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Bank of England Act 1998

Type Public General Act

Publication 1998-04-23

Last updated 2025-11-30

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — Constitution, regulation and financial arrangements

Constitution and regulation

Reviews

1

(1) There shall continue to be a court of directors of the Bank.

(2) The court shall consist of the following directors appointed by Her Majesty—

(a) a Governor,

(b) a Deputy Governor for financial stability,

(ba) a Deputy Governor for markets and banking,

(d) a Deputy Governor for prudential regulation, and

(e) not more than 9 non-executive directors.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Schedule 1 shall have effect with respect to the court.

Functions of court of directors

2

(1) The court of directors of the Bank shall manage the Bank’s affairs, other than the formulation of monetary policy.

(2) In particular, the court’s functions under subsection (1) shall include

(a) determining the Bank’s objectives (including objectives for its financial management) and strategy.

(b) the functions mentioned in section 3A(2) (the “oversight functions”).

(3) In determining the Bank’s objectives and strategy, the court’s aim shall be to ensure the effective discharge of the Bank’s functions.

(4) Subject to that, in determining objectives for the financial management of the Bank, the court’s aim shall be to ensure the most efficient use of the Bank’s resources.

(5) Subsections (2) to (4) are subject to—

(a) section 2A (Financial Stability Objective);

(b) section 11 (objectives in relation to monetary policy);

(c) Part 1A of the Financial Services and Markets Act 2000 (objectives and strategy of the Prudential Regulation Authority).

Functions to be carried out by non-executive members

3

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Annual report by the Bank

4

(1) As soon as practicable after the end of each of its financial years, the Bank shall make to the Chancellor of the Exchequer a report on its activities in that year.

(2) A report under this section shall, in particular, contain—

(a) a report by the court of directors on the matters which it reviews, monitors or otherwise considers in the performance of its oversight functions (as defined by section 3A(2)),

(aa) a report by the court of directors on the activities of the Financial Policy Committee of the Bank, and

(b) a copy of the statements for the year prepared under section 7(2) and (2A) and the report of the Bank’s auditors on them .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A report under this section shall also contain—

(a) a statement of the rate or rates at which non-executive directors of the Bank have been remunerated in the financial year to which the report relates, and

(b) a statement of the Bank’s objectives and strategy, as determined by the court of directors of the Bank, for the financial year in which the report is made.

(5) The Bank shall publish every report under this section in such manner as it thinks appropriate.

(6) The Chancellor of the Exchequer shall lay copies of every report under this section before Parliament.

(7) The Chancellor may comply with subsection (6) by laying a document containing a report under this section together with a report by the Prudential Regulation Authority under paragraph 19 of Schedule 1ZB to the Financial Services and Markets Act 2000.

Revocation of directions under section 9H

5

(1) The court of directors of the Bank shall have custody of the Bank’s seal.

(2) The seal shall only be affixed to an instrument if the affixation has been authorised by the court or by a sub-committee of the court acting in exercise of delegated authority.

(3) The affixing of the seal shall be attested by the signature of—

(a) two members of the court,

(b) one member of the court and the secretary to the court, or

Financial arrangements

Cash ratio deposits

6

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Accounts

7

(1) The Bank shall keep proper accounts and records in relation to the accounts.

(2) The Bank shall prepare for each of its financial years a statement of accounts consisting of—

(a) a balance sheet as at the last day of the year, and

(b) a profit and loss account.

(2A) The Bank shall also prepare for each of its financial years a statement of accounts in relation to—

(a) income received and assets accrued by the Bank by virtue of its functions as the Prudential Regulation Authority, and

(b) expenses and liabilities incurred by the Bank by virtue of its functions as the Prudential Regulation Authority.

(3) In preparing accounts under subsection (2), the Bank shall be subject to requirements corresponding to the relevant Companies Act requirements, except insofar as the accounts relate to the Issue Department.

(4) The Bank may disregard a requirement to which it is subject under subsection (3) to the extent that it considers it necessary to do so having regard to the Financial Stability Objective.

(4A) In preparing a statement under subsection (2A) the Bank must comply with any directions given by the Treasury as to—

(a) the information to be contained in the statement and the manner in which it is to be presented, and

(b) the methods and principles according to which the statement is to be prepared.

(5) The Bank shall appoint an auditor or auditors to audit its accounts, including any statement under subsection (2) or (2A) .

(5A) The auditor's report on a statement under subsection (2A) must state whether the auditor is satisfied that the Bank has complied with the requirements of Part 3 of Schedule 1ZB to the Financial Services and Markets Act 2000 (Prudential Regulation Authority fees and penalties).

(6) As soon as practicable after receiving the report of its auditors on a statement prepared under subsection (2) or (2A) , the Bank shall send a copy of—

(a) the report, and

(b) the statement,

to the Chancellor of the Exchequer.

(7) The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such additional information relating to its accounts as the Treasury may specify in the notice, including information which the Bank has excluded under subsection (4) from a statement under subsection (2).

(8) The Treasury shall consult the Bank before giving a notice under subsection (7).

(8A) A direction under subsection (4A) or a notice under subsection (7) may be revoked by a further direction or notice.

(9) In subsection (3), the reference to the relevant Companies Act requirements is to the requirements to which the directors of a company which is a banking company for the purposes of the Companies Act 2006 are for the time being subject under that Act (except sections 412 and 413 (directors’ benefits)) in relation to the preparation of accounts under section 394 of that Act.

Compliance with directions under section 9H

8

(1) In section 1 of the Bank of England Act 1946, in subsection (4), (amount payable to Treasury in lieu of dividends on Bank stock), for the words from “the sum” to the end there is substituted “ a sum equal to 25 per cent. of the Bank’s net profits for its previous financial year, or such other sum as the Treasury and the Bank may agree. ”

(2) In that section, at the end there is inserted—

(6) In subsection (4) of this section, the reference to the Bank’s net profits for its previous financial year is to the profits shown in the audited accounts for that year less the amount of the tax charge so shown.

(3) In Schedule 1 to that Act (supplemental provisions), after paragraph 11 there is inserted—

(11A) (1) If, when a payment falls to be made under section 1(4) of this Act, the Bank’s accounts for the previous financial year have not been audited, the payment shall be made on the basis of the Bank’s estimate of the relevant amounts. (2) If an amount estimated under sub-paragraph (1) of this paragraph differs from the amount shown in the audited accounts, an appropriate adjustment shall be made to the next payment under section 1(4) of this Act to be made after the difference becomes apparent.

(4) In that Schedule, for paragraph 14 there is substituted—

(14) Any sum paid by the Bank to the Treasury in lieu of dividends shall be allowed as a deduction in assessing the Bank to corporation tax for the accounting period by reference to which the payment is calculated.

