- See http://services.parliament.uk/bills/2012-13/financial-services.html.
- To date it has operated on an informal basis, supported by the Bank of England's statutory responsibility for financial stability under the Banking Act 2009.
- The tools proposed by the FPC, which will be contained in an Order to be made by the Treasury, are: countercyclical capital buffer; sectoral capital requirements; and leverage ratio.
- See P Tucker, “Stability Comes before the Good Things in Life”, Financial Times 5 April 2012.
- See para A.15 of HM Treasury, “A New Approach to Financial Regulation: Securing