Bank of England Act 1998

[F1 7D Examination by Comptroller and Auditor General U.K.

(1) The Comptroller and Auditor General (“the Comptroller”) may carry out examinations into—

(a) the economy, efficiency and effectiveness with which the Bank has used its resources in discharging its functions;

(b) the economy, efficiency and effectiveness with which a Bank company has used its resources in discharging its functions.

(2) An examination under this section may be limited to such functions (however described) of the Bank or the Bank company as the Comptroller considers appropriate.

(3) An examination under this section is not to be concerned with the merits of the Bank's policy objectives.

(4) An examination under this section is not to be concerned with the merits of—

(a) policy decisions taken by the Financial Policy Committee, the Monetary Policy Committee or the Prudential Regulation Committee;

(b) policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the supervision of payment systems, settlement systems [F2 , central securities depositories] or clearing houses, so far as the decisions relate to that supervision.

(5) Subject to subsection (6), an examination under this section is not to be concerned with the merits of policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the exercise of any of the Bank's resolution functions, so far as the decisions relate to those functions.

(6) Where the Bank has exercised relevant resolution functions in relation to a financial institution, subsection (5) does not prevent an examination under this section being concerned with the merits of policy decisions within that subsection which are relevant to the Bank's exercise of its resolution functions in relation to that institution (whether or not those policy decisions are also relevant to other financial institutions).

(7) “Relevant resolution functions” are—

(a) any of the stabilisation powers;

(b) any of the Bank's functions (other than its functions as the Prudential Regulation Authority) under or by virtue of—

(i) Part 2 or 3, or section 233, of the Banking Act 2009,

(ii) Part 6 of the Financial Services (Banking Reform) Act 2013.

(8) Before carrying out an examination under this section, the Comptroller must consult the court of directors of the Bank.

(9) The Comptroller may report to the House of Commons the results of any examination carried out by the Comptroller under this section.

(10) For the purposes of this section—

• “ Bank company ” means—

  (a)

  a company which is a subsidiary undertaking of the Bank, within the meaning of section 1162 of the Companies Act 2006;

  (b)

  a company not within paragraph (a) in respect of which a direction under section 7C(2) has effect;

• “ resolution functions ” means the Bank's functions (other than its functions as the Prudential Regulation Authority) under or by virtue of—

  (a)

  Parts 1 to 3, and section 233, of the Banking Act 2009,

  (b)

  Part 6 of the Financial Services (Banking Reform) Act 2013,

  (c)

  the Bank Recovery and Resolution ( No. 2) Order 2014 ( S.I. 2014/3348);

• “ stabilisation powers ” has the same meaning as in the Banking Act 2009 (see section 1(4) of that Act).

(11) Section 6 of the National Audit Act 1983 (Comptroller may carry out economy, efficiency and effectiveness examinations) does not apply to the Bank or a Bank company.]

Textual Amendments

F1 Ss. 7D-7H inserted (6.7.2016 for the insertion of ss. 7D, 7E, 7G, 7H, 1.3.2017 in so far as not already in force) by Bank of England and Financial Services Act 2016 (c. 14), ss. 11, 41(3) (with Sch. 3); S.I. 2016/627, reg. 2(1)(l); S.I. 2017/43, reg. 2(b)

F2 Words in s. 7D(4)(b) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 9(2) (with regs. 7(4), 9(1))