Supplementary

Consequential amendments

9

(1) In section 14 of the National Debt Reduction Act 1786 and section 32 of the Life Annuities Act 1808, for “deputy governor” there is substituted “ deputy governors ”.

(2) In section 55 of the National Debt Act 1870, the first reference to the Deputy Governor of the Bank of England shall be treated as a reference to a Deputy Governor of the Bank of England.

(3) In section 3(3) of the Bank of England Act 1946, after “this Act” there is inserted “ and the Bank of England Act 1998 ”.

Part II — Monetary Policy

Role of the Bank

Statements of policy by Financial Policy Committee

10

In section 4(1) of the Bank of England Act 1946 (power of the Treasury to give directions to the Bank), at the end there is inserted “ , except in relation to monetary policy ”.

Objectives

11

In relation to monetary policy, the objectives of the Bank of England shall be—

(a) to maintain price stability, and

(b) subject to that, to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment.

Specification of matters relevant to objectives

12

(1) The Treasury may by notice in writing to the Bank specify for the purposes of section 11—

(a) what price stability is to be taken to consist of, or

(b) what the economic policy of Her Majesty’s Government is to be taken to be.

(2) The Treasury shall specify under subsection (1) both of the matters mentioned there—

(a) before the end of the period of 7 days beginning with the day on which this Act comes into force, and

(b) at least once in every period of 12 months beginning on the anniversary of the day on which this Act comes into force.

(3) Where the Treasury give notice under this section they shall—

(a) publish the notice in such manner as they think fit, and

(b) lay a copy of it before Parliament.

Monetary Policy Committee of the Bank

Monetary Policy Committee

13

(1) There shall be a committee of the Bank, to be known as the Monetary Policy Committee of the Bank of England, which shall have responsibility within the Bank for formulating monetary policy.

(2) The Committee shall consist of—

(a) the Governor of the Bank,

(aa) the Deputy Governor for financial stability,

(aaa) the Deputy Governor for markets and banking,

(ab) the Deputy Governor for monetary policy,

(b) one member (to be known as the Chief Economist of the Bank) appointed by the Governor of the Bank after consultation with the Chancellor of the Exchequer, and

(3) The member appointed under subsection (2)(b) shall be a person who carries out monetary policy analysis within the Bank.

(4) Before appointing a person under subsection (2)(c) the Chancellor of the Exchequer must—

(a) be satisfied that the person has knowledge or experience which is likely to be relevant to the Committee's functions, and

(b) consider whether the person has any financial or other interests that could substantially affect the functions as member that it would be proper for the person to discharge.

(5) Schedule 3 shall have effect with respect to the Committee.

Publication of statements about decisions

14

(1) As soon as reasonably practicable after each meeting of the Monetary Policy Committee, the Bank shall publish a statement as to whether it was decided at the meeting that the Bank should take any action, other than action by way of intervening in financial markets, for the purpose of meeting its objectives under section 11 and, if it was, what the action is.

(2) If, at any meeting, the Committee decides that the Bank should intervene in financial markets, it shall also consider at the meeting whether immediate publication of the decision would be likely to impede or frustrate the achievement of the intervention’s purpose.

(3) If the Committee decides under subsection (2) that immediate publication of a decision would not have the effect mentioned there, the Bank shall, when it publishes a statement under subsection (1) about the meeting, publish a statement as to what action by way of intervening in financial markets the Committee has decided the Bank should take.

(4) If the Committee decides under subsection (2) that immediate publication of a decision would have the effect mentioned there, it shall keep under consideration the question of whether publication of the decision would still have that effect.

(5) As soon as reasonably practicable after the Committee has decided that publication of a decision which has not been the subject of a statement under subsection (3) would no longer have the effect mentioned in subsection (2), the Bank shall publish a statement as to what action by way of intervening in financial markets the Committee decided the Bank should take and when the decision was made.

(6) Publication under this section shall be in such manner as the Bank thinks fit.

Publication of minutes of meetings

15

(1) As soon as reasonably practicable after each meeting of the Monetary Policy Committee, the Bank shall publish minutes of the meeting ....

(2) Subsection (1) shall not apply to minutes of any proceedings relating to—

(a) a decision to intervene in financial markets, or

(b) a decision about the publication of a decision to intervene in financial markets,

unless the Committee has decided that publication of the decision to intervene would not be likely, or would no longer be likely, to impede or frustrate the achievement of the intervention’s purpose.

(3) Minutes of proceedings relating to—

(a) a decision to intervene in financial markets, or

(b) a decision about the publication of a decision to intervene in financial markets,

shall, if not required to be published as soon as reasonably practicable after the meeting, be published by the Bank as soon as reasonably practicable after a statement about the decision to intervene is published under section 14(5).

(4) Minutes published under this section shall record, in relation to any decision of the Committee, the voting preference of the members who took part in the vote on the decision.

(4A) The Bank shall exclude from minutes published under this section information which relates to proceedings of the Financial Policy Committee if the Bank considers that publication of that information would be against the public interest.

(5) Publication under this section shall be in such manner as the Bank thinks fit.

Functions of court of directors

16

(1) The court of directors of the Bank shall keep the procedures followed by the Monetary Policy Committee under review.

(2) In particular, the court's function under subsection (1) shall include determining whether the Monetary Policy Committee has collected the regional, sectoral and other information necessary for the purposes of formulating monetary policy.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information and reports

Power to obtain information

17

(1) The Bank may by notice in writing require an undertaking to which this section applies to provide the Bank with such information as may be specified in the notice, being information about the relevant financial affairs of the undertaking which the Bank considers it necessary or expedient to have for the purposes of its functions under this Part.

(2) A notice under subsection (1) may require information to be provided—

(a) in such form or manner as may be specified in the notice;

(b) at such time or times as may be so specified;

(3) An undertaking is one to which this section applies if—

(a) it has a place of business in the United Kingdom; and

(b) it falls within subsection (3A), (3B), (3C) or (3D).

(3A) An undertaking falls within this subsection if it is a deposit-taker.

(3B) An undertaking falls within this subsection if it is not a deposit-taker but it—

(a) falls within the subsector “other monetary financial institution”, as defined by paragraph 2.48 of Annex A to Council Regulation ( EC ) No. 2223/96 ,

(b) carries on a business of granting credits secured on land used for residential purposes,

(d) has acted as an agent in connection with arranging or managing the issue of a debt security.

(3C) An undertaking falls within this subsection if it is a financial holding company.

