SCHEDULES

SCHEDULE 2Amendments relating to Part 1

PART 1Bank of England Act 1998

I11

The Bank of England Act 1998 is amended as follows.

I142

In section 2 (functions of court of directors), for subsection (5) substitute—

5

Subsections (2) to (4) are subject to—

a

section 2A (Financial Stability Objective);

b

section 11 (objectives in relation to monetary policy);

c

Part 1A of the Financial Services and Markets Act 2000 (objectives and strategy of the Prudential Regulation Authority).

I153

In section 2A(2) (financial stability objective) for “, the Financial Conduct Authority and the Prudential Regulation Authority)” substitute “ and the Financial Conduct Authority) ”.

I164

1

Section 3A (oversight functions) is amended as follows.

2

In subsection (2)(a)—

a

in sub-paragraph (i), after “Act” insert “ , the objectives specified in relation to the Prudential Regulation Authority in Part 1A of the Financial Services and Markets Act 2000 ”;

b

omit the “and” at the end of sub-paragraph (ii);

c

for sub-paragraph (iii) substitute—

iii

the Bank's strategy determined under section 2,

iv

the Bank's financial stability strategy determined under section 9A, and

v

the strategy of the Prudential Regulation Authority determined under section 2E of the Financial Services and Markets Act 2000;

3

In subsection (4) omit paragraphs (c) to (h).

I25

1

Section 3C (reviews) is amended as follows.

2

In subsection (1)—

a

after “of its” insert “ oversight ”;

b

for “Oversight Committee” substitute “ court of directors ”;

c

in paragraphs (a) and (b) for “Committee” substitute “ court of directors ”.

3

In subsection (3)(a) for “by the Committee in the discharge of any of its” substitute “in relation to the discharge of any of the court's”.

4

Omit subsection (4).

5

In subsection (5) for “the Committee must have regard” substitute “ regard must be had ”.

I36

In section 3D(1) (publication of reports of performance reviews) for “Oversight Committee” substitute “ court of directors ”.

I47

In section 3E(2) (recommendations resulting from review) for “Oversight Committee” substitute “ court of directors ”.

8

I51

Section 3F (oversight: further provisions) is amended as follows.

2

In subsection (1)—

I5a

for “Oversight Committee” substitute “ court of directors ”;

I5b

after “of its” insert “ oversight ”;

I17c

for “or the Monetary Policy Committee” substitute “ , the Monetary Policy Committee or the Prudential Regulation Committee ”.

3

In subsection (2)—

I5a

for “Oversight Committee” substitute “ court of directors ”;

I17b

for “or the Monetary Policy Committee” substitute “ , the Monetary Policy Committee or the Prudential Regulation Committee for the purposes of exercising its oversight functions ”.

4

After subsection (2) insert—

2A

But a member of the court of directors who has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Prudential Regulation Committee may not, under the powers conferred by this section—

a

obtain access to any documents relating to the dealing or business, or

b

attend any proceedings of the Prudential Regulation Committee relating to any question arising from its consideration of the dealing or business.

5

In subsection (3)—

a

in paragraph (a)—

I17i

after “Policy Committee” insert “ , the Monetary Policy Committee or the Prudential Regulation Committee ”;

I5ii

for “Oversight Committee” substitute “ court of directors ”;

I17b

omit the “or” at the end of paragraph (b);

I17c

at the end of paragraph (c) insert

, or

d

the powers of the Prudential Regulation Committee under paragraph 15(2) of Schedule 6A.

I56

In the heading, for “Committee” substitute “ functions ”.

9

I61

Section 4 (annual report by the Bank) is amended as follows.

I62

For subsection (2)(a) substitute—

a

a report by the court of directors on the matters which it reviews, monitors or otherwise considers in the performance of its oversight functions (as defined by section 3A(2)),

I183

In subsection (2)(b)—

a

for “statement” substitute “ statements ”;

b

after “7(2)” insert “ and (2A) ”;

c

for “it” substitute “ them ”.

I64

Omit subsection (3).

I185

After subsection (6) insert—

7

The Chancellor may comply with subsection (6) by laying a document containing a report under this section together with a report by the Prudential Regulation Authority under paragraph 19 of Schedule 1ZB to the Financial Services and Markets Act 2000.

I1910

Omit section 7A(9)(a) (definition of “qualifying company”).

I711

In section 9B(4) (Financial Policy Committee) for “Oversight Committee” substitute “ court of directors of the Bank ”.

I2012

In section 9O (FPC recommendations within the Bank), after subsection (4) insert—

5

Recommendations by the Committee to the PRA are to be made under section 9Q (and not under this section).

I2113

1

Section 9Y (directions requiring information or documents) is amended as follows.

2

In subsection (2) for “or the PRA (“the regulator”) requiring the regulator” substitute “ requiring it ”.

3

In subsection (3) for “regulator”, in each place it occurs, substitute “ FCA ”.

4

In subsection (4) omit—

a

the “and” at the end of paragraph (a);

b

paragraph (b).

