UKPGA-1998-11 Bank of England Act 1998 UK

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

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

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Schedule 1 shall have effect with respect to the court.

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

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.

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

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

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.

The power in subsection (5)—

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.

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

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

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

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.

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

An objective of the Bank shall be to protect and enhance the stability of the financial system of the United Kingdom (the “Financial Stability Objective”).

In pursuing the Financial Stability Objective the Bank shall aim to work with other relevant bodies (including the Treasury and the Financial Conduct Authority).

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The oversight functions of the court of directors are—

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

In the discharge of any of its oversight functions, the court of directors may arrange—

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—

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

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

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

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).

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

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.

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.

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

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

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.

The court of directors must—

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.

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.

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—

Subsection (2) does not affect—

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.

A report under this section shall, in particular, contain—

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A report under this section shall also contain—

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

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

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.

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

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.

The affixing of the seal shall be attested by the signature of—

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

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

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

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.

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.

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

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

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).

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—to the Chancellor of the Exchequer.

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).

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

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

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.

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

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).

The Comptroller—

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

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.

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.

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.

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.

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.

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.

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

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.

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.

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

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).

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

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

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.

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.

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

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

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

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

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

The Comptroller—

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

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.

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.

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).

A direction given under subsection (2)—

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.

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.

After completing the examination the Comptroller must—

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

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

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

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.

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

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

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.

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).

“Relevant resolution functions” are—

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

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

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.

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.

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

The memorandum must in particular include provision—

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.

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

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.

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).

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

A copy of the report must be—

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

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

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

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—

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.

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. ”

In that section, at the end there is inserted—

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

In that Schedule, for paragraph 14 there is substituted—

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 ”.

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.

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

The court of directors must—

Before determining or revising the Bank's financial stability strategy, the court of directors must consult about a draft of the strategy or of the revisions—

The Financial Policy Committee may at any time make recommendations to the court of directors as to the provisions of the Bank's financial stability strategy.

The court of directors must determine the financial stability strategy of the Bank within 6 months of the coming into force of this section.

The court of directors must carry out and complete a review of the Bank's financial stability strategy before the end of each relevant period.

The relevant period is 3 years beginning with the date on which the previous review was completed, except that in the case of the first review the relevant period is the period of 3 years beginning with the date on which the strategy was determined under subsection (4).

The Bank must publish its financial stability strategy.

If the financial stability strategy is revised, the Bank must publish the revised strategy.

Publication under subsection (7) or (8) is to be in such manner as the Bank thinks fit.

There is to be a committee of the Bank (the “Financial Policy Committee”) consisting of—

The member appointed under subsection (1)(d) is to be a person who has executive responsibility within the Bank for the analysis of threats to financial stability.

Before appointing a person under subsection (1)(e), the Chancellor of the Exchequer must—

The court of directors of the Bank must keep the procedures followed by the Financial Policy Committee under review.

Schedule 2A has effect with respect to the Financial Policy Committee.

The Financial Policy Committee is to exercise its functions with a view to—

The responsibility of the Committee in relation to the achievement by the Bank of the Financial Stability Objective relates primarily to the identification of, monitoring of, and taking of action to remove or reduce, systemic risks with a view to protecting and enhancing the resilience of the UK financial system.

Those systemic risks include, in particular—

Subsections (1)(a) and (2) do not require or authorise the Committee to exercise its functions in a way that would in its opinion be likely to have a significant adverse effect on the capacity of the financial sector to contribute to the growth of the UK economy in the medium or long term.

In this Part “systemic risk” means a risk to the stability of the UK financial system as a whole or of a significant part of that system.

For the purposes of subsection (5) it is immaterial whether the risk arises in the United Kingdom or elsewhere.

In subsection (3)(c)—“credit growth” means the growth in lending by the financial sector to individuals in the United Kingdom and businesses carried on in the United Kingdom;“debt” means debt owed to the financial sector by individuals in the United Kingdom and businesses carried on in the United Kingdom;“leverage” means the leverage of the financial sector in the United Kingdom.

The Treasury may by notice in writing to the Financial Policy Committee specify for the purposes of section 9C(1)(b) what the economic policy of Her Majesty's Government is to be taken to be.

