Legalize / United Kingdom / Public General Act

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

(2) The recommendations must be made or confirmed in writing.

Explanation

9S

(1) In connection with the exercise of any of the specified powers, the Financial Policy Committee must prepare an explanation of—

(a) the reasons for the Committee's decision to exercise the power, in the way in which it is being exercised, and

(b) the Committee's reasons for believing that the exercise of the power, in the way in which it is being exercised, is compatible with the duties of the Committee under the following provisions—

(i) section 9C(1) (as read with section 9C(4)), and

(ii) section 9F.

(2) The specified powers are—

(a) the power to give a direction under section 9H;

(b) the power to make recommendations under section 9O, so far as relating to the exercise of the Bank's functions in relation to payment systems, settlement systems , clearing houses and central securities depositories ;

(c) the power to make recommendations under section 9P, so far as relating to the exercise by the Treasury of their power to make orders under any of the provisions mentioned in subsection (2) of that section;

(d) the power to make recommendations under section 9Q.

(3) The explanation required by subsection (1) in relation to the duty in section 9F(3)(a) must include an estimate of the costs and an estimate of the benefits that would arise from compliance with the direction or recommendation in question, unless in the opinion of the Committee it is not reasonably practicable to include such an estimate.

Review

9T

(1) The Financial Policy Committee must—

(a) before the end of each review period, review each direction given by it under section 9H, other than a direction revoked before the end of the review period, and

(b) prepare a summary of its conclusions.

(2) A review period is—

(a) in relation to the first review, the period of 12 months beginning with the day on which the direction was given, and

(b) in relation to subsequent reviews, the period of 12 months beginning with the day on which the previous review was completed.

(3) The Financial Policy Committee must maintain arrangements for the review at regular intervals of any recommendations that it has made under any of sections 9O to 9R and are of continuing relevance.

(4) The purpose of a review is—

(a) in the case of a direction, to consider whether the direction ought to be revoked, and

(b) in the case of a recommendation, to consider whether the recommendation ought to be withdrawn.

Publication of record of meetings

9U

(1) The Bank must publish a record of each meeting of the Financial Policy Committee before the end of the period of 6 weeks beginning with the day of the meeting.

(2) The record must specify any decisions taken at the meeting (including decisions to take no action) and must set out, in relation to each decision, a summary of the Committee's deliberations.

(3) The decisions referred to in subsection (2) include in particular a decision—

(a) to give or revoke a direction under section 9H;

(b) to make recommendations under any of sections 9O to 9R.

(d) made under the Capital Buffers and Macro-prudential Measures Regulations 2025 (S.I. 2025/653).

(4) Where a decision has been made to give or revoke a direction under section 9H, the record must include the text of the direction or of the notice of revocation.

(5) Where a decision has been made to make recommendations under any of sections 9O to 9R, the record must include the recommendations.

(6) Where since the previous meeting the Committee has received a notification under section 9Q(3)(b), the record must include the notification.

(7) The information required by subsections (1) and (2) does not include information identifying particular members of the Committee.

(8) Subsections (1) to (6) do not require the publication of—

(a) information about any recommendations made under 9O(2)(a);

(b) information whose publication within the time required by subsection (1) would in the opinion of the Committee be against the public interest;

(d) information about a decision to give a direction under section 9H which has been revoked before the record of the meeting at which it was given is published;

(e) information about the decision to revoke a direction where information about the direction is withheld under paragraph (d).

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Publication under this section or section 9V is to be in such manner as the Bank thinks fit.

9V

(1) Where the Financial Policy Committee decides under subsection (8)(b) of section 9U that publication of information within the time required by subsection (1) of that section would be against the public interest—

(a) it must consider whether to fix a date as the earliest date on which the information may be published, and

(b) if it does not fix a date, it must keep under consideration the question whether publication of the information would still be against the public interest.

(2) The Committee must from time to time determine the procedures that it will follow in complying with the duty in subsection (1)(b).

(3) Where the Committee—

(a) fixes a date under subsection (1)(a) as the earliest date on which any information may be published, or

(b) decides under subsection (1)(b) that publication of any information is no longer against the public interest,

the Bank must publish the information at the time when it next publishes under section 9U(1) the record of a meeting of the Committee.

Financial stability reports by Financial Policy Committee

9W

(1) The Financial Policy Committee must prepare and publish reports relating to financial stability (“financial stability reports”).

(2) Two financial stability reports must be published in each calendar year.

(3) A financial stability report must include—

(a) the Committee's view of the stability of the UK financial system at the time when the report is prepared,

(b) an assessment of the developments that have influenced the current position,

(d) an assessment of risks to the stability of the UK financial system, and

(e) the Committee's view of the outlook for the stability of the UK financial system.

(4) A financial stability report must also include—

(a) a summary of the activities of the Committee in the reporting period, and

(b) an assessment of the extent to which the exercise by the Committee of its functions (both during the reporting period and previously) has succeeded during the reporting period in achieving the objectives set out in section 9C(1)(a) and (b).

(5) If during the reporting period the Committee has made any decision in relation to which section 9S requires the preparation of an explanation, the financial stability report must include the required explanation.

(6) If during the reporting period the Committee has completed the review of a direction or recommendation, the financial stability report must include a summary of the review.

(7) The reporting period is the period since the date of the previous financial stability report, except that in the case of the first financial stability report it is the period since the time when this section came fully into force.

(8) Nothing in subsections (3) to (6) is to be regarded as requiring the Committee to include in a financial stability report any information whose publication would in the Committee's opinion be against the public interest.

(9) The Committee must give a copy of each financial stability report to the Treasury.

(10) The Treasury must lay before Parliament a copy of each financial stability report.

(11) Publication of a financial stability report is to be in such manner as the Bank thinks fit.

Meetings between Governor and Chancellor of the Exchequer

9X

(1) As soon as reasonably practicable after the publication by the Financial Policy Committee of a financial stability report, the Governor of the Bank and the Chancellor of the Exchequer must meet to discuss the report and any other matters relating to the stability of the UK financial system that they consider it appropriate to discuss.

(2) The Treasury must publish a record of each meeting required by subsection (1) before the end of the period of 6 weeks beginning with the day of the meeting.

(3) Publication under subsection (2) is to be in such manner as the Treasury think fit.

(4) Subsection (2) does not require the publication of information whose publication within the time required by that subsection would in the opinion of the Treasury be against the public interest.