(3D) An undertaking falls within this subsection if it is not a deposit-taker but continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987 or a permission under Part 4A of the Financial Services and Markets Act 2000.

(4) The Treasury may by order provide which financial affairs of an undertaking are relevant for the purposes of this section, and may make different provision for different undertakings or classes of undertaking.

(5) The Treasury may by order amend subsections (3) to (3D).

(6) Before making an order under this section, the Treasury shall consult—

(a) the Bank,

(b) the Statistics Board,

(d) such other persons as they consider appropriate.

(7) “Deposit taker” means—

(a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7A) “Debt security” means any instrument creating or acknowledging indebtedness (including a government or public security).

(7B) Subsections (7) and (7A) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(7C) “Financial holding company” has the meaning given by Article 4(1)(20) of the capital requirements regulation.

(7D) “Undertaking” has the meaning given by section 1161(1) of the Companies Act 2006.

Reports

18

(1) The Bank shall prepare and publish reports in accordance with the provisions of this section.

(2) A report under this section shall contain—

(a) a review of the monetary policy decisions published by the Bank in the period to which the report relates,

(b) an assessment of the developments in inflation in the economy of the United Kingdom in the period to which the report relates, and

(3) A report under this section shall relate to—

(a) a period of 3 months, or

(b) such other period as the Treasury and the Monetary Policy Committee may agree.

(4) Periods to which reports under this section relate shall be successive, the first such period commencing on such day within the period of 3 months ending with the day on which this Act comes into force as the Treasury shall, after consultation with the Bank, specify in writing to it.

(5) No report under this section shall be published without the approval of the Monetary Policy Committee.

(6) A report under this section shall be published as soon as reasonably practicable after the end of the period to which it relates and in such manner as the Bank thinks fit.

Treasury’s reserve powers

Reserve powers

19

(1) The Treasury, after consultation with the Governor of the Bank, may by order give the Bank directions with respect to monetary policy if they are satisfied that the directions are required in the public interest and by extreme economic circumstances.

(2) An order under this section may include such consequential modifications of the provisions of this Part relating to the Monetary Policy Committee as the Treasury think fit.

(3) A statutory instrument containing an order under this section shall be laid before Parliament after being made.

(4) Unless an order under this section is approved by resolution of each House of Parliament before the end of the period of 28 days beginning with the day on which it is made, it shall cease to have effect at the end of that period.

(5) In reckoning the period of 28 days for the purposes of subsection (4), no account shall be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.

(6) An order under this section which does not cease to have effect before the end of the period of 3 months beginning with the day on which it is made shall cease to have effect at the end of that period.

(7) While an order under this section has effect, section 11 shall not have effect.

Supplementary

Interpretation of Part II

20

In this Part, “the Monetary Policy Committee” means the Monetary Policy Committee of the Bank of England.

Part III — Transfer of supervisory functions of the Bank to the Financial Services Authority

...

Transfer

21

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Supplementary provisions

22

Schedule 4 (transfer of functions: supplementary provisions) shall have effect.

Consequential amendments

23

(1) Schedule 5 (amendments of primary, and other principal, legislation consequential on the transfer of functions by section 21) shall have effect.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) If a reference in a relevant provision to the Bank is predicated on the continuing exercise by the Bank of any of the transferred functions, it shall, in relation to any time after the coming into force of this Act, have effect as a reference to the Authority.

(4) In subsection (3), “relevant provision” means a provision which—

(a) has effect before, as well as after, the coming into force of this Act, and

(b) is contained in a document other than an Act or an instrument made under an Act.

...

Status

24

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Liability

25

Power to charge fees

26

Power to channel information through agent

27

Consequential changes to banking bodies

Board of Banking Supervision

28

Deposit Protection Board

29

Supplementary

Interpretation of Part III

30

In this Part—

“the Authority” means the Financial Services Authority;

“transferred functions” means the functions transferred to the Authority by this Part.

Part IV — Miscellaneous and general

Miscellaneous

Qualifications of a designated agency

31

Listed institutions: exemption of transactions with Treasury

32

Closure of National Savings Stock Register to gilts

33

(1) The Treasury may by order—

(a) make provision excluding gilts from registration in the Register on and after a day specified in the order,

(b) make provision for the transfer to the books of the Bank of the entries in the Register at the beginning of the day specified under paragraph (a) which relate to gilts, and

(c) make provision for the transfer to the Bank of rights and liabilities of the Director of Savings in relation to the registration of gilts in the Register or any transaction associated therewith.

(2) The power conferred by paragraph (b) of subsection (1) includes power to make provision in relation to gilts which were not registered in the Register at the beginning of the day specified under paragraph (a) of that subsection, but which should have been.

(3) An order under subsection (1) may contain such consequential, incidental, supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

(4) Without prejudice to subsection (3), an order under subsection (1) may contain—

(a) provision requiring things done by, or in relation to, the Director of Savings, to be treated as done by, or in relation to, the Bank,

(b) provision requiring references in documents to the Register to be construed as references to the books of the Bank, and

(c) provision requiring certificates issued by the Director of Savings in relation to registration in the Register to be treated as issued by the Bank in relation to registration in the books of the Bank.

(5) An order under subsection (1) may—

(a) make different provision for different cases, and

(b) contain provision amending, or repealing or revoking, an enactment contained in—

(i) an Act, whenever passed, or

(ii) an instrument, whenever made, under an Act, whenever passed.

(6) In this section—

“gilts” means stock or bonds of any of the descriptions included in Part I of Schedule 11 to the Finance Act 1942 (whether on or after the passing of this Act); and

“the Register” means the National Savings Stock Register.

Provision of brokerage service in connection with gilt registration

34

In section 47 of the Finance Act 1942 (transfer and registration of Government stock), after subsection (1) there is inserted—

(1ZA) Regulations under subsection (1) of this section may make provision with respect to the purchase and sale of such stock and bonds by any person, or any description of person, through the Bank of England and, in relation to purchase or sale under the regulations, may— (a) make provision with respect to the commission and fees payable, and (b) make provision limiting the amount which any person, or any description of person, may purchase or sell on any day.

Section 207 of the Companies Act 1989: bearer securities

35

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Disclosure of information: minor amendments

36

General

Restriction on disclosure of information

37

Schedule 7 (which restricts the disclosure of information obtained for monetary policy or Bank of England levy purposes) shall have effect.

Offences in relation to supplying information to the Bank

38

(1) A person who fails without reasonable excuse to comply with any requirement imposed on him under section 17(1) or paragraph 9 of Schedule 2ZA shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(2) If after conviction of an offence under subsection (1) a person continues the failure for which he was convicted, he shall be guilty of a further offence under that subsection and liable on summary conviction to be punished accordingly.