The Treasury must specify under subsection (1) the matter mentioned there—

Where the Treasury give notice under this section they must—

The Treasury may at any time by notice in writing to the Financial Policy Committee make recommendations to the Committee about—

The Treasury must make recommendations under subsection (1)(a) or (b) (“recommendations about the objective”)—

The Committee must respond to any recommendations made to it under subsection (1) by notifying the Treasury, in relation to each recommendation, of one or more of the following—

Notification under subsection (3) must be given or confirmed in writing.

The Treasury must—

In the exercise of its functions, other than its functions under section 9A(2) or (3), the Financial Policy Committee must have regard to the Bank's financial stability strategy.

In working with the FCA or the PRA or exercising functions in relation to either of them, the Committee must, so far as it is possible to do so while complying with section 9C(1), seek to avoid exercising the Committee's functions in a way that would prejudice—

In the exercise of its functions, the Committee must also have regard to—

The functions of the Financial Policy Committee are—

The court of directors may, with the consent of the Treasury, arrange for specified functions of the Bank to be discharged by the Financial Policy Committee.

The Financial Policy Committee may give a direction to the FCA or the PRA (“the regulator”) requiring the regulator to exercise its functions so as to ensure the implementation, by or in relation to a specified class of regulated persons, of a macro-prudential measure described in the direction.

“Regulated person” means—

“Macro-prudential measure” is to be read in accordance with section 9L.

The direction may relate to all regulated persons or to regulated persons of a specified description, but may not relate to a specified regulated person.

The direction—

The direction may not require its provisions to be implemented by specified means or within a specified period, but may include recommendations as to the means to be used and the timing of implementation.

A recommendation made under subsection (6) may be expressed to be one to which section 9Q(3) (duty to comply or explain) applies.

The direction may not require the regulator to do anything that it has no power to do, but the existence of the direction is relevant to the exercise of any discretion conferred on the regulator.

The direction may specify particular matters to which the regulator is or is not to have regard in complying with the direction, but those matters must be specified in relation to all regulated persons or a class of regulated person rather than a specified regulated person.

The direction may refer to a publication issued by the FCA, the PRA, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.

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In this section—“the Capital Requirements Regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms;“financial holding company” has the meaning given in Article 4(1)(20) of the Capital Requirements Regulation;“mixed financial holding company” has the meaning given in Article 4(1)(21) of the Capital Requirements Regulation.

The regulator must comply with a direction given to it under section 9H as soon as reasonably practicable.

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An order under section 9L may, in relation to cases where the regulator is complying with a direction under section 9H, exclude or modify any procedural requirement that would otherwise apply under FSMA 2000 in relation to the exercise by the regulator of its functions in pursuance of the direction.

The regulator to which a direction under section 9H is given must give the Financial Policy Committee one or more reports on how it is complying or has complied with the direction.

The Financial Policy Committee may give directions to the regulator specifying the times by which reports required by subsection (3) must be given to the Committee.

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“Regulator” has the same meaning as in section 9H.

The Financial Policy Committee may at any time by notice to the regulator revoke a direction under section 9H.

A direction under section 9H is to be taken to be revoked if the measure to which it relates ceases to be a macro-prudential measure, but this is subject to any provision made under section 9L(4)(e).

The revocation of a direction under section 9H does not affect the validity of anything previously done in accordance with it.

“Regulator” has the same meaning as in section 9H.

Each of the following must be in writing—

The Financial Policy Committee must give the Treasury a copy of any direction under section 9H or any notice revoking such a direction.

The Treasury may, if they think fit, lay before Parliament a copy of a direction under section 9H or a notice revoking such a direction.

Where a direction under section 9H, or a notice revoking such a direction, is included in a record published under section 9U, the Treasury must, if they have not already done so, lay before Parliament a copy of the direction or notice in the form in which it is published in the record.

For the purposes of section 9H a “macro-prudential measure” is a measure prescribed by the Treasury by order.

Before making an order under this section, the Treasury must—

In prescribing a measure, the order must specify whether the measure is prescribed in relation to the FCA, the PRA, or both.

An order under this section—

In relation to each macro-prudential measure prescribed under section 9L, the Financial Policy Committee must prepare and maintain a written statement of the general policy that it proposes to follow in relation to the exercise of its power of direction under section 9H so far as it relates to that measure.

The Committee may at any time alter or replace a statement maintained under this section.

The Bank must publish each statement maintained under this section.