(5) Before publishing the record of a meeting required by subsection (1), or deciding under subsection (4) not to publish such a record, the Treasury must consult the Bank about the record and its publication.

Power of Bank to require FCA ... to provide information

Directions requiring information or documents

9Y

(1) The Bank may exercise the powers conferred by this section where it considers that information or documents are reasonably required in connection with the exercise by the Bank of its functions in pursuance of the Financial Stability Objective.

(2) The Bank may give a direction to the FCA requiring it —

(a) to provide the Bank with specified information or information of a specified description, or

(b) to produce to the Bank specified documents or documents of a specified description.

(3) The direction may relate to information or documents which are held by persons other than the FCA and which the FCA has power to obtain or whose production the FCA has power to require.

(4) Any information or documents to which the direction relates are—

(a) where the information or documents are held by a person in relation to whom the powers conferred by subsections (1) and (3) of section 165 of FSMA 2000 are exercisable, to be taken to be information or documents to which that section applies by virtue of subsection (4) of that section, ...

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

(5) The information or documents must be provided or produced before the end of such period as may be specified.

(6) The Bank may require any information provided under this section to be provided in such form as it may require.

(7) The Bank may require—

(a) any information provided, whether in a document or otherwise, to be verified in such manner as it may require;

(b) any document produced to be authenticated in such manner as it may require.

9Z

(1) In the exercise of its functions under section 9Y, the Bank must have regard to the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction.

(2) Before giving a direction under section 9Y to the FCA ..., the Bank must consult the FCA .

(3) A direction under section 9Y must be in writing, and may be revoked by a notice in writing.

(4) As soon as practicable after giving a direction under section 9Y, the Bank must publish the direction in such manner as it thinks appropriate for bringing the direction to the attention of persons (other than the FCA ) who may be affected by it.

(5) Subsection (4) does not require the publication of information whose publication at the time required by that subsection would in the opinion of the Bank be against the public interest.

(6) Where the Bank decides under subsection (5) that publication of any information would be against the public interest, it must from time to time review that decision and if it subsequently decides that publication is no longer against the public interest it must comply with subsection (4).

Supplementary

9ZA

In this Part—

“ the FCA ” means the Financial Conduct Authority;

“ financial assistance ” has the meaning given by section 257(1) of the Banking Act 2009;

“ the Financial Policy Committee ” means the Financial Policy Committee of the Bank of England;

“ the financial sector ” means financial institutions generally;

“ FSMA 2000 ” means the Financial Services and Markets Act 2000;

“ the PRA ” means the Prudential Regulation Authority;

“ systemic risk ” has the meaning given by section 9C(5);

“ the UK economy ” means the economy of the United Kingdom;

“the UK financial system” means the financial system of the United Kingdom.

Operational responsibility.

Objectives.

Reports.

Publication of record of meetings

12A

(1) The Bank must publish a record of each meeting of the court—

(a) before the end of the period of 6 weeks beginning with the day of the meeting, or

(b) if no meeting of the court is subsequently held during that period, before the end of the period of 2 weeks beginning with the day of the next meeting.

(2) The record must specify any decisions taken at the meeting (including decisions to take no action) and must set out, in relation to each decision, a summary of the court's deliberations.

(3) Sub-paragraphs (1) and (2) do not require the publication of information whose publication within the time required by sub-paragraph (1) would in the opinion of the court be against the public interest.

(4) Publication under this section is to be in such manner as the Bank thinks fit.

SCHEDULE 2A

Terms of office of appointed members

1

(1) Appointment under section 9B(1)(d) or (e) as a member of the Financial Policy Committee is to be for a period of 3 years, but this is subject to sub-paragraph (2) and to paragraph 3.

(2) Initially some appointments may be for shorter and different periods so as to secure that appointments expire at different times.

2

(1) A person may not be appointed as a member of the Committee under section 9B(1)(e) more than twice.

(2) For this purpose an appointment which by virtue of paragraph 1(2) is for a period of less than 3 years is to be disregarded.

3

(1) If it appears to the Chancellor of the Exchequer that in the circumstances it is desirable to do so, the Chancellor may, before the end of the term for which a person is appointed as a member of the Committee under section 9B(1)(e), extend the persons's term of office on one occasion for a specified period of not more than 6 months.

(2) The term being extended may be the person's first or second term or, in a case where paragraph 2(2) allows a third term, the person's third term.

(3) If a person whose first term of office is extended is subsequently re-appointed under section 9B(1)(e)—

(a) the length of the second term is to be reduced by a period equal to the extension of the first term, but

(b) the second term may itself subsequently be extended under sub-paragraph (1).

(4) In a case where a person's second term of office is extended and paragraph 2(2) allows a third term, sub-paragraph (3) is to be read as if the references to first and second terms were references to second and third terms respectively.

4

(1) A person appointed under section 9B(1)(d) or (e) may resign the office by written notice to the Bank.

(2) Where the notice relates to a person appointed under section 9B(1)(e), the Bank must give a copy of the notice to the Treasury.

5

The terms and conditions on which a person holds office as a member of the Committee appointed under section 9B(1)(e) are to be such as the court of directors of the Bank may determine.

Qualification for appointment

6

(1) The following persons are disqualified for appointment under section 9B(1)(d) or (e)—

(a) a Minister of the Crown;

(b) a person serving in a government department in employment in respect of which remuneration is paid out of money provided by Parliament.

(2) The following persons are disqualified for appointment under section 9B(1)(e)—

(a) a member of the Monetary Policy Committee of the Bank appointed under section 13(2)(c);

(b) a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

Removal of appointed members

7

A person appointed under section 9B(1)(d) or (e) vacates office on becoming a person to whom paragraph 6(1)(a) or (b) applies.

8

A person appointed under section 9B(1)(d) vacates office on ceasing to have executive responsibility within the Bank for the analysis of threats to financial stability.

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 9B(1)(d) or (e) (“M”) if it is satisfied—

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

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

(2) The court of directors may, with the consent of the Chancellor of the Exchequer, also remove a member appointed under section 9B(1)(e) (“M”) if it is satisfied that in all the circumstances M's financial or other interests are such as substantially to affect the functions as member which it would be proper for M to discharge.

Meetings

10

(1) The Committee shall meet at least 4 times in each calendar year.