(3) A person who in purported compliance with a requirement imposed on him under section 17(1) or paragraph 9 of Schedule 2ZA provides information which he knows to be false or misleading in a material particular, or recklessly provides information which is false or misleading in a material particular, shall be guilty of an offence and liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding 2 years, or to a fine, or to both, or

(b) on summary conviction, to imprisonment for a term not exceeding 3 months, or to a fine not exceeding the statutory maximum, or to both.

Offences by bodies corporate

39

(1) Where an offence under this Part committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and be liable to be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Orders

40

(1) Any power of the Treasury to make an order under this Act shall be exercisable by statutory instrument.

(2) An order under—section 1A(1),

section 17(4) or (5), or

paragraph 3(2) of Schedule 7,

shall not be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.

(3) A statutory instrument containing an order under—

section 23(2),

paragraph 1(5) of Schedule 4, or

paragraph 3(3) of Schedule 7,

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) A statutory instrument containing an order under section 33 shall be subject to annulment in pursuance of a resolution of the House of Commons.

(4A) Section 9N contains its own provisions about parliamentary procedure in relation to an order under section 9L.

(5) Section 19 contains its own provisions about parliamentary procedure in relation to an order under that section.

General interpretation

41

(1) In this Act—

“the Bank” means the Bank of England;

“the capital requirements regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council.

“central securities depository” has the meaning given by point (1) of Article 2(1) of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories;

(2) References in this Act to an EU regulation are to that regulation as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018.

Transitional provisions and savings

42

Schedule 8 (transitional provisions and savings) shall have effect.

Repeals

43

The enactments and instruments specified in Schedule 9 are hereby repealed or revoked to the extent specified in the final column of that Schedule.

Final provisions

Extent

44

(1) This Act extends to Northern Ireland.

(2) Section 33 extends to the Channel Islands and the Isle of Man.

(3) The extent of any amendment, repeal or revocation by this Act is the same as that of the enactment amended, repealed or revoked.

Commencement

45

This Act shall come into force on such day as the Treasury may by order appoint.

Short title

46

This Act may be cited as the Bank of England Act 1998.

SCHEDULE 1

Terms of office

1

(1) Appointment as Governor of the Bank shall be for a period of 8 years.

(2) Appointment as Deputy Governor of the Bank shall be for a period of 5 years.

(3) A person may not be appointed—

(a) as Governor, more than once, or

(b) as Deputy Governor, more than twice.

(4) A person appointed as Governor or Deputy Governor of the Bank shall work exclusively for the Bank; and for this purpose work in an office that an enactment requires to be held by the Governor or a Deputy Governor is to be taken to be work for the Bank.

2

(1) Appointment as non-executive director of the Bank shall be for a period of 4 years, or such shorter period as may be specified in the appointment.

(2) If it appears to Her Majesty that in the circumstances it is desirable to do so, Her Majesty may, before the end of the term for which a person is appointed as non-executive director, extend the person's term of office on one occasion for a specified period of not more than 6 months.

(3) If a person whose term of office is extended under sub-paragraph (2) is subsequently re-appointed as non-executive director—

(a) the length of the term of his or her re-appointment (or, if the person is re-appointed more than once, of the first re-appointment following the extension) is to be reduced by a period equal to the extension, but

(b) the term of that re-appointment may itself be extended under sub-paragraph (2).

3

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4

A person appointed as Governor, Deputy Governor or non-executive director of the Bank may resign his office by written notice to the Bank.

Qualification for appointment

5

(1) A person is disqualified for appointment as Governor, Deputy Governor or non-executive director of the Bank if he is a Minister of the Crown or a person serving in a government department in employment in respect of which remuneration is payable out of money provided by Parliament.

(2) An officer or employee of the Bank, other than a person holding office under section 9B(1)(e), is disqualified for appointment as non-executive director of the Bank.

6

(1) The fact that a person has held office as Governor of the Bank does not disqualify that person from appointment as Deputy Governor or non-executive director of the Bank.

(2) The fact that a person has held office as Deputy Governor or non-executive director of the Bank does not disqualify that person from re-appointment to that office or for appointment to the other office or as Governor of the Bank, but this is subject to paragraph 1(3)(b).

Removal from office

7

(1) A person appointed as Governor or Deputy Governor of the Bank shall vacate office if he becomes a person to whom paragraph 5(1) applies.

(2) A person appointed as non-executive director of the Bank shall vacate office if he becomes a person to whom paragraph 5(1) or (2) applies.

8

(1) The Bank may, with the consent of the Chancellor of the Exchequer, remove a person from office as Governor, Deputy Governor or non-executive director of the Bank if it is satisfied—

(a) that he has been absent from meetings of the court for more than 3 months without the consent of the court,

(b) that he has become bankrupt , that a debt relief order (under Part 7A of the Insolvency Act 1986) has been made in respect of him, that his estate has been sequestrated or that he has made an arrangement with or granted a trust deed for his creditors, or

(2) In relation to the Deputy Governor for prudential regulation, the reference in sub-paragraph (1)(c) to inability or unfitness to discharge functions as member of the court of directors is to be read as including a reference to inability or unfitness to discharge functions as chief executive for prudential regulation (see Schedule 6A) .

Powers

9

The court may act notwithstanding the existence of one or more vacancies among its members.

10

The court may appoint such sub-committees as it thinks fit.

11

(1) The court may delegate such duties and powers as it thinks fit to—

(a) a member of the court,

(b) any officer, employee or agent of the Bank,

(i) members of the court, or

(ii) one or more members of the court and one or more of the officers, employees and agents of the Bank.

(d) a committee consisting of officers, employees or agents of the Bank.

(2) The duties and powers that may be delegated under this paragraph do not include duties and powers that are by any enactment expressly imposed or conferred on the court of directors.

(a) include duties and powers conferred on the court of directors by section 9A (financial stability strategy), but

(b) except as mentioned in paragraph (a),

(3) The court of directors retains responsibility for a duty or power which it delegates under this paragraph.

Meetings

12

(1) The court shall meet at least 7 times in each calendar year.

(2) Either of the following may summon a meeting at any time on giving such notice as the circumstances appear to require—

(a) the Governor of the Bank (or in his absence a Deputy Governor), and

(b) the chair of the court.

Proceedings

13

(1) At a meeting of the court, the proceedings shall be regulated as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The Chancellor of the Exchequer may designate—

(a) a member of the court to chair its meetings (“the chair of the court”), and

(b) one or more members of the court as deputies to chair its meetings in the absence of the chair of the court.

