(1)FSMA 2000 is amended as follows.
(2)After section 300H (inserted by section 11) insert—
(1)The Bank of England must keep under review generally any rules made by the Bank under this Act.
(2)Subsection (1) does not apply to rules made for the purpose of complying with a recommendation of the Financial Policy Committee of the Bank of England under section 9O of the Bank of England Act 1998 (making of recommendations within the Bank).
(1)The Bank of England must prepare and publish a statement of policy with respect to its review of rules under section 300I.
(2)The statement must provide information about—
(a)how representations (including by a statutory panel) can be made to the Bank with respect to its review of rules under section 300I, and
(b)the arrangements to ensure that those representations are considered.
(3)In this section “statutory panel” has the meaning given by section 1RB(5).
(4)If a statement published under this section is altered or replaced, the Bank must publish the altered or replaced statement.
(5)A statement prepared under this section must be published by the Bank in the way appearing to the Bank to be best designed to bring it to the attention of the public.
(1)The Treasury may by direction require the Bank of England to carry out a review of specified rules made by the Bank under this Act if—
(a)the rules have been in force for at least 12 months,
(b)the Treasury consider that it is in the public interest that the rules are reviewed, and
(c)it does not appear to the Treasury that—
(i)the Bank is carrying out, or plans to carry out, a review of those rules, or
(ii)if the Bank proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.
(2)Subsection (1) only applies to rules falling within section 300I(1).
(3)The Treasury must consult the Bank before giving a direction under subsection (1).
(4)In exercising the power under this section, the Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the review may have on the exercise by the Bank of any of its other functions.
(5)A direction under subsection (1) may—
(a)specify the period within which a review must be carried out;
(b)determine the scope and conduct of a review;
(c)require the provision of interim reports during the carrying out of a review.
(6)Provision made in a direction under subsection (5)(b) may include a requirement—
(a)for a review to be carried out by a person appointed by the Bank who is independent of the Bank;
(b)for any such appointment to be made only with the approval of the Treasury.
(7)As soon as practicable after giving a direction under subsection (1) the Treasury must—
(a)lay before Parliament a copy of the direction, and
(b)publish the direction in such manner as the Treasury think fit.
(8)Subsection (7) does not apply where the Treasury consider that publication of the direction would be against the public interest.
(9)A direction under subsection (1) may be varied or revoked by the giving of a further direction.
(1)This section applies where the Treasury have given a direction to the Bank of England under section 300K to carry out a review.
(2)The Bank must make a written report to the Treasury as to the opinion of the Bank in relation to the following matters—
(a)whether the rules under review advance—
(i)the Bank’s Financial Stability Objective, and
(ii)the Bank’s secondary innovation objective (see section 30D(2) of the Bank of England Act 1998);
(b)whether and to what extent the rules are functioning effectively and achieving their intended purpose;
(c)whether any amendments need to be made to the rules and, if so, what those amendments should be;
(d)whether any rules should be revoked (with or without replacement);
(e)whether any other action should be taken and, if so, what that action should be.
(3)As soon as practicable after receiving the report the Treasury must—
(a)lay before Parliament a copy of the report, and
(b)publish the report in such manner as the Treasury think fit.
(4)When complying with subsection (3) the Treasury may withhold material from the report if the Treasury consider that publication of the material would be against the public interest.
(1)The Treasury may by regulations require the Bank of England to exercise a power under this Act to make rules in relation to a specified activity or a specified description of person.
(2)Regulations under this section may—
(a)specify matters that the rules must cover;
(b)specify a period within which the rules must be made.
(3)But except so far as permitted by subsection (2), regulations under this section may not require rules to be made—
(a)in a specified form or with specified content, or
(b)to achieve or advance a specified outcome.
(4)If no period is specified under subsection (2)(b) the rules must be made as soon as reasonably practicable after the coming into force of the regulations.”
(3)In section 429 (Parliamentary control of statutory instruments), in subsection (2), in the list of sections beginning with “90B” insert at the appropriate place “300M,”.