This paper provides background and commentary on the Bank of England and Financial Services Bill which has its Second Reading in the House of Commons on 1 February 2016.Jump to full report >>
The UK’s system of financial regulation has been thoroughly reformed following the financial crisis of 2008, with the Bank of England (“the Bank”) being given a central role. The Financial Services Act 2012 gave the Bank wide responsibilities for financial supervision through a new body – the Prudential Regulation Authority. These increased responsibilities mean that the arrangements for the governance, accountability and transparency of the Bank have become more important. The Bill aims to make improvements in these areas. The Bill also makes some changes to the procedures of the Bank’s Monetary Policy Committee (MPC). It covers:
Some of the main measures contained in the Bill include:
The Bill was introduced into the House of Lords. There, it was the abolition of the Oversight Committee, the extent to which the NAO would be allowed to scrutinise the Bank and the abolition of the reverse burden of proof in the Senior Managers and Certification regime which received particular attention. A number of Government new clauses were introduced in the Lords covering the financial services regulation aspects of the Bill. More detail on the Bill’s stages in the House of Lords are in a separate Library note, The Bank of England and Financial Services Bill [HL]: Lords Stages.
Commons Briefing papers CBP-7476
Authors: Dominic Webb; Tim Edmonds; Djuna Thurley
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