(3A) But a member of the court who is the Governor or a Deputy Governor of the Bank may not be designated under paragraph (a) or (b) of sub-paragraph (3).

(4) If a member of the court has any direct or indirect interest in any dealing or business with the Bank—

(a) he shall disclose his interest to the court at the time of the dealing or business being negotiated or transacted, and

(b) he shall have no vote in relation to the dealing or business, unless the court has resolved that the interest does not give rise to a conflict of interest.

(5) A member of the court shall have no vote in relation to any question arising which touches or concerns him but shall withdraw and be absent during the debate of any matter in which he is concerned.

(6) Subject to sub-paragraphs (3) to (5), the court shall determine its own procedure (including quorum).

Remuneration

14

(A1) The remuneration of the Governor and Deputy Governors of the Bank is to be determined by a sub-committee of the court of directors consisting of 3 or more non-executive directors of the Bank.

(1) A person appointed as Governor or Deputy Governor of the Bank shall be entitled to be paid by the Bank such remuneration as that sub-committee may determine.

(2) The Bank may pay, or create and maintain a fund for the payment of, pensions or capital grants to members, or former members, of the court who have rendered exclusive services to the Bank.

15

A non-executive director of the Bank shall be entitled to be paid by the Bank such remuneration as the Bank may determine with the approval of the Chancellor of the Exchequer.

SCHEDULE 2

Eligible institutions

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability base

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Call notices

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of depositable amount

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Value bands and applicable ratios

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of call notice

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Benchmark rate of interest

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to obtain information

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Orders

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications for new entrants

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 3

Terms of office of appointed members

1

Appointment as a member of the Committee under section 13(2)(b) or (c) shall be for a period of 3 years, but this is subject to paragraph 2B.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

(1) A person appointed under section 13(2)(b) or (c) may resign his office by written notice to the Bank.

(2) Where the notice relates to a person appointed under section 13(2)(c), the Bank must give a copy of the notice to the Treasury.

4

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The terms and conditions on which a person holds office as a member of the Committee appointed under section 13(2)(c) are to be such as the court of directors of the Bank may determine.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualification for appointment

5

A person is disqualified for appointment under section 13(2)(b) or (c) if—

(a) he is a Minister of the Crown, or a person serving in a government department in employment in respect of which remuneration is payable out of money provided by Parliament, or

(b) he is a member of the court of directors of the Bank.

6

The fact that a person has held office under section 13(2)(b) or (c) does not disqualify him for further appointment to such office (subject to paragraph 2A).

Removal of appointed members

7

A person appointed under section 13(2)(b) or (c) shall vacate office if he becomes a person to whom paragraph 5(a) or (b) applies.

8

A person appointed under section 13(2)(b) shall vacate office if he ceases to carry out monetary policy analysis within the Bank ....

9

(1) The court of directors of the Bank may, with the consent of the Chancellor of the Exchequer, remove a member appointed under section 13(2)(b) or (c) if it is satisfied—

(a) that he has been absent from the 3 or more meetings of the Monetary Policy Committee without that Committee's consent,

(b) that he has become bankrupt , that a debt relief order (under Part 7A of the Insolvency Act 1986) has been made in respect of him, that his estate has been sequestrated or that he has made an arrangement with or granted a trust deed for his creditors, or

(1A) The court of directors may, with the consent of the Chancellor of the Exchequer, also remove a member appointed under section 13(2)(c) if it is satisfied that in all the circumstances his financial or other interests are such as substantially to affect the functions as member which it would be proper for him to discharge.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meetings

10

(1) The Committee shall meet at least 8 times in each calendar year .

(1A) The Committee shall meet at least once in any 10 week period.

(2) The Governor of the Bank (or in his absence the Deputy Governor of the Bank ... for monetary policy) may summon a meeting at any time on giving such notice as in his judgment the circumstances may require.

Proceedings

11

(1) At a meeting of the Committee, the proceedings shall be regulated as follows.

(2) The quorum shall be 6, of whom—

(a) one must be the Governor of the Bank or the Deputy Governor for monetary policy,

(b) unless both those mentioned in paragraph (a) are present, one must be either the Deputy Governor for financial stability or the Deputy Governor for markets and banking.

(3) The chair shall be taken by the Governor of the Bank or, if he is not present, the Deputy Governor of the Bank ... for monetary policy.

(4) Decisions shall be taken by a vote of all those members present at the meeting.

(5) In the event of a tie, the chairman shall have a second casting vote.

(6) Subject to sub-paragraphs (2) to (5) and paragraph 13B, the Committee shall determine its own procedure.

12

The Committee may, in relation to sub-paragraph (2), (3) or (4) of paragraph 11, determine circumstances in which a member who is not present at, but is in communication with, a meeting, is to be treated for the purposes of that sub-paragraph as present at it.

13

A representative of the Treasury may attend, and speak at, any meeting of the Committee.

Report to court of directors of the Bank

14

The Committee shall , at least 8 times in each calendar year, submit a report on its activities to the court of directors of the Bank.

Parliamentary disqualification

15

In Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices), there is inserted at the appropriate place— “ Member of the Monetary Policy Committee of the Bank of England appointed under section 13(2)(b) or (c) of the Bank of England Act 1998. ”;

SCHEDULE 4

Continuity of exercise of functions

1

(1) The transfer of functions by this Part shall not affect the validity of anything done (or having effect as if done) by or in relation to the Bank before the day on which this Act comes into force (“the transfer day”).

(2) Anything which, immediately before the transfer day, is in the process of being done by or in relation to the Bank may, if it relates to any of the transferred functions, be continued by or in relation to the Authority.

(3) Anything done (or having effect as if done) by, or in relation to, the Bank before the transfer day for the purpose of, or in connection with, any of the transferred functions, shall, so far as is required for continuing its effect on and after that day, have effect as if done by, or in relation to, the Authority.

(4) Any reference to the Bank in any document constituting or relating to anything to which the foregoing provisions of this paragraph apply shall, so far as is required for giving effect to those provisions, be construed as a reference to the Authority.

(5) The Treasury may, in relation to any of the transferred functions, by order exclude, modify or supplement any of the foregoing provisions of this paragraph or make such other transitional provisions as they think necessary or expedient.

Transfer of staff

2

The transfer of functions by this Part shall be regarded for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 1981 as the transfer of part of an undertaking, whether or not it would be so regarded apart from this provision.

Transfer of property, rights and liabilities

3

(1) The Bank shall make a scheme under this paragraph for the transfer to the Authority of such of the Bank’s property, rights and liabilities as appear to the Bank appropriate to be so transferred in consequence of the transfer of functions by this Part.