(2) The Governor of the Bank (or in the Governor's absence the Bank's Deputy Governor for financial stability) may summon a meeting at any time on giving such notice as the person giving the notice thinks the circumstances require.

Proceedings

11

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

(2) The quorum is to be 6 (excluding the Treasury's representative) and of the 6—

(a) one must be the Governor of the Bank or the Bank's Deputy Governor for financial stability,

(b) unless both those mentioned in paragraph (a) are present, one must be one of the other Deputy Governors of the Bank, and

(3) The chair is to be taken by the Governor of the Bank or, if the Governor is not present, by the Bank's Deputy Governor for financial stability.

(4) The person chairing the meeting must seek to secure that decisions of the Committee are reached by consensus wherever possible.

(5) Where that person forms the opinion that consensus cannot be reached, a decision is to be taken by a vote of all those members present at the meeting.

(6) In the event of a tie, the person chairing the meeting is to have a second casting vote.

(7) At a meeting of the Committee—

(a) the Treasury's representative may not vote, and

(b) any view expressed by the Treasury's representative is to be disregarded in determining under sub-paragraph (4) or (5) whether there is a consensus.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

The Committee may, in relation to sub-paragraph (2), (3), (4) or (5) 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

The Committee may invite other persons to attend, or to attend and speak at, any meeting of the Committee.

14

(1) If a member of the Committee (“M”) has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Committee—

(a) M must disclose that interest to the Committee when it considers the dealing or business, and

(b) the Committee must decide whether M is to be permitted to participate in any proceedings of the Committee relating to any question arising from its consideration of the dealing or business, and if so to what extent and subject to what conditions (if any).

(2) The Bank must issue and maintain a code of practice describing how members of the Committee and the Committee are to comply with sub-paragraph (1).

(3) The Bank may at any time revise or replace the code.

(4) Before issuing, revising or replacing the code, the Bank must consult the Treasury.

(5) The Bank must publish the current version of the code in whatever manner it sees fit.

(6) The Committee must comply with the code when taking decisions under sub-paragraph (1)(b).

2B

(1) If it appears to the Chancellor of the Exchequer that in the circumstances it is desirable to do so, the Chancellor may, before the end of the 3 years for which a person is appointed as a member of the Committee under section 13(2)(c), extend the persons's term of office on one occasion for a specified period of not more than 6 months.

(2) The term being extended may be the person's first or second term.

(3) If a person whose first term of office is extended is subsequently re-appointed under section 13(2)(c)—

(a) the length of the second term is to be reduced by a period equal to the extension of the first term, but

(b) the second term may itself subsequently be extended under sub-paragraph (1).

5A

The following persons are disqualified for appointment under section 13(2)(c)—

(a) a member of the Financial Policy Committee of the Bank appointed under section 9B(1)(e);

(b) a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

13A

The Committee may invite other persons to attend, or to attend and speak at, any meeting of the Committee.

3A.

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

(2) The oversight functions of the court of directors are—

(a) keeping under review the Bank's performance in relation to—

(i) the Bank's objectives (that is, the objectives specified in relation to it in this Act , the objectives specified in relation to the Prudential Regulation Authority in Part 1A of the Financial Services and Markets Act 2000 and the other objectives for the time being determined by the court of directors of the Bank),

(ii) the duty of the Financial Policy Committee under section 9C, ...

(iii) the Bank's strategy determined under section 2,

(iv) the Bank's financial stability strategy determined under section 9A, and

(v) the strategy of the Prudential Regulation Authority determined under section 2E of the Financial Services and Markets Act 2000;

(b) monitoring the extent to which the objectives set by the court of directors of the Bank in relation to the Bank's financial management have been met;

(c) keeping under review the internal financial controls of the Bank with a view to securing the proper conduct of its financial affairs;

(d) the functions conferred on the court of directors by the provisions listed in subsection (4).

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

(4) The provisions referred to in subsection (2)(d) are—

(a) section 9B (review of procedures followed by Financial Policy Committee);

(b) section 16 (review of procedures followed by Monetary Policy Committee);

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3B

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

3C

(1) In the discharge of any of itsoversight functions, the court of directors may arrange—

(a) for a review to be conducted under this section in relation to any matter by a person appointed by the court of directors, and

(b) for the person conducting the review to make one or more reports to the court of directors .

(1A) Where they consider that to do so would contribute to the discharge by the court of directors of any of its oversight functions, the non-executive directors of the Bank (or a majority of them) may arrange—

(a) for a review to be conducted under this section in relation to any matter by a person appointed by those directors, and

(b) for the person conducting the review to make one or more reports to the court of directors.

(2) The persons who may be appointed to conduct a review include an officer or employee of the Bank.

(3) A review under this section is a “performance review” if it—

(a) is arranged in relation to the discharge of any of the court's functions under section 3A(2)(a) and (b), and

(b) relates to past events.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In the case of a performance review, regard must be had to the desirability of ensuring that sufficient time has elapsed—

(a) for the review to be effective, and

(b) to avoid the review having a material adverse effect on the exercise by the Bank of its functions.

3D

(1) The Bank must give the Treasury a copy of any report made to the court of directors by a person appointed under section 3C to conduct a performance review (as defined by subsection (3) of that section).

(2) Subject to subsection (3), the Bank must also publish the report.

(3) Subsection (2) does not require the publication of information whose publication at the time when the report is made would in the opinion of the court of directors of the Bank be against the public interest.

(4) Where the court of directors decides under subsection (3) that publication of information at the time when the report is made would be against the public interest, it must keep under consideration the question of whether publication of the information would still be against the public interest.

(5) Where the court of directors decides that publication of any information is no longer against the public interest, the Bank must publish the information.

(6) The Treasury must lay before Parliament a copy of any report or other information published by the Bank under this section.

3E

(1) This section applies where a report made by a person appointed under section 3C to conduct a review makes recommendations to the Bank as to steps to be taken by it.

(2) The court of directors must—

(a) monitor the Bank's response to the report, and

(b) if or to the extent that the Bank accepts the recommendations, monitor the implementation of the recommendations.

3F

(1) The documents to which the court of directors is to have access in the discharge of its oversight functions include documents considered, or to be considered, by the Financial Policy Committee , the Monetary Policy Committee or the Prudential Regulation Committee .

