The Bank of England and Financial Services Act 2016 will mean the Bank of England is better equipped to fulfil its vital role of overseeing monetary policy and financial stability for the whole of the UK. It began its passage through Parliament in October and includes the following measures:
- strengthening the governance and accountability of the Bank, by ending the subsidiary status of the Prudential Regulation Authority and allowing the National Audit Office to undertake value for money reviews of the Bank for the first time. These important new reforms will mean that the Bank of England continues to be an international example of best practice.
- taking further steps to protect tax payers from firm failure, by updating resolution planning and crisis management arrangements between the Bank and Treasury.
- ensuring that senior managers across the financial services industry can be held to account for failings that occur on their watch, through the extension of the Senior Managers and Certification regime to all authorised persons.
Governor of the Bank of England, Mark Carney said:
“By placing the Bank’s three major policy committees on the same statutory footing, by streamlining the MPC’s meeting schedule, and by further enhancing the transparency and governance of the Bank’s operations, this legislation will ensure the institution can operate more effectively as One Bank to promote good of the people of the United Kingdom by maintaining monetary and financial stability.”