(2) A scheme under this paragraph made by the Bank shall not be capable of coming into force unless it is approved by the Treasury.

(3) The Bank may not submit a scheme under this paragraph to the Treasury for their approval without the consent of the Authority.

(4) Where a scheme under this paragraph is submitted to the Treasury for their approval, they may, before approving it, make such modifications to it as appear to them to be appropriate.

(5) Where this sub-paragraph applies, the Treasury may, after consultation with the Bank and the Authority, make a scheme under this paragraph for the transfer to the Authority of such of the Bank’s property, rights and liabilities as appear to them appropriate to be so transferred in consequence of the transfer of functions by this Part.

(6) Sub-paragraph (5) applies if—

(a) the Bank fails, before such time as may be notified to it by the Treasury as the latest time for submission of a scheme under this paragraph, to submit such a scheme to them for their approval, or

(b) the Treasury decide not to approve a scheme that has been submitted to them by the Bank (either with or without modifications).

(7) A scheme under this paragraph shall come into force on such day as the Treasury may by order appoint.

(8) When a scheme under this paragraph comes into force, the property, rights and liabilities of the Bank to which the scheme relates shall, by virtue of this paragraph and without further assurance, be transferred to and vested in the Authority in accordance with the provisions of the scheme.

(9) The Bank shall provide the Treasury with all such information and other assistance as they may reasonably require for the purposes of, or otherwise in connection with, the exercise of any power conferred on them by this paragraph.

4

(1) The property, rights and liabilities capable of being transferred in accordance with a scheme under paragraph 3 shall include property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the Bank.

(2) The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were—

(a) no such requirement to obtain any person’s consent or concurrence,

(b) no such liability in respect of a contravention of any other requirement, and

as there would be, in the case of any transaction apart from this Act, by reason of provisions having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the Bank is entitled or subject in relation to any property, right or liability.

5

(1) A scheme under paragraph 3 may also contain provision—

(a) for rights and liabilities to be transferred so as to be enforceable by or against both the Bank and the Authority,

(b) for the creation in favour of the Bank of an interest or right in or in relation to property transferred in accordance with the scheme,

(c) for giving effect to a transfer to the Authority in accordance with the scheme by the creation in favour of the Authority of an interest or right in or in relation to property retained by the Bank,

(d) for imposing on the Bank and the Authority obligations to enter into such written agreements with each other as may be specified in the scheme, and

(e) for imposing on either one of them obligations to execute such instruments in favour of the other as may be so specified.

(2) An obligation imposed by a provision included in a scheme by virtue of sub-paragraph (1)(d) or (e) shall be enforceable by civil proceedings by the Bank or the Authority for an injunction or for any other appropriate relief.

(3) A transaction of any description effected in pursuance of a provision included in a scheme by virtue of sub-paragraph (1)(d) or (e)—

(a) shall have effect subject to the provisions of any enactment which provides for transactions of that description to be registered in any statutory register, but

(b) subject to that, shall be binding on all other persons, notwithstanding that it would, apart from this provision, have required the consent or concurrence of any other person.

6

(1) A scheme under paragraph 3 may make such supplemental, consequential and transitional provision for the purposes of, or in connection with, any transfer of property, rights or liabilities for which the scheme provides or in connection with any other provisions contained in the scheme as the Bank may consider appropriate.

(2) In particular, such a scheme may provide—

(a) that for purposes connected with any transfer made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) the Authority is to be treated as the same person in law as the Bank,

(b) that, so far as may be necessary for the purposes of or in connection with any such transfer, agreements made, transactions effected and other things done by or in relation to the Bank are to be treated as made, effected or done by or in relation to the Authority,

(c) that, so far as may be necessary for the purposes of or in connection with any such transfer, references to the Bank in any agreement (whether or not in writing), deed, bond, instrument or other document are to have effect with such modifications as are specified in the scheme,

(d) that proceedings commenced by or against the Bank are to be continued by or against the Authority, and

(e) that the Bank and the Authority are to co-operate with each other for the purposes of and in connection with the scheme.

SCHEDULE 5

Part I — Banking supervision

Chapter I — Banking Act 1987

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

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4

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5

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6

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7

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8

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9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

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14

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15

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16

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17

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18

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19

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20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter II — Banking Coordination (Second Council Directive) Regulations 1992

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

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24

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25

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26

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27

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28

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29

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30

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31

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32

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33

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34

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35

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter III — Other Enactments

Consumer Credit Act 1974 (c. 39)

36

In the Consumer Credit Act 1974, in section 16(3)(f), for “Bank of England” there is substituted “ Financial Services Authority ”.

Insolvency Act 1986 (c. 45)

37

In the Insolvency Act 1986, in section 422(1), for “Bank of England” there is substituted “ Financial Services Authority ”.

Building Societies Act 1986 (c. 53)

38

(1) Section 101 of the Building Societies Act 1986 is amended as follows.

(2) In subsection (4), for “Bank”, in both places, there is substituted “ Authority ”.

(3) In subsection (6)—

(a) for the definition of “the Bank” there is substituted—

“the Authority” means the Financial Services Authority

, and

(b) in paragraph (c) of the definition of “financial institution”, for “Bank” there is substituted “ Authority ”.

Financial Services Act 1986 (c. 60)

39

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insolvency (Northern Ireland) Order 1989 S.I. 1989/2405 (N.I. 19)

40

In the Insolvency (Northern Ireland) Order 1989, in Article 366, for “Bank of England” there is substituted “ Financial Services Authority ”.

Courts and Legal Services Act 1990 (c. 41)

41

(1) The Courts and Legal Services Act 1990 is amended as follows.

(2) In sections 37(8)(a) and 48(4)(a), the words “by the Bank of England” are omitted.

(3) In section 52(6)—

(a) in paragraph (a), the words “by the Bank of England” are omitted, and

(b) for “with the Bank of England” there is substituted “ with the Financial Services Authority ”.

(4) In section 54(1), in the inserted subsection (2)(e)(i), the words “by the Bank of England,” are omitted.

Charities Act 1993 (c. 10)

42

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Building Societies Act 1997 (c. 32)

43

(1) Section 32 of the Building Societies Act 1997 is amended as follows.

(2) In subsection (1), for “Bank” there is substituted “ Authority ”.

(3) In subsection (3)(a), for “Governor of the Bank” there is substituted “ Chairman of the Authority ”.

(4) In subsection (7), for the definition of “the Bank” there is substituted—

“the Authority” means the Financial Services Authority.