(2) One or two members of the court of directors may attend any meeting of the Financial Policy Committee , the Monetary Policy Committee or the Prudential Regulation Committee for the purposes of exercising its oversight functions , but a person attending by virtue of this subsection may not speak unless invited to do so by the person chairing the meeting.

(2A) But a member of the court of directors who has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Prudential Regulation Committee may not, under the powers conferred by this section—

(a) obtain access to any documents relating to the dealing or business, or

(b) attend any proceedings of the Prudential Regulation Committee relating to any question arising from its consideration of the dealing or business.

(3) Subsection (2) does not affect—

(a) anything done in relation to the Financial Policy Committee , the Monetary Policy Committee or the Prudential Regulation Committee by a member of that Committee who is also a member of the court of directors,

(b) the powers of the Financial Policy Committee under paragraph 13 of Schedule 2A, ...

(d) the powers of the Prudential Regulation Committee under paragraph 15(2) of Schedule 6A.

Financial Policy Committee

Oversight functions: further provisions

Recommendations by Treasury

Directions to FCA or PRA requiring macro-prudential measures

Compliance with directions under section 9H

Revocation of directions under section 9H

Macro-prudential measures

Parliamentary control of orders under section 9L

Duty to prepare explanation

Meetings between Governor and Chancellor of the Exchequer

Further provisions about directions under section 9Y

Operational responsibility.

Specification of matters relevant to objectives.

Objectives.

2AA

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

Financial Stability Committee

Financial Stability Committee: supplemental

Financial Stability Committee

Financial Stability Committee: supplemental

Consequential amendments.

Financial stability strategy

Objectives of the Financial Policy Committee

Specification of matters relevant to economic policy

Directions to FCA or PRA requiring macro-prudential measures

Statements of policy by Financial Policy Committee

Revocation of directions under section 9H

Further provisions about directions under section 9H

Statements of policy by Financial Policy Committee

Recommendations to other persons

Meetings between Governor and Chancellor of the Exchequer

Directions requiring information or documents

Operational responsibility.

Objectives.

Reports.

Functions to be carried out by non-executive members.

Oversight Committee: procedure

7A

(1) If the Bank considers it necessary to do so having regard to the Financial Stability Objective, the Bank may by direction to a qualifying company exclude the application to the qualifying company of any of the relevant Companies Act requirements.

(2) The relevant Companies Act requirements are the requirements to which the directors of the qualifying company would otherwise be subject under the Companies Act 2006 (except sections 412 and 413 (directors' benefits)) in relation to the preparation of accounts under section 394 of that Act.

(3) A direction under subsection (1) may relate to one or more specified accounting periods of the qualifying company, or to a specified accounting period and all subsequent accounting periods of the qualifying company.

(4) The Bank must consult the Treasury before giving a direction under subsection (1).

(5) The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such information relating to the accounts of a qualifying company as the Treasury may specify in the notice.

(6) The information specified in a notice under subsection (5) may include information which as a result of a direction under subsection (1) was excluded from accounts prepared in accordance with the Companies Act 2006.

(7) The Treasury must consult the Bank before giving a notice under subsection (5).

(8) A direction under subsection (1) or a notice under subsection (5) may be revoked by a subsequent direction or notice (as the case may be).

(9) “ Qualifying company ” means any company which is wholly owned by the Bank other than—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) a company which is a bridge bank for the purposes of section 12(3) of the Banking Act 2009 , or

(c) a company which is a bridge central counterparty for the purpose of paragraph 29 of Schedule 11 to the Financial Services and Markets Act 2023.

(10) For the purposes of subsection (9), a company is wholly owned by the Bank if—

(a) it is a company of which no person other than the Bank or a nominee of the Bank is a member, or

(b) it is a wholly-owned subsidiary of a company within paragraph (a).

Financial stability strategy

Objectives of the Financial Policy Committee

Specification of matters relevant to economic policy

Directions to FCA or PRA requiring macro-prudential measures

Compliance with directions under section 9H

Further provisions about directions under section 9H

Recommendations to other persons

Meetings between Governor and Chancellor of the Exchequer

Directions requiring information or documents

Operational responsibility.

Objectives.

Reports.

1A

(1) The Treasury, after consulting the Governor of the Bank, may by order amend the list in section 1(2) so as to—

(a) alter the title of a Deputy Governor;

(b) add a Deputy Governor to the list;

(2) An order under subsection (1)(a) or (c) must (by making saving provision or otherwise) secure that the alteration in the title of a Deputy Governor or the removal of a Deputy Governor from the list in section 1(2) does not have effect in relation to the individual (if any) who holds that office at the time the order is made.

(3) An order under subsection (1)(b) may also add the Deputy Governor to which the order relates to the list in—

(a) section 9B(1) (membership of Financial Policy Committee);

(b) section 13(2) (membership of Monetary Policy Committee);

(4) An order under subsection (1)(c) may also remove from any of those lists the Deputy Governor to which the order relates.

(5) Where an order under subsection (1) makes an amendment mentioned in column 1 of the following table, it may also make the amendment mentioned in the corresponding entry in column 2 of the table.

Addition or removal of Deputy Governors	Corresponding change in membership of Committee
Addition of one or more Deputy Governors to the list in section 9B(1)	Equal increase in the number of members appointed by the Chancellor of the Exchequer under section 9B(1)(e)
Removal of one or more Deputy Governors from the list in section 9B(1)	Equal reduction in the number of members appointed by the Chancellor of the Exchequer under section 9B(1)(e)
Addition of one or more Deputy Governors to the list in section 13(2)	Equal reduction in the number of members appointed by the Governor of the Bank under section 13(2)(b)
Removal of one or more Deputy Governors from the list in section 13(2)	Equal increase in the number of members appointed by the Governor of the Bank under section 13(2)(b)
Addition of one or more Deputy Governors to the list in section 30A(2)	Equal increase in the minimum number of members appointed by the Chancellor of the Exchequer under section 30A(2)(g)
Removal of one or more Deputy Governors from the list in section 30A(2)	Equal reduction in the minimum number of members appointed by the Chancellor of the Exchequer under section 30A(2)(g)

(6) The power in subsection (5)—

(a) to make an equal reduction in the number of members appointed under section 9B(1)(e), 13(2)(b) or 30A(2)(g), includes power to remove the power to make those appointments where an equal reduction would reduce the number of members so appointed to zero,

(b) to make an equal increase in the number of members appointed under section 9B(1)(e), 13(2)(b) or 30A(2)(g), includes power to reinstate the power to make those appointments where it has previously been removed under paragraph (a).

