(1)There shall continue to be a court of directors of the Bank.
[F1(2)The court shall consist of the following directors appointed by Her Majesty—
(a)a Governor,
(b)a Deputy Governor for financial stability,
(c)a Deputy Governor for monetary policy,
(d)a Deputy Governor for prudential regulation, and
(e)not more than 9 non-executive directors.]
F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Schedule 1 shall have effect with respect to the court.
Textual Amendments
F1 S. 1(2) substituted for s. 1(2)(2A) (19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21) , ss. 1(1) , 122(3) (with Sch. 20 ); S.I. 2013/113 , art. 2(2) , Sch. Pt. 4 ; S.I. 2013/423 , art. 3 , Sch.
F2 S. 1(3) repealed (1.4.2013) by Financial Services Act 2012 (c. 21) , s. 122(3) , Sch. 19 (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
(1)The court of directors of the Bank shall manage the Bank’s affairs, other than the formulation of monetary policy.
(2)In particular, the court’s functions under subsection (1) shall include determining the Bank’s objectives (including objectives for its financial management) and strategy.
(3)In determining the Bank’s objectives and strategy, the court’s aim shall be to ensure the effective discharge of the Bank’s functions.
(4)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.
[F3(5)Sections 2A and 11 set objectives for the Bank in relation to financial stability and monetary policy; and subsections (2) to (4) above are subject to those sections.]
Textual Amendments
F3 S. 2(5) added (1.6.2009) by Banking Act 2009 (c. 1) , ss. 238(2) , 263(1) (with s. 247 ); S.I. 2009/1296 , art. 2 , Sch. para. 1
(1)An objective of the Bank shall be to [F5protect and enhance] the stability of the financial [F6system] of the United Kingdom (the “Financial Stability Objective”).
(2)In pursuing the Financial Stability Objective the Bank shall aim to work with other relevant bodies (including the Treasury [F7, the Financial Conduct Authority and the Prudential Regulation Authority)].
F8(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F4 Ss. 2A-2C inserted (1.6.2009) by Banking Act 2009 (c. 1) , ss. 238(1) , 263(1) (with s. 247 ); S.I. 2009/1296 , art. 2 , Sch. para. 1
F5 Words in s. 2A(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 2(2)(a) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
F6 Word in s. 2A(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 2(2)(b) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
F7 Words in s. 2A(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 2(3) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
F8 S. 2A(3) omitted (1.4.2013) by virtue of Financial Services Act 2012 (c. 21) , ss. 2(4) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F4 Ss. 2A-2C inserted (1.6.2009) by Banking Act 2009 (c. 1) , ss. 238(1) , 263(1) (with s. 247 ); S.I. 2009/1296 , art. 2 , Sch. para. 1
F9 S. 2B repealed (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 4(4) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F4 Ss. 2A-2C inserted (1.6.2009) by Banking Act 2009 (c. 1) , ss. 238(1) , 263(1) (with s. 247 ); S.I. 2009/1296 , art. 2 , Sch. para. 1
F10 S. 2C repealed (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 4(4) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)There is to be a sub-committee of the court of directors of the Bank (“the Oversight Committee”) consisting of the non-executive directors of the Bank.
(2)The functions of the Oversight Committee are—
(a)keeping under review the Bank's performance in relation to—
(i)the Bank's objectives (that is, the objectives specified in relation to it in this Act and the other objectives for the time being determined by the court of directors of the Bank),
(ii)the duty of the Financial Policy Committee under section 9C, and
(iii)the Bank's strategy as for the time being determined by the court of directors of the Bank (including its financial stability strategy);
(b)monitoring the extent to which the objectives set by the court of directors of the Bank in relation to the Bank's financial management have been met;
(c)keeping under review the internal financial controls of the Bank with a view to securing the proper conduct of its financial affairs;
(d)the functions conferred on the Oversight Committee by the provisions listed in subsection (4).
(3)The court of directors of the Bank may arrange for specified functions of the Bank to be discharged by the Oversight Committee.
(4)The provisions referred to in subsection (2)(d) are—
(a)section 9B (review of procedures followed by Financial Policy Committee);
(b)section 16 (review of procedures followed by Monetary Policy Committee);
(c)paragraph 14 of Schedule 1 (remuneration of Governor and Deputy Governors);
(d)paragraph 5 of Schedule 2A (terms and conditions of office of members of Financial Policy Committee appointed under section 9B(1)(e));
(e)paragraph 9 of that Schedule (removal of members of Financial Policy Committee appointed under section 9B(1)(d) or (e));
(f)paragraph 4(2) of Schedule 3 (terms and conditions of office of members of Monetary Policy Committee appointed under section 13(2)(c));
(g)paragraph 9 of that Schedule (removal of members of Monetary Policy Committee appointed under section 13(2)(b) or (c));
(h)paragraph 15 of Schedule 1ZB to the Financial Services and Markets Act 2000 (terms of service and remuneration of members of the governing body of the Prudential Regulation Authority).