Part II — Supervision under section 43 of the Financial Services Act 1986

Financial Services Act 1986 (c. 60)

44

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment Services Regulations 1995 (S.I. 1995/3275)

45

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Supervision under section 171 of the Companies Act 1989

Companies Act 1989 (c. 40)

46

The Companies Act 1989 is amended as follows.

47

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48

(1) Section 176 is amended as follows.

(2) In subsection (2)(b), for “Bank of England” there is substituted “ Financial Services Authority ”.

(3) For subsection (6) there is substituted—

(6) Before making regulations under this section relating to a description of charges defined by reference to their being granted in favour of a person included in the list maintained by the Financial Services Authority for the purposes of section 171, or in connection with exchange facilities or clearing services provided by a person included in that list, the Secretary of State and the Treasury shall consult the Authority and the Bank of England. (6A) Before making regulations under this section relating to a description of charges defined by reference to their being granted in favour of the Bank of England, or in connection with settlement arrangements provided by the Bank, the Secretary of State and the Treasury shall consult the Bank.

Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I. 10))

49

(1) The Companies (No. 2) (Northern Ireland) Order 1990 is amended as follows.

50

In article 93(3), for “and the Bank of England” there is substituted “ , the Bank of England and the Financial Services Authority ”.

51

(1) Article 98 is amended as follows.

(2) In paragraph (2)(b), for “Bank of England” there is substituted “ Financial Services Authority ”.

(3) For paragraph (6) there is substituted—

(6) Before making regulations under this Article relating to a description of charges defined by reference to their being granted in favour of a person included in the list maintained by the Financial Services Authority for the purposes of section 171 of the Companies Act 1989, or in connection with exchange facilities or clearing services provided by a person included in that list, the Department shall consult the Treasury, the Authority and the Bank of England. (6A) Before making regulations under this Article relating to a description of charges defined by reference to their being granted in favour of the Bank of England, or in connection with settlement arrangements provided by the Bank, the Department shall consult the Treasury and the Bank.

Part IV — General: disclosure of information

Chapter I — Banking Act 1987

52

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

53

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54

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55

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56

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57

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58

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59

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter II — Other Enactments

Consumer Credit Act 1974 (c. 39)

60

In section 174(3A) of the Consumer Credit Act 1974—

(a) for “Bank of England” there is substituted “ Financial Services Authority ”, and

(b) for “Bank” there is substituted “ Authority ”.

Insurance Companies Act 1982 (c. 50)

61

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies Act 1985 (c. 6)

62

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6))

63

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Building Societies Act 1986 (c. 53)

64

(1) The Building Societies Act 1986 is amended as follows.

(2) In section 53, in subsection (5)—

(a) for “Bank of England”, in the first place where it occurs, there is substituted “ Financial Services Authority ”,

(b) for paragraph (b) there is substituted—

(b) by the Authority of any of its functions under the Banking Act 1987 or as a supervisor of money market institutions;

, and

(3) In that section, after subsection (5) there is inserted—

(5A) Nothing in subsection (1) above prohibits the disclosure of information to the Bank of England where, in the opinion of the Commission, it is desirable or expedient that the information should be disclosed with a view to facilitating the discharge— (a) by the Commission of any of its functions under this Act; or (b) by the Bank of any of its functions; nor does subsection (1) above prohibit further disclosure of the information by the Bank of England with the consent of the Commission.

(4) In section 54(3A)—

(a) for “Bank of England”, in the first place where it occurs, there is substituted “ Financial Services Authority, other than in its capacity as a designated agency within the meaning of the Financial Services Act 1986, ”, and

(b) for “Bank of England”, in the second place where it occurs, there is substituted “ Financial Services Authority ”.

Financial Services Act 1986 (c. 60)

65

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies Act 1989 (c. 40)

66

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Courts and Legal Services Act 1990 (c. 41)

67

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Friendly Societies Act 1992 (c. 40)

68

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pension Schemes Act 1993 (c. 48)

69

(1) The Pension Schemes Act 1993 is amended as follows.

(2) In section 149(6)(e), for “Bank of England” there is substituted “ Financial Services Authority ”.

(3) In section 158A(1), in the Table, in the entry relating to the Bank of England, for the words in the second column there is substituted “Any of its functions”, and after that entry there is inserted—

The Financial Services Authority.	Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

70

(1) The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

(2) In section 145(6)(e), for “Bank of England” there is substituted “ Financial Services Authority ”.

(3) In section 154A(1), in the Table, in the entry relating to the Bank of England, for the words in the second column there is substituted “ Any of its functions ”, and after that entry there is inserted—

The Financial Services Authority.	Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989.

Pensions Act 1995 (c. 26)

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

72

In Article 105(1) of the Pensions (Northern Ireland) Order 1995, in the Table, in the entry relating to the Bank of England, for the words in the second column there is substituted “ Any of its functions ”, and after that entry there is inserted—

The Financial Services Authority.	Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989.

SCHEDULE 6

Powers

1

(1) Every application for authorisation under the Banking Act 1987 and every notice given to the Authority under section 75 of that Act (notice by overseas institution of establishment of representative office in the United Kingdom) shall be accompanied by such fee as the Authority may by regulations prescribe; and no such application or notice shall be regarded as duly made or given unless this sub-paragraph is complied with.

(2) Every authorised institution and every European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits or other repayable funds from the public shall pay such periodical fees to the Authority as it may by regulations prescribe.

(3) The powers conferred by this paragraph may be used to prescribe such fees as will enable the Authority—

(a) to meet the expenses which it incurs in carrying out the transferred functions or for any incidental purposes, and

(b) to repay the principal of, and pay any interest on, any money which it has borrowed and which has been used for the purpose of meeting expenses which it has incurred in relation to the transfer to it of the transferred functions.

(4) Regulations under this paragraph shall specify the time when the fees are to be paid and may—

(a) provide for the determination of the fees in accordance with a specified scale or other specified factors,

(b) provide for the return or abatement of any fees, and

(5) In this paragraph—

“authorised” has the same meaning as in the Banking Act 1987;

“European authorised institution” has the same meaning as in the Banking Coordination (Second Council Directive) Regulations 1992;

“institution” has the same meaning as in the Banking Act 1987.

Consultation

2

(1) Before making regulations under paragraph 1, the Authority shall—

(a) publish the proposed regulations in such manner as appears to it best calculated to bring the proposals to the attention of those likely to be affected by them, together with a statement that representations about the proposals can be made to the Authority within a specified time, and

(b) have regard to any representations duly made in accordance with the statement.

(2) Sub-paragraph (1) does not apply where the Authority considers that the delay involved in complying with it would be prejudicial to the interests of depositors.

Mode of exercise

3

Power to make regulations under paragraph 1 is exercisable by instrument in writing which shall state that it is made under that paragraph.

