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Part IU.K. Constitution, regulation and financial arrangements

Financial arrangementsU.K.

7 Accounts.U.K.

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

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

(a)a balance sheet as at the last day of the year, and

(b)a profit and loss account.

[F1(2A)The Bank shall also prepare for each of its financial years a statement of accounts in relation to—

(a)income received and assets accrued by the Bank by virtue of its functions as the Prudential Regulation Authority, and

(b)expenses and liabilities incurred by the Bank by virtue of its functions as the Prudential Regulation Authority.]

(3)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.

(4)The Bank may disregard a requirement to which it is subject under subsection (3) to the extent that it considers it [F2necessary to do so having regard to the Financial Stability Objective].

[F3(4A)In preparing a statement under subsection (2A) the Bank must comply with any directions given by the Treasury as to—

(a)the information to be contained in the statement and the manner in which it is to be presented, and

(b)the methods and principles according to which the statement is to be prepared.]

(5)The Bank shall appoint an auditor or auditors to audit its accounts, including any statement under subsection (2) [F4or (2A)] .

[F5(5A)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).]

(6)As soon as practicable after receiving the report of its auditors on a statement prepared under subsection (2) [F6or (2A)] , the Bank shall send a copy of—

(a)the report, and

(b)the statement,

to the Chancellor of the Exchequer.

(7)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).

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

[F7(8A)A direction under subsection (4A) or a notice under subsection (7) may be revoked by a further direction or notice.]

(9)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 [F8the Companies Act 2006] are for the time being subject under that Act [F9(except sections 412 and 413 (directors’ benefits))] in relation to the preparation of accounts under [F10section 394] of that Act.

Textual Amendments