, global projects, staffing issues, etc. Monitor the Control functions across Sites, ensure there are no potential risk areas, standardise processing Ensure procedures are updated and work flows are efficient as systems and functions change. Produce monthly MIS Hold regular meetings with team and maintain a good atmosphere/team spirit.

Audit Bullion Vault/keep in close contact with 5 personnel Liase with Clients / Branches, offering advice and solutions. Liase with traders, London, Zurich, New York, Singapore and Sydney Ensure spot, forward, lease and swap deals are processed ahead of any deadlines Ensure dealers positions are checked and agreed throughout the day, provide a snapshot P&L at the COB. Monitor margin clients throughout the day, liase directly with the clients calling for margin when necessary.

Correctly administer their accounts i.e. interest rates, settlement of interest, statements etc. Marketing - prospective clients and arrange for terms and conditions to be forwarded Ensure Invoices are settled and VAT issues have been addressed, prepare detailed quarterly MIS for

traders to review revenues from Clearing. Officiate fee structure Monitor Liquidity and related issues, Credit Risk Management, Market Risk Management (provide reports to

relevant areas) Monitor Physical Liquidity - Vault & Bank of England Arrange Physical Shipments Represent CSFB at the monthly London Bullion Market Association meetings Assist “New Business” with any Commodity related issues. Assist Legal and Compliance with any documentation relevant to Precious Metals. Monitor all investigations and ensure they are resolved in a timely manner Ensure trades are confirmed in an acceptable time frame. Monitor limits and overdrafts Monitor Loco Zurich accounts and agree them daily Monitor all suspense and commission accounts Ensure Options systems are updated correctly - rates (Vols, forwards, futures, spots, currency interest rates,

etc.) Ensure Exchange Traded Futures and Options Clearer’s statement is reconciled daily. Ensure all Currency options cash positions are rolled by forward traders Assist to resolve option related problems - systems Produce daily P&L indications from option systems Ensure all outstanding items identified by reconciliation area relating to the Bullion area are investigated and

resolved in a timely manner Ensure all Reconciliation’s are performed, both internal and external accounts i.e. premium accounts, inter

company accounts, nostros, realised p&l. Ensure Standing instruction and static data file are update correctly Ensure the appraisal process is completed successfully Assist with projects, prepare documentation / recommendations i.e. migration from one system to another,

integrate new front office system with settlement system, netting and compensation system, auto reconciliation and position system, developed current Bullion Transfer system, on the current project team for the LBMA to develop spec for the proposed Electronic Bullion Loco London Clearing System.

I was on 4 Project Steering Committees concerning major global developments within the Bullion environment. This was in conjunction with my Global responsibility.

Monitor the integrity of Budget allocations, monthly, globally.

Past positions which included managing the Bullion Ops area

Managed Currency Clearing area - responsible for making all currency payments on behalf of Clients, Branches and other areas of the bank.

Ensure correct interest rates are applied to current accounts Investigate all queries Install the XEU (3) Clearing system, involved visiting Belgium (SWIFT) and Luxembourg.

Put forward as the Credit Suisse Clearing Representative for XEU Clearing to the ECU Banking Association in Paris

Attended monthly meetings with the other London ECU Clearing Banks to discuss related issues including EMU.

Liase with our CHAPS clearer re costs, level of service, penalty claims and other related issues. Provide Money Market Desk with daily GBP position, circa 3:00 PM. Monitor Nostro accounts between London and Zurich and agree daily settlement figure Ensured Terms and Conditions were updated Initiate additional controls to reduce risk and errors. I also managed the Trade verification area who were

responsible for the final check of all Foreign Exchange and Money Market trades, the main duties were as follows:

Ensure all payment details were correct before payment. Verify the counterpart and other trade details were correct to the dealers ticket. Check Brokerage and arrange for payment to be made. Send out confirmations Work out the Interest amounts on deals with Discount Houses transacted throughout the corresponding

month and advise the dealers of the net figures for each. At this time we also checked all Bullion futures positions the clearer’s statement, initiating close outs and

payment of any margin, this role has since been automated and is performed by the futures area.

N M Rothschild & Sons – 1983 - 1988 Newcourt, St. Swithens Lane, London

Communications area for approx 1 and a half years. Two and a half years working in the Limits/Credit area. During this time I was responsible for advising the

Forex, Bullion and Money Market desks of the trading limits available to them in the different periods with various clients.

Position keeping – FX, coins and precious metals Prepared a weekly report and sent to senior management for review. It detailed all limit excesses, along

with proposals for resolution, the reason for the break and the period the break will be outstanding for.

I left in January 1988 due to the position that arose at Credit Suisse to further my career and broaden my knowledge.

1983 – 1988 -