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)The chair of the court (designated under paragraph 13 of Schedule 1) is to chair meetings of the Oversight Committee (when present).
(2)The Committee is to determine its own procedure, but this is subject to subsection (1) and subsection (5).
(3)The Committee may invite other persons to attend, or to attend and speak at, any meeting of the Committee.
(4)The Committee may delegate any of its functions to two or more of its members.
(5)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—
(a)M must disclose that interest to the Committee when it considers that dealing or business, and
(b)the Committee must decide whether M is to be permitted to participate in any proceedings of the Committee relating to any question arising from its consideration of the dealing or business, and if so to what extent and subject to what conditions (if any).
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)In the discharge of any of its functions, the Oversight Committee may arrange—
(a)for a review to be conducted under this section in relation to any matter by a person appointed by the Committee, and
(b)for the person conducting the review to make one or more reports to the Committee.
(2)The persons who may be appointed to conduct a review include an officer or employee of the Bank.
(3)A review under this section is a “performance review” if it—
(a)is arranged by the Committee in the discharge of any of its functions under section 3A(2)(a) and (b), and
(b)relates to past events.
(4)If the person to be appointed to conduct a performance review is an officer or employee of the Bank, the appointment requires the consent of the Governor of the Bank.
(5)In the case of a performance review, the Committee must have regard to the desirability of ensuring that sufficient time has elapsed—
(a)for the review to be effective, and
(b)to avoid the review having a material adverse effect on the exercise by the Bank of its functions.
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)The Bank must give the Treasury a copy of any report made to the Oversight Committee by a person appointed under section 3C to conduct a performance review (as defined by subsection (3) of that section).
(2)Subject to subsection (3), the Bank must also publish the report.
(3)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.
(4)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.
(5)Where the court of directors decides that publication of any information is no longer against the public interest, the Bank must publish the information.
(6)The Treasury must lay before Parliament a copy of any report or other information published by the Bank under this section.
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)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.
(2)The Oversight Committee must—
(a)monitor the Bank's response to the report, and
(b)if or to the extent that the Bank accepts the recommendations, monitor the implementation of the recommendations.
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)The documents to which the Oversight Committee is to have access in the discharge of its functions include documents considered, or to be considered, by the Financial Policy Committee or the Monetary Policy Committee.
(2)One or two members of the Oversight Committee may attend any meeting of the Financial Policy Committee or the Monetary Policy Committee, but a person attending by virtue of this subsection may not speak unless invited to do so by the person chairing the meeting.
(3)Subsection (2) does not affect—
(a)anything done in relation to the Financial Policy Committee by a member of that Committee who is also a member of the Oversight Committee,
(b)the powers of the Financial Policy Committee under paragraph 13 of Schedule 2A, or
(c)the powers of the Monetary Policy Committee under paragraph 13A of Schedule 3.]
Textual Amendments
F11 Ss. 3A-3F substituted for s. 3 (1.4.2013) by Financial Services Act 2012 (c. 21) , ss. 3(2) , 122(3) (with Sch. 20 ); S.I. 2013/423 , art. 3 ,
(1)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.
(2)A report under this section shall, in particular, contain—
[F12(a)a report by the Oversight Committee on the matters for which it is responsible, [F13...]
(aa)a report by the court of directors on the activities of the Financial Policy Committee of the Bank, and]
(b)a copy of the statement for the year prepared under section 7(2) and the report of the Bank’s auditors on it.
(3)The report mentioned in subsection (2)(a) shall, in particular, include a review of the Bank’s performance in relation to its objectives and strategy, as determined by the court of directors of the Bank, in the financial year to which the report under this section relates.
(4)A report under this section shall also contain—
(a)a statement of the rate or rates at which [F14non-executive directors] of the Bank have been remunerated in the financial year to which the report relates, and
(b)a statement of the Bank’s objectives and strategy, as determined by the court of directors of the Bank, for the financial year in which the report is made.
(5)The Bank shall publish every report under this section in such manner as it thinks appropriate.
(6)The Chancellor of the Exchequer shall lay copies of every report under this section before Parliament.
Textual Amendments
F12S. 4(2)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 3(3), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F13 S. 4(2)(aa) substituted for preceding word (1.4.2013) by Financial Services Act 2012 (c. 21) , s. 122(3) , Sch. 1 para. 1 (with Sch. 20 ); S.I. 2013/423 , art. 3 , Sch.
F14 Words in s. 4(4)(a) substituted (19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21) , s. 122(3) , Sch. 2 para. 4 (with Sch. 20 ); S.I. 2013/113 , art. 2(2) , Sch. Pt. 4 ; S.I. 2013/423 , art. 3 , Sch.
(1)The court of directors of the Bank shall have custody of the Bank’s seal.
(2)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.
(3)The affixing of the seal shall be attested by the signature of—
(a)two members of the court,
(b)one member of the court and the secretary to the court, or
(c)two other officers of the Bank authorised by the court for the purpose.