3 August 2018: The final policy was published in Policy Statement PS/EDMC18 'Enforcement Decision Making Committee'.
Summary of proposals
In this consultation paper (CP), the Bank of England (the Bank) sets out in detail how a new Enforcement Decision Making Committee (EDMC) will operate. The EDMC will strengthen the independence and robustness of the decision-making process by the Bank in any contested enforcement cases.
This follows on from an earlier CP which was issued in July 2016, in which the Bank proposed the establishment of the EDMC.
Both CPs respond directly to a recommendation within HM Treasury’s Review of enforcement decision-making at the financial services regulators (the HMT Review). Specifically, the HMT Review recommended that the PRA establish a functionally independent enforcement decision-making committee, composed of independent members with expertise suited to the PRA’s regulatory focus.
This proposed EDMC goes beyond the HMT Review’s recommendations by extending the model across regulatory areas where the Bank has been granted enforcement powers. At the time of consultation, these areas are the PRA, Financial Market Infrastructure (FMI) and Resolution. In relation to the regime governing Scottish and Northern Ireland banknotes, the Bank will be conducting a separate consultation with the authorised banks.
This consultation will be of interest to authorised deposit-takers and insurance firms, their professional advisers, their auditors and actuaries, and approved persons within the Senior Managers Regime. This consultation will also be relevant to any other firms or individuals who may be interested in the enforcement jurisdiction of the regimes operated under the auspices of the Bank, including: central counterparties, recognised payment systems, critical service providers and securities settlement systems.
Responses and next steps
Please address responses, comments or enquiries by Friday 2 February 2018 to:
Regulatory Action Division
Bank of England