Publication

4

(1) Immediately after regulations under paragraph 1 are made they shall be printed and made available to the public with or without payment.

(2) A person shall not be liable to pay a fee under regulations under paragraph 1 if he shows that, at the time the fee became payable, the regulations had not been made available as required by this paragraph.

Proof of regulations

5

(1) The production of a printed copy of regulations purporting to be made by the Authority under paragraph 1 on which is endorsed a certificate signed by an officer of the Authority authorised by it for that purpose and stating—

(a) that the regulations were made by the Authority,

(b) that the copy is a true copy of the regulations, and

shall be prima facie evidence or, in Scotland, sufficient evidence of the facts stated in the certificate.

(2) Any certificate purporting to be signed as mentioned in sub-paragraph (1) shall be deemed to have been duly signed unless the contrary is shown.

(3) Any person wishing in any legal proceedings to cite regulations under paragraph 1 may require the Authority to cause a copy of them to be endorsed with such a certificate as is mentioned in this paragraph.

SCHEDULE 7

Restricted information

1

(1) Subject to sub-paragraph (2), information is restricted information for the purposes of this paragraph if—

(a) it is obtained by the Bank by virtue of the power conferred by section 17(1) or paragraph 9 of Schedule 2ZA (whether or not it was obtained pursuant to a notice under that provision), and

(b) it relates to the business or other affairs of any person.

(2) Information is not restricted information for the purposes of this paragraph if—

(a) it has been made available to the public from other sources, or

(b) it is in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it.

(3) Except as permitted by the following provisions of this Schedule, restricted information shall not be disclosed by—

(a) the Bank or any officer or employee of the Bank, or

(b) any person obtaining the information directly or indirectly from the Bank,

without the consent of the person from whom the Bank obtained the information and, if different, the person to whom the information relates.

(4) Any person who discloses information in contravention of this paragraph shall be guilty of an offence and liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding 2 years, or to a fine, or to both;

(b) on summary conviction, to imprisonment for a term not exceeding 3 months, or to a fine not exceeding the statutory maximum, or to both.

Disclosure for the purposes of the Bank’s functions

2

(1) Paragraph 1 does not preclude the disclosure of information in any case in which disclosure is for the purpose of enabling or assisting the Bank to discharge—

(a) its functions as a monetary authority,

(b) its functions as a supervisor of systems for the transfer of funds between credit institutions and their customers, ...

(d) its functions as the Prudential Regulation Authority.

(2) “Credit institution” means an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account.

Disclosure by the Bank to other authorities

3

(1) Paragraph 1 does not preclude the disclosure by the Bank of information to any authority specified in the first column of the following Table if the Bank considers that the disclosure would enable or assist that authority to discharge any of the functions specified in relation to it in the second column of that Table.

Authority	Functions
The Treasury.	Functions under the Financial Services and Markets Act 2000.
The Secretary of State.	Functions under the Financial Services and Markets Act 2000.
An inspector appointed under Part 14 of the Companies Act 1985 ....	Functions under that Part.
A person authorised to exercise powers under section 447 of the Companies Act 1985 ... or section 84 of the Companies Act 1989.	Functions under that section ....
A person appointed under—(a)section 167 of the Financial Services and Markets Act 2000,(b)subsection (3) or (5) of section 168 of that Act, or(c)section 284 of that Act,to conduct an investigation.	Functions in relation to that investigation.
The Financial Conduct Authority ....	Functions under the legislation relating to friendly societies, the Building Societies Act 1986, Part 7 of the Companies Act 1989 or the Financial Services and Markets Act 2000.
. . .	. . .
The Chancellor of the Exchequer (or any person to whom any functions of the Chancellor of the Exchequer under the Statistics of Trade Act 1947 are delegated)	Functions under the Statistics of Trade Act 1947.
The Pensions Regulator	Functions conferred by or by virtue of—the Pension Schemes Act 1993,the Pensions Act 1995,the Welfare Reform and Pensions Act 1999,the Pensions Act 2004, orany enactment in force in Northern Ireland corresponding to an enactment mentioned in paragraphs (a) to (d) above.
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013	Functions conferred by, or by virtue of, that Act, the Payment Card Interchange Fee Regulations 2015 and the Payment Services Regulations 2017.

(2) The Treasury may by order amend the Table in sub-paragraph (1) by—

(a) adding any public or other authority and specifying functions in relation to it,

(b) removing any authority for the time being specified in the Table, or

(3) The Treasury may by order restrict the circumstances in which, or impose conditions subject to which, disclosure is permitted in the case of any authority for the time being specified in the Table.

(4) Before making an order under this paragraph, the Treasury shall consult the Bank.

Onward disclosure

4

(1) Paragraph 1 does not preclude the disclosure by any authority specified in the first column of the Table in paragraph 3(1) of information obtained by it by virtue of that provision if it makes the disclosure—

(a) with the consent of the Bank, and

(b) for the purpose of enabling or assisting it to discharge any functions specified in relation to it in the second column of that Table.

(2) Before deciding whether to give its consent to disclosure under this paragraph, the Bank shall take account of such representations as the authority proposing to make the disclosure may make about the desirability of or necessity for the disclosure.

Other permitted disclosures

5

Paragraph 1 does not preclude the disclosure of information—

(a) with a view to the institution of, or otherwise for the purposes of, any proceedings in connection with a payment due under Schedule 2ZA (Bank of England levy), or

(b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, whether under this Act or otherwise, ...

SCHEDULE 8

Bank’s immunity from suit

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of information

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pre-commencement consultation

6

If, before the day on which this Act comes into force, anything is done which, had it been done after that day, would to any extent have satisfied—

(a) any requirement to consult before making an order under this Act, or

(b) any requirement of paragraph 2(1) of Schedule 6,

that requirement shall to that extent be taken to have been satisfied.

Membership of the Deposit Protection Board

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 9

Part I — Repeals

Part II

Power to alter membership of court of directors

Consequential amendments.

Oversight Committee

Pension Schemes (Northern Ireland) Act 1993 (c.49)

Editorial notes

[^c1119760]: Act's amending, repealing and revoking provisions are coextensive with the enactments they affect: see s. 44(3).

[^c1119762]: 1946 c. 27.

[^c1119763]: 1786 c. 31.

[^c1119764]: 1808 c. 142.

[^c1119765]: 1870 c. 71.

[^c1119766]: 1946 c. 27.

[^c1119780]: S. 17(3)-(3D) substituted (1.12.2001) for s. 17(3) by S.I. 2001/3649, arts. 1, 161(2)

[^c1119781]: Words in s. 17(5) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 161(3)

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