(7) An order under subsection (1) may amend, repeal or revoke any provision made by or under any Act, including this Act, so as to make consequential provision.

Macro-prudential measures: Article 458 of the capital requirements regulation

Financial Stability Committee

Financial Stability Committee: supplemental

Cash ratio deposits.

Oversight Committee: procedure

Reviews

Publication of reports of performance reviews

Recommendations resulting from review

Oversight functions: further provisions

Annual report by the Bank.

Examination by Comptroller and Auditor General

7ZA

(1) Before appointing an auditor or auditors under section 7(5), the Bank must consult the Comptroller and Auditor General (“the Comptroller”).

(2) The auditor or auditors appointed by the Bank must consult the Comptroller on the scope, timing and direction of the audit and on any audit plan (or any material revisions to an audit plan).

(3) The Comptroller—

(a) has a right of access at any reasonable time to any document relating to the audit of the Bank's accounts which the Comptroller may reasonably require, and

(b) may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary.

(4) Subsection (3) applies only to documents in the custody or under the control of the Bank.

(5) An obligation imposed on a person as a result of the exercise of the powers conferred by subsection (3) is enforceable by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

(6) The Comptroller (or a person nominated by the Comptroller) may attend any proceedings of the Bank's audit committee which are concerned with the audit of the Bank's accounts.

(7) The “ Bank's audit committee ” means the committee or sub-committee within the Bank for the time being having responsibilities relating to the audit of the Bank's accounts.

Accounts of companies wholly owned by the Bank

Reports on Bank activities indemnified by Treasury

7B

(1) This section applies where the Treasury give an indemnity or guarantee to the Bank in respect of an activity or series of activities undertaken by the Bank.

(2) The Treasury may direct the Bank to prepare a financial report in relation to the activity or series of activities to which the indemnity or guarantee relates.

(3) A direction under subsection (2) may include directions as to—

(a) the financial years for which a report is to be prepared,

(b) the information to be contained in the report and the manner in which it is to be presented, and

(c) the methods and principles according to which any statement of financial information to be contained in the report is to be prepared.

(4) A direction under subsection (2) may be revoked by a further direction.

(5) The Bank must send any report that it prepares under subsection (2) to the Treasury.

(6) The Treasury may send the report to the Comptroller and Auditor General (“the Comptroller”) for review.

(7) The review is to consider such matters as may be agreed between the Comptroller and the Treasury.

(8) The Comptroller—

(a) has a right of access at any reasonable time to any document the Comptroller may reasonably require for the purposes of the review, and

(b) may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary.

(9) Subsection (8) applies only to documents in the custody or under the control of—

(a) the Bank;

(b) the auditor or auditors appointed by the Bank under section 7(5).

(10) An obligation imposed on a person as a result of the exercise of the powers conferred by subsection (8) is enforceable by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

7C

(1) This section applies where the Treasury give an indemnity or guarantee to a company (“ the company ”) in which the Bank has an interest, in respect of an activity or series of activities undertaken by the company.

(2) The Treasury may direct the company to send to the Comptroller and Auditor General (“the Comptroller”) accounts prepared by it in accordance with the Companies Act 2006 and any direction given by the Bank under section 7A(1).

(3) A direction given under subsection (2)—

(a) may relate to all financial years, or to financial years specified in the direction;

(b) may be revoked by a further direction.

(4) Where a direction given under subsection (2) has effect in relation to a financial year, the company is exempt from the requirements of Part 16 of the Companies Act 2006 (audit) for that financial year, and its balance sheet must include a statement to that effect.

(5) The Comptroller must examine any accounts sent to the Comptroller under this section with a view to satisfying himself or herself that the accounts have been properly prepared in all material respects in accordance with the bases of preparation identified in the accounts.

(6) After completing the examination the Comptroller must—

(a) certify the accounts and issue a report,

(b) send the certified accounts and the report to the Treasury, and

(c) if not satisfied that the accounts have been properly prepared in all material respects in accordance with the bases of preparation identified in the accounts, report to the House of Commons.

(7) The Treasury must lay the copy of the certified accounts and the report before Parliament.

(8) For the purposes of this section, the Bank has an interest in a company if—

(a) the Bank, or a nominee of the Bank, is a member of the company, or

(b) the company is a subsidiary undertaking of the Bank, within the meaning of section 1162 of the Companies Act 2006.

Examination by Comptroller and Auditor General

7D

(1) The Comptroller and Auditor General (“the Comptroller”) may carry out examinations into—

(a) the economy, efficiency and effectiveness with which the Bank has used its resources in discharging its functions;

(b) the economy, efficiency and effectiveness with which a Bank company has used its resources in discharging its functions.

(2) An examination under this section may be limited to such functions (however described) of the Bank or the Bank company as the Comptroller considers appropriate.

(3) An examination under this section is not to be concerned with the merits of the Bank's policy objectives.

(4) An examination under this section is not to be concerned with the merits of—

(a) policy decisions taken by the Financial Policy Committee, the Monetary Policy Committee or the Prudential Regulation Committee;

(b) policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the supervision of payment systems, settlement systems , central securities depositories or clearing houses, so far as the decisions relate to that supervision.

(5) Subject to subsection (6), an examination under this section is not to be concerned with the merits of policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the exercise of any of the Bank's resolution functions, so far as the decisions relate to those functions.

(6) Where the Bank has exercised relevant resolution functions in relation to a financial institution, subsection (5) does not prevent an examination under this section being concerned with the merits of policy decisions within that subsection which are relevant to the Bank's exercise of its resolution functions in relation to that institution (whether or not those policy decisions are also relevant to other financial institutions).

(7) “Relevant resolution functions” are—

(a) any of the stabilisation powers;

(b) any of the Bank's functions (other than its functions as the Prudential Regulation Authority) under or by virtue of—

(i) Part 2 or 3, or section 233, of the Banking Act 2009,

(ii) Part 6 of the Financial Services (Banking Reform) Act 2013.

(8) Before carrying out an examination under this section, the Comptroller must consult the court of directors of the Bank.

(9) The Comptroller may report to the House of Commons the results of any examination carried out by the Comptroller under this section.

