The Financial Services Act 2012 brought major reforms to create a UK regulatory framework which is focused on the issues that matter and better equipped to deliver financial stability.
On 1 April 2013 the new legislation established an independent Financial Policy Committee (FPC) at the Bank. The Committee is charged with a primary objective of identifying, monitoring and taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC has a secondary objective to support the economic policy of the Government.
Previously, in February 2011, the Bank’s Court of Directors created an interim FPC to undertake, as far as possible, the future statutory role of FPC. The interim FPC held its first policy meeting in June 2011, and met on a quarterly basis thereafter.
The Committee publishes a record of its formal policy meetings, and is responsible for the Bank’s bi-annual Financial Stability Report.
The FPC is a statutory sub-committee of Court. Its members are the Governor, the three Deputy Governors, the Chief Executive of the Financial Conduct Authority (FCA), the Bank’s Executive Director for Financial Stability, four external members appointed by the Chancellor, and a non-voting representation of the Treasury.