Publication is to be in such manner as the Bank thinks fit.

Nothing in this section is to be regarded as preventing the Financial Policy Committee from exercising its power of direction under section 9H in relation to a macro-prudential measure, where it considers it necessary to do so by reason of urgency, before it has prepared a statement under this section in relation to that measure.

Except as provided by subsection (2), an order under section 9L is not to be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.

An order under section 9L may be made without a draft having been laid and approved as mentioned in subsection (1) if the order contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.

An order under section 9L made in accordance with subsection (2)—

The “relevant period” is a period of 28 days beginning with the day on which the order is made.

In reckoning the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.

The Financial Policy Committee may make recommendations within the Bank.

The recommendations may, in particular, relate to—

The Committee may not make recommendations about—

The recommendations must be made or confirmed in writing.

Recommendations by the Committee to the PRA are to be made under section 9Q (and not under this section).

The Financial Policy Committee may make recommendations to the Treasury.

The recommendations may, in particular, relate to the exercise by the Treasury of their power to make orders under—

The recommendations must be made or confirmed in writing.

The Committee may make a recommendation under subsection (2)(e) only if it considers that the exercise by the Treasury of their power to make an order under section 165A(2)(d) of FSMA 2000 in the manner proposed is desirable for the purposes of the exercise by the Committee of its functions.

Before giving a recommendation under subsection (2)(e), the Committee must consult the Treasury.

The Financial Policy Committee may make recommendations to the FCA and the PRA about the exercise of their respective functions.

The recommendations may relate to all regulated persons or to regulated persons of a specified description, but may not relate to the exercise of the functions of the FCA or the PRA in relation to a specified regulated person.

If the recommendations are expressed to be recommendations to which this subsection applies, the body to which they are made must as soon as reasonably practicable—

The recommendations, and any notification under subsection (3)(b), must be made or confirmed in writing.

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“Regulated person” has the same meaning as in section 9H.

The Financial Policy Committee may make recommendations to persons other than those mentioned in sections 9O to 9Q.

The recommendations must be made or confirmed in writing.

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

The specified powers are—

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.

The Financial Policy Committee must—

A review period is—

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.

The purpose of a review is—

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.

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.

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

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.

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

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

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

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

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

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—

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

Where the Committee—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.

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

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

A financial stability report must include—

A financial stability report must also include—

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.

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.

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.

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.

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

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

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

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.

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.

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

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.

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.

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.

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

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.

Any information or documents to which the direction relates are—

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

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

The Bank may require—

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.

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

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

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.

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.

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).

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

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

Where the Treasury give notice under this section they shall—

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.

The Committee shall consist of—

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

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

Schedule 3 shall have effect with respect to the Committee.

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.

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.

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.

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.

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.

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

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

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

Minutes of proceedings relating to—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).

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.

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.

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

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

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.

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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.

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

An undertaking is one to which this section applies if—

An undertaking falls within this subsection if it is a deposit-taker.

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

An undertaking falls within this subsection if it is a financial holding company.

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.

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.

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

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

“Deposit taker” means—

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

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

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

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

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

A report under this section shall contain—

A report under this section shall relate to—

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.

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

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.

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.

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.

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

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.

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.

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.

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

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

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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.

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

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

The Prudential Regulation Committee is to consist of—

The functions of the Prudential Regulation Committee are—

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

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—

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

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

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).

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.

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

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.

The Treasury must—

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.

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

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

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

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In exercising its FMI functions in a way that advances the Financial Stability Objective (and subject to that), the Bank must have regard to—

In exercising its FMI functions in a way that advances the Financial Stability Objective the Bank must, so far as reasonably possible, act in a way which, as a secondary objective, facilitates innovation in the provision of FMI services (including in the infrastructure used for that purpose) with a view to improving the quality, efficiency and economy of the services.

For the purposes of this Part the Bank’s “FMI functions” are the following functions so far as exercisable in relation to FMI entities—

In this Part—“FMI entities” means—a recognised central counterparty within the meaning of Part 18 of FSMA 2000 (see section 285(1)(b)(i) of that Act), a recognised CSD as defined by section 285(1)(e) of FSMA 2000, a third country central counterparty as defined by section 285(1)(d) of FSMA 2000, and a third country CSD as defined by section 285(1)(g) of FSMA 2000;“FMI services” means services provided by FMI entities as part of their business as FMI entities;“FSMA 2000” means the Financial Services and Markets Act 2000.