(10) For the purposes of this section—

“ Bank company ” means— a company which is a subsidiary undertaking of the Bank, within the meaning of section 1162 of the Companies Act 2006;a company not within paragraph (a) in respect of which a direction under section 7C(2) has effect;

“ resolution functions ” means the Bank's functions (other than its functions as the Prudential Regulation Authority) under or by virtue of— Parts 1 to 3, and section 233, of the Banking Act 2009,Part 6 of the Financial Services (Banking Reform) Act 2013, Schedule 11 to the Financial Services and Markets Act 2023, the Bank Recovery and Resolution ( No. 2) Order 2014 ( S.I. 2014/3348);

“stabilisation powers” means a stabilisation power within the meaning given by section 1(4) of the Banking Act 2009 or paragraph 1(4) of Schedule 11 to the Financial Services and Markets Act 2023.

(11) Section 6 of the National Audit Act 1983 (Comptroller may carry out economy, efficiency and effectiveness examinations) does not apply to the Bank or a Bank company.

Memorandum of understanding

7E

(1) The Bank and the Comptroller must prepare and maintain a memorandum of understanding about examinations under section 7D.

(2) The memorandum must in particular include provision—

(a) as to functions of the Bank in respect of which the Comptroller will not usually consider it appropriate to carry out an examination;

(b) identifying the committees or other bodies referred to in section 7D(4)(b) and (5);

(c) establishing a procedure for resolving in a timely fashion any dispute between the Bank and the Comptroller as to whether a matter is (under section 7D(3) to (6)) a matter with which an examination under section 7D is not to be concerned;

(d) for the publication of the views of the Bank and the Comptroller as to whether a matter is such a matter, in cases where a dispute between them cannot be resolved.

7F

(1) The Treasury may appoint an independent person to conduct a review of the economy, efficiency and effectiveness with which the Bank has used its resources in discharging its functions as the Prudential Regulation Authority.

(2) “ Independent ” means appearing to the Treasury to be independent of the Bank.

(3) A review under this section may be limited to such of the Bank's functions as the Prudential Regulation Authority (however described) as the Treasury may specify in appointing the person to conduct it.

(4) A review under this section is not to be concerned with the merits of the Bank's general policy or principles in pursuing the Bank's objectives (including its objectives as the Prudential Regulation Authority).

(5) On completion of the review, the person conducting it must make a written report to the Treasury—

(a) setting out the result of the review, and

(b) making such recommendations (if any) as the person considers appropriate.

(6) A copy of the report must be—

(a) laid before Parliament, and

(b) published in such manner as the Treasury think fit.

(7) Any expenses reasonably incurred in the conduct of the review are to be met by the Treasury out of money provided by Parliament.

Right to obtain documents and information

7G

(1) A person conducting an examination under section 7D or a review under section 7F—

(a) has a right of access at any reasonable time to any document the person may reasonably require for the purposes of the examination or review, and

(b) may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.

(2) Subsection (1) applies to documents in the custody or under the control of—

(a) the Bank;

(b) the auditor or auditors appointed by the Bank under section 7(5).

(3) In the case of an examination under section 7D(1)(b), subsection (1) also applies to documents in the custody or under the control of—

(a) the company to which the examination relates;

(b) the auditor or auditors of that company.

(4) An obligation imposed on a person as a result of the exercise of the powers conferred by subsection (1) is enforceable by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

7H

Section 353A of the Financial Services and Markets Act 2000 (FCA not to disclose certain information received from the Bank) applies in relation to the Comptroller and Auditor General and the National Audit Office as it applies in relation to the Financial Conduct Authority.

Consequential amendments.

Financial stability strategy

Objectives of the Financial Policy Committee

Specification of matters relevant to economic policy

Directions to FCA or PRA requiring macro-prudential measures

Compliance with directions under section 9H

Revocation of directions under section 9H

Further provisions about directions under section 9H

Recommendations to other persons

Meetings between Governor and Chancellor of the Exchequer

Directions requiring information or documents

Operational responsibility.

Objectives.

Publication of statements about decisions.

Power to obtain information.

Reports.

PART 3A — Prudential regulation

30A

(1) There is to be a committee of the Bank known as the Prudential Regulation Committee of the Bank of England.

(2) The Prudential Regulation Committee is to consist of—

(a) the Governor of the Bank,

(b) the Deputy Governor for financial stability,

(d) the Deputy Governor for prudential regulation,

(e) the Chief Executive of the Financial Conduct Authority,

(f) one member appointed by the Governor of the Bank with the approval of the Chancellor of the Exchequer, and

(g) at least 6 members appointed by the Chancellor of the Exchequer.

(3) The functions of the Prudential Regulation Committee are—

(a) its functions by virtue of section 2A of the Financial Services and Markets Act 2000 (which provides for the Bank's functions as the Prudential Regulation Authority to be exercised by the Bank acting through the Prudential Regulation Committee), and

(b) the functions conferred on it by this Act.

(4) Schedule 6A has effect with respect to the Prudential Regulation Committee.

30B

(1) The Treasury may at any time by notice in writing to the Prudential Regulation Committee make recommendations to the Committee about aspects of the economic policy of Her Majesty's Government to which the Committee should have regard—

(a) when considering how to advance the objectives of the Prudential Regulation Authority, and

(b) when considering the application of the regulatory principles set out in section 3B of the Financial Services and Markets Act 2000.

(2) The Treasury must make recommendations under subsection (1) at least once in each Parliament.

(2A) The Prudential Regulation Committee must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—

(a) action that the Prudential Regulation Committee has taken or intends to take in accordance with the recommendation, or

(b) the reasons why the Prudential Regulation Committee has not acted or does not intend to act in accordance with the recommendation.

(2B) The notice under subsection (2A) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).

(2C) Where the Prudential Regulation Committee has given notice under subsection (2A) in relation to a recommendation, it must by notice in writing update the Treasury on the matters mentioned in subsection (2A)(a) and (b) before the end of each subsequent period of 12 months.

(2D) Subsection (2C) does not apply if the Treasury have notified the Prudential Regulation Committee in writing that no update (or further update) is required.

(2E) The Prudential Regulation Committee is not required under subsection (2A) or (2C) to provide any information whose publication would in the opinion of the Committee be against the public interest.

(3) The Treasury must—

(a) publish in such manner as they think fit any notice given under subsection (1), (2A) or (2C), and

(b) lay a copy of it before Parliament.