5

In the italic heading before section 9Y, omit “or PRA”.

I2214

1

Section 9Z (further provisions about directions under section 9Y) is amended as follows.

2

In subsection (2)—

a

omit “or the PRA (“the regulator”)”;

b

for “regulator”, in the second place it occurs, substitute “ FCA ”.

3

In subsection (4), for “regulator to which it is given” substitute “ FCA ”.

I815

In section 14 (publications of statements about decisions)—

a

in subsection (1) after “As soon as” insert “ reasonably ”;

b

in subsection (5) after “As soon as” insert “ reasonably ”.

I916

1

Section 16 (functions of Oversight Committee) is amended as follows.

2

In subsection (1) for “Oversight Committee” substitute “ court of directors of the Bank ”.

3

In subsection (2) for “the function of the Oversight Committee” substitute “ the court's function ”.

4

In the heading, for “Oversight Committee” substitute “ court of directors ”.

I1017

In section 18(6) (reports) after “as soon as” insert “ reasonably ”.

I1118

In section 40(2) (orders) after “under—” insert— “ section 1A(1), ”.

I2319

1

Schedule 1 (court of directors) is amended as follows.

2

In paragraph 8(2) for “Chief Executive of the Prudential Regulation Authority” substitute “ chief executive for prudential regulation (see Schedule 6A) ”.

3

In paragraph 11(1), after paragraph (c) insert—

d

a committee consisting of officers, employees or agents of the Bank.

20

I121

Schedule 2A (Financial Policy Committee) is amended as follows.

I122

In paragraph 5 for “Oversight Committee” substitute “ court of directors of the Bank ”.

I243

In paragraph 6 for sub-paragraph (2) substitute—

2

The following persons are disqualified for appointment under section 9B(1)(e)—

a

a member of the Monetary Policy Committee of the Bank appointed under section 13(2)(c);

b

a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

I124

In paragraph 9—

a

in sub-paragraph (1) for “Oversight Committee” substitute “ court of directors of the Bank ”;

b

in sub-paragraph (2) for “Oversight Committee” substitute “ court of directors ”.

I125

In paragraph 11—

a

in sub-paragraph (2)(b) for “either” substitute “ one ”;

b

omit sub-paragraph (8).

I126

In paragraph 14—

a

the existing text becomes sub-paragraph (1);

b

after that sub-paragraph insert—

2

The Bank must issue and maintain a code of practice describing how members of the Committee and the Committee are to comply with sub-paragraph (1).

3

The Bank may at any time revise or replace the code.

4

Before issuing, revising or replacing the code, the Bank must consult the Treasury.

5

The Bank must publish the current version of the code in whatever manner it sees fit.

6

The Committee must comply with the code when taking decisions under sub-paragraph (1)(b).

I127

After paragraph 14 insert—

Decisions otherwise than at meetings

15

1

The Committee may take a decision on a matter without a meeting if—

a

a majority of eligible members indicate in writing their agreement to the decision,

b

the eligible members who indicate in writing their agreement to the decision would have constituted a quorum at a meeting of the Committee, and

c

any other requirements determined by the Committee are met.

2

“Eligible members” are members of the Committee who would have been entitled to vote on the matter if the matter had been proposed for decision at a meeting of the Committee.

Power to determine own procedure

16

Subject to paragraphs 11, 14 and 15, the Committee is to determine its own procedure.

21

I131

Schedule 3 (Monetary Policy Committee) is amended as follows.

I132

In paragraph 4(2) for “Oversight Committee” substitute “ court of directors of the Bank ”.

I253

For paragraph 5A substitute—

5A

The following persons are disqualified for appointment under section 13(2)(c)—

a

a member of the Financial Policy Committee of the Bank appointed under section 9B(1)(e);

b

a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

I134

In paragraph 8—

a

for “have executive responsibility” substitute “ carry out monetary policy analysis ”;

b

omit the words from “for” to the end.

I135

In paragraph 9(1)—

a

for “Oversight Committee” substitute “ court of directors of the Bank ”;

b

in paragraph (a) for “meetings of the Monetary Policy Committee for more than 3 months” substitute “ 3 or more meetings of the Monetary Policy Committee ”.

I136

After paragraph 9(1) insert—

1A

The court of directors may, with the consent of the Chancellor of the Exchequer, also remove a member appointed under section 13(2)(c) if it is satisfied that in all the circumstances his financial or other interests are such as substantially to affect the functions as member which it would be proper for him to discharge.

I137

In paragraph 14 for “submit a monthly” substitute “ , at least 8 times in each calendar year, submit a ”.

I2622

1

Schedule 7 (restriction on disclosure of information) is amended as follows.

2

In paragraph 2(1)—

a

omit the “or” at the end of sub-paragraph (b);

b

at the end of sub-paragraph (c) insert

or

d

its functions as the Prudential Regulation Authority.

3

In paragraph 3(1), in column 1 of the table, in the entry for the Financial Conduct Authority or the Prudential Regulation Authority omit “or the Prudential Regulation Authority”.