These are the regulatory principles referred to in section 30D(1)(a)—

For the purposes of subsection (1) “consumer” has the same meaning as in section 3B of FSMA 2000 (and for these purposes includes in particular persons who receive FMI services).

There is to be a committee of the Bank known as the Financial Market Infrastructure Committee (the “FMI Committee”).

The FMI Committee is to consist of—

The person appointed as chair under subsection (2)(a) must be the Governor, or a Deputy Governor, of the Bank.

A person is an independent member for the purposes of subsection (2)(b) if the person is an officer, employee or agent of the Bank—

For the purposes of subsection (4)(a)—

Before appointing a person under subsection (2)(b) the Bank must—

The following functions of the Bank are to be exercised by the Bank acting through the FMI Committee (and, except as authorised by this section, are not to be exercised in any other way)—

The FMI Committee may arrange for such of its functions as it thinks fit to be carried out only by, or after consultation with, the Governor of the Bank.

Except as provided by subsection (4), the FMI Committee may delegate such of its functions as it thinks fit to—

The FMI Committee may not delegate under subsection (3) its FMI functions under FSMA 2000 of making rules or technical standards (but this does not prevent arrangements under subsection (2) being made in respect of such functions).

The Bank must publish a statement setting out the following matters in respect of the FMI Committee—

If there is a material change in any of the matters contained in the statement the Bank must publish an updated statement.

Publication under this section is to be made in such manner as the Bank considers best designed to bring the statement to the attention of the public.

For the purposes of subsection (1)—

The Treasury may at any time by notice in writing to the FMI Committee make recommendations about aspects of the economic policy of His Majesty’s Government to which the Bank should have regard—

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

The Treasury must—

The FMI Committee must respond to each recommendation made under subsection (1) by notifying the Treasury in writing of—

The notice under subsection (4) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).

Where the FMI Committee has given notice under subsection (4) in relation to a recommendation, it must by notice in writing update the Treasury on the matters mentioned in subsection (4)(a) and (b) before the end of each subsequent period of 12 months.

Subsection (6) does not apply if the Treasury have notified the FMI Committee in writing that no update (or further update) is required.

The FMI Committee is not required under subsection (4) or (6) to provide any information whose publication would in the opinion of the Committee be against the public interest.

The Treasury may by order—

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.

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

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

An order under subsection (1) may—

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.

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.

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.

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—

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.

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.

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

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.

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.

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

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

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

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;

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.

This Act extends to Northern Ireland.

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

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

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

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

A person may not be appointed—

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.

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.

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.

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

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.

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.

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.

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).

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.

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.

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—

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).

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

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.

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

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

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

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

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.

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.

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

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

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The Chancellor of the Exchequer may designate—

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).

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

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.

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

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.

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.

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.

The Bank may impose a charge on eligible institutions in accordance with this Schedule.

The charge is to be known as the Bank of England levy (and is referred to in this Schedule as “the levy”).

For the purposes of this Schedule, an “eligible institution” is a person who, at any time during a levy year, is an authorised deposit-taker.

An “authorised deposit-taker” for these purposes is a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits, other than—

In this paragraph—“credit union” has the meaning given by section 31(1) of the Credit Unions Act 1979 or Article 2(2) of the Credit Unions (Northern Ireland) Order 1985;“friendly society” means a society that is registered within the meaning of the Friendly Societies Act 1974 or incorporated under the Friendly Societies Act 1992;“levy year” has the meaning given by paragraph 3.

The Treasury may by regulations—

For the purposes of this Schedule, a “levy year” is—

The day determined under sub-paragraph(1)(a) may not be before the day on which the Financial Services and Markets Act 2023 is passed.

The Bank must, in respect of a levy year—

The Bank may add to the anticipated levy requirement for a levy year such amount (if any) that—

For the purposes of this Schedule, a function of the Bank is a “policy function” if it is exercised in pursuit of—

In making a determination in accordance with sub-paragraph(1), the Bank must take account of any other amounts which are, or are likely to be, available in the levy year to fund policy functions (for example, amounts of the levy received in respect of a previous levy year or amounts available from sources other than the levy).