30C

(1) The Bank must make arrangements to ensure that the discharge of its resolution functions (as defined by section 7D(10)) is operationally independent of the discharge of its functions as the PRA.

(2) The Bank must prepare and issue a statement of its arrangements under subsection (1).

(3) If there are material changes to the arrangements, it must prepare and issue a revised statement.

(4) The Bank must consult the Treasury before issuing a statement under subsection (2) or a revised statement under subsection (3).

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General interpretation.

Decisions otherwise than at meetings

15

(1) The Committee may take a decision on a matter without a meeting if—

(a) a majority of eligible members indicate in writing their agreement to the decision,

(b) the eligible members who indicate in writing their agreement to the decision would have constituted a quorum at a meeting of the Committee, and

(2) “Eligible members” are members of the Committee who would have been entitled to vote on the matter if the matter had been proposed for decision at a meeting of the Committee.

Power to determine own procedure

16

Subject to paragraphs 11, 14 and 15, the Committee is to determine its own procedure.

13B

(1) If a member of the Committee (“M”) has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Committee—

(a) M must disclose that interest to the Committee when it considers the dealing or business, and

(b) the Committee must decide whether M is to be permitted to participate in any proceedings of the Committee relating to any question arising from its consideration of the dealing or business, and if so to what extent and subject to what conditions (if any).

(2) The Bank must issue and maintain a code of practice describing how members of the Committee and the Committee are to comply with sub-paragraph (1).

(3) The Bank may at any time revise or replace the code.

(4) Before issuing, revising or replacing the code, the Bank must consult the Treasury.

(5) The Bank must publish the current version of the code in whatever manner it sees fit.

(6) The Committee must comply with the code when taking decisions under sub-paragraph (1)(b).

SCHEDULE 6A

Interpretation

1

In this Schedule—

“chief executive for prudential regulation” means the Deputy Governor for prudential regulation, acting in his or her capacity as a member of the Committee or by virtue of a delegation under paragraph 17;

“the Committee” means the Prudential Regulation Committee;

“prudential regulation strategy” means the strategy determined by the Prudential Regulation Authority under section 2E of the Financial Services and Markets Act 2000.

Appointment of members by Chancellor

2

Before appointing a person as a member of the Committee under section 30A(2)(g), 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.

Term of office of appointed members

3

(1) Appointment as a member of the Committee under section 30A(2)(f) or (g) is to be for a period of 3 years, but this is subject to sub-paragraph (2) and to paragraph 5.

(2) Initially some appointments may be for shorter and different periods so as to secure that appointments expire at different times.

4

(1) A person may not be appointed as a member of the Committee under section 30A(2)(g) more than twice.

(2) For this purpose an appointment which by virtue of paragraph 3(2) is for a period of less than 3 years is to be disregarded.

5

(1) If it appears to the Chancellor of the Exchequer that in the circumstances it is desirable to do so, the Chancellor may, before the end of the term for which a person is appointed as a member of the Committee under section 30A(2)(g), extend the person's term of office on one occasion for a specified period of not more than 6 months.

(2) The term being extended may be the person's first or second term or, in a case where paragraph 4(2) allows a third term, the person's third term.

(3) If a person whose first term of office is extended is subsequently re-appointed under section 30A(2)(g)—

(a) the length of the second term is to be reduced by a period equal to the extension of the first term, but

(b) the second term may itself be extended under sub-paragraph (1).

(4) In a case where a person's second term of office is extended and paragraph 4(2) allows a third term, sub-paragraph (3) is to be read as if the references to first and second terms were references to second and third terms respectively.

6

(1) A person appointed under section 30A(2)(f) or (g) may resign the office by written notice to the Bank.

(2) Where the notice relates to a person appointed under section 30A(2)(g) the Bank must give a copy of the notice to the Treasury.

Terms and conditions of appointment

7

(1) The terms on which a person is appointed as a member of the Committee under section 30A(2)(g) must be such as—

(a) to secure that the member is not subject to direction by the Bank or the Treasury,

(b) to require the member not to act in accordance with the directions of any other person, and

(c) to prohibit the member from acquiring any financial or other interests that have a material effect on the extent of the functions as member that it would be proper for the member to discharge.

(2) The terms and conditions on which a person holds office as a member of the Committee appointed under section 30A(2)(g) are to be determined by the court of directors.

Qualification for appointment

8

(1) The following persons are disqualified for appointment under section 30A(2)(f) or (g)—

(a) a minister of the Crown;

(b) a person serving in a government department in employment in respect of which remuneration is paid out of money provided by Parliament.

(2) The following persons are disqualified for appointment under section 30A(2)(g)—

(a) a member of the Financial Policy Committee of the Bank appointed under section 9B(1)(e);

(b) a member of the Monetary Policy Committee of the Bank appointed under section 13(2)(c).

Removal of appointed members

9

(1) A person appointed under section 30A(2)(f) or (g) vacates office on becoming a person to whom paragraph 8(1) applies.

(2) The court of directors of the Bank may, with the consent of the Chancellor of the Exchequer, remove a member appointed under section 30A(2)(f) or (g) (“M”) if it is satisfied—

(a) that M has been absent from 3 or more meetings of the Prudential Regulation Committee without the Committee's consent,

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

(3) The court of directors may, with the consent of the Chancellor of the Exchequer, also remove a member appointed under section 30A(2)(g) (“M”) if it is satisfied that in all the circumstances M's financial or other interests are such as substantially to affect the functions as member which it would be proper for M to discharge.

Decision making

10

(1) Decisions of the Committee must be taken either—

(a) at a meeting of the Committee in accordance with paragraphs 11 to 15, or

(b) in writing in accordance with paragraph 16.

(2) Subject to paragraphs 11 to 16, the Committee is to determine its own procedure.

Meetings

11

The Governor of the Bank or any Deputy Governor of the Bank who is a member of the Committee may summon a meeting at any time by giving such notice as the person giving the notice thinks the circumstances require.

12

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

(2) The quorum is to be determined by the Committee, but it must be not less than 3 and of those 3—

(a) one must be the Governor of the Bank, the Bank's Deputy Governor for financial stability or the Bank's Deputy Governor for markets and banking,

(b) unless both the Governor and the Bank's Deputy Governor for financial stability are present, one must be the Bank's Deputy Governor for prudential regulation, and

(3) The chair is to be taken by the Governor of the Bank or, if the Governor is not present, by the Deputy Governor for financial stability or the Deputy Governor for markets and banking.