The Bank must publish a determination made in accordance with sub-paragraph(1)—

The reference in sub-paragraph(3) to the exercise of a function includes anything done in preparation for, to facilitate, or otherwise in connection with, the exercise of the function.

The amount of the levy that an eligible institution is liable to pay in respect of a levy year is to be determined by the Bank in accordance with regulations made by the Treasury.

Regulations under sub-paragraph(1) may—

Regulations made by virtue of sub-paragraph(2)(b) may include (among other things) provision—

Regulations under sub-paragraph(1) may include provision conferring a discretion on the Bank to determine specified matters (including matters mentioned in sub-paragraph(2)(b) or(3)).

Regulations made by virtue of sub-paragraph(4) may, in particular, confer a discretion—

In this section, “specified” means specified in the regulations.

The Bank must notify each eligible institution that is liable to pay the levy in respect of a levy year of the following matters—

A time notified in accordance with sub-paragraph(1)(c)(or if more than one time is notified, the earliest of them) may not be before the end of the period of 30 days beginning with the day on which the notification is given.

Notification may be given in such form or in such manner as the Bank considers appropriate (and may be given in a different form or manner to different eligible institutions or eligible institutions of a different description).

This paragraph applies where an eligible person has been notified—

Interest is payable, at the rate mentioned in sub-paragraph(3), on any part of the amount mentioned in sub-paragraph(1)(a) which remains unpaid after the time mentioned in sub-paragraph(1)(b).

The rate mentioned in this sub-paragraph is the rate equivalent to an annual percentage rate of 4% above the benchmark rate.

The “benchmark rate” is—

The Treasury may by regulations amend this paragraph so as to change the rate of interest payable on an unpaid amount of the levy.

The Bank may, by written notice, require an eligible institution to provide information or documents in connection with the levy.

The notice must specify—

Before making regulations under this Schedule the Treasury must consult—

When making regulations under this Schedule the Treasury must have regard to the financial needs of the Bank.

Regulations under this Schedule are to be made by statutory instrument.

Regulations under this Schedule may—

A statutory instrument containing (whether alone or with other provision) regulations under paragraphs 2(4) or 5(1) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

A statutory instrument containing only regulations under paragraph 8(5) is subject to annulment in pursuance of a resolution of either House of Parliament.

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.

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

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

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.

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.

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.

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

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.

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

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.

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

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

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—

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.

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

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.

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

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

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.

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

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.

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

At a meeting of the Committee—

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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—

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).

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

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

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

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

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

“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.

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.

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

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

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

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.

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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.

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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—

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.

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

The Committee shall meet at least once in any 10 week period.

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.

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

The quorum shall be 6, of whom—

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.

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

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

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

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—

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).

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

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

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

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

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”).

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.

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.

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.

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.

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.

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

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

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.

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.

Sub-paragraph (5) applies if—

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

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.

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.

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.

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

A scheme under paragraph 3 may also contain provision—

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.

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 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.

In particular, such a scheme may provide—

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

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

In subsection (6)—

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

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

In section 52(6)—

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

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

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

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

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

Section 176 is amended as follows.

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

For subsection (6) there is substituted—

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

Article 98 is amended as follows.

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

For paragraph (6) there is substituted—

The Building Societies Act 1986 is amended as follows.

In section 53, in subsection (5)—

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

In section 54(3A)—

The Pension Schemes Act 1993 is amended as follows.

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

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

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

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—

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.

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.

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

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

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.

Before making regulations under paragraph 1, the Authority shall—

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.

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

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.

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

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.

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.

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.

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

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

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.

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.

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.

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

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.

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

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.

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

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.

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

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

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

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—

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.

Decisions of the Committee must be taken either—

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

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

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

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

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).

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

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—

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).

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

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

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

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

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.

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

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

“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.

The Committee may delegate such of its functions as it thinks fit to—This is subject to sub-paragraphs (2) and (9).

The Committee must delegate to the chief executive for prudential regulation the following functions—This is subject to sub-paragraph (9).

A delegation under sub-paragraph (2)—

Those terms and conditions—

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

The Bank must publish a statement setting out—

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

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.

The Committee may not delegate the following functions—

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.

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

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

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

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

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

Except as permitted by the following provisions of this Schedule, restricted information shall not be disclosed by—without the consent of the person from whom the Bank obtained the information and, if different, the person to whom the information relates.

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

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—

“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.

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.

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

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.

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

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—

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.