(4) The person chairing the meeting must seek to ensure that decisions of the Committee are reached by consensus wherever possible.

(5) Where that person forms the opinion that consensus cannot be reached, a decision is to be taken by a vote of all those members present at the meeting (subject to paragraphs 13 and 14).

(6) In the event of a tie, the person chairing the meeting is to have a second casting vote.

13

The chief executive of the Financial Conduct Authority must not take part in any discussion by or decision of the Committee which relates to—

(a) the exercise of any functions of the Prudential Regulation Authority in relation to a particular person, or

(b) a decision not to exercise those functions.

14

(1) If a member of the Committee (“M”) has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Committee—

(a) M must disclose that interest to the Committee when it considers the dealing or business, and

(b) the Committee must decide whether M is to be permitted to participate in any proceedings of the Committee relating to any question arising from its consideration of the dealing or business, and if so to what extent and subject to what conditions (if any).

(2) The Bank must issue and maintain a code of practice describing how members of the Committee and the Committee are to comply with sub-paragraph (1).

(3) The Bank may at any time revise or replace the code.

(4) Before issuing, revising or replacing the code, the Bank must consult the Treasury.

(5) The Bank must publish the current version of the code in whatever manner it sees fit.

(6) The Committee must comply with the code when taking decisions under sub-paragraph (1)(b).

15

(1) The Committee may determine circumstances in which a member who is not present at, but is in communication with, a meeting is to be treated as present at it for the purposes of paragraph 12.

(2) The Committee may invite other persons to attend, or to attend and speak at, any meeting of the Committee.

Decisions otherwise than at meetings

16

(1) The Committee may take a decision on a matter without a meeting if—

(a) a majority of eligible members indicate in writing their agreement to the decision,

(b) the eligible members who indicate in writing their agreement to the decision would have constituted a quorum at a meeting of the Committee, and

(2) “Eligible members” are members of the Committee who would have been entitled to vote on the matter if the matter had been proposed for decision at a meeting of the Committee.

Delegation of functions

17

(1) The Committee may delegate such of its functions as it thinks fit to—

(a) a member of the Committee,

(b) a sub-committee of the Committee consisting of—

(i) members of the Committee, or

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

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

This is subject to sub-paragraphs (2) and (9).

(2) The Committee must delegate to the chief executive for prudential regulation the following functions—

(a) preparing for consideration by the Committee drafts of a prudential regulation strategy and any proposed revisions to that strategy;

(b) preparing for consideration by the Committee drafts of the annual budget required by paragraph 18 and any proposed variations of that budget;

(d) the day to day implementation of the prudential regulation strategy.

This is subject to sub-paragraph (9).

(3) A delegation under sub-paragraph (2)—

(a) must identify any decisions (within sub-paragraph (9) or otherwise) that are not included in the delegation;

(b) may be on such terms and subject to such conditions as the Committee thinks fit.

(4) Those terms and conditions—

(a) may include provision about the manner of the exercise of the delegated functions;

(b) may be revised by the Committee from time to time.

(5) Sub-paragraph (2) does not apply in the event of a vacancy in the office of Deputy Governor for prudential regulation.

(6) The Bank must publish a statement setting out—

(a) the functions which the Committee has delegated to the chief executive for prudential regulation,

(b) the terms and conditions on which each delegation is made, and

(7) If there is a material change to any of those matters, the Bank must publish a revised statement.

(8) The requirement to delegate the functions mentioned in sub-paragraph (2) to the chief executive for prudential regulation does not prevent further delegation of those functions by the chief executive.

(9) The Committee may not delegate the following functions—

(a) reporting to the Chancellor of the Exchequer under paragraph 19;

(b) making rules under the Financial Services and Markets Act 2000;

(d) giving and reviewing guidance under section 2I of that Act;

(e) giving and revoking directions under section 3I, 3J, 3M, 316 or 318 of that Act;

(f) issuing statements under section 63ZD, 63C, 69, 142V, 192H, 192N, 210 or 345D of that Act;

(fa) making technical standards in accordance with Chapter 2A of Part 9A of that Act;

(g) issuing statements under section 80 of the Financial Services Act 2012.

(h) making EU Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment etc.) (EU Exit) Regulations 2018.

Prudential regulation budget

18

(1) The Committee must, with the approval of the court of directors, for each of the Bank's financial years adopt an annual budget for the Bank's functions as the Prudential Regulation Authority.

(2) The budget must be adopted before the start of the financial year to which it relates.

(3) The Committee may, with the approval of the court of directors, vary the budget for a financial year at any time after its adoption.

(4) The Bank must publish each budget, and each variation of a budget, in whatever way it thinks appropriate.

Annual reports

19

At least once a year the Committee must make a report to the Chancellor of the Exchequer on—

(a) the adequacy of the resources allocated, in the period to which the report relates, to the Bank's functions as the Prudential Regulation Authority, and

(b) the extent to which the exercise of the Bank's functions as the Prudential Regulation Authority is independent of the exercise of its other functions.

Financial Stability Committee: supplemental

Oversight functions of court of directors

Oversight Committee: procedure

Publication of reports of performance reviews

Annual report by the Bank.

Accounts of companies wholly owned by the Bank

Accounts of Bank companies carrying on activities indemnified by Treasury

Right to obtain documents and information

Consequential amendments.

Financial stability strategy

Objectives of the Financial Policy Committee

Specification of matters relevant to economic policy

Directions to FCA or PRA requiring macro-prudential measures

Revocation of directions under section 9H

Further provisions about directions under section 9H

Statements of policy by Financial Policy Committee

Recommendations to other persons

Meetings between Governor and Chancellor of the Exchequer

Directions requiring information or documents

Operational responsibility.

Objectives.

Publication of statements about decisions.

Power to obtain information.

Reports.

General interpretation.

Memorandum of understanding

Consequential amendments.

Financial stability strategy

Objectives of the Financial Policy Committee

Specification of matters relevant to economic policy

Directions to FCA or PRA requiring macro-prudential measures

Compliance with directions under section 9H

Revocation of directions under section 9H

Further provisions about directions under section 9H

Statements of policy by Financial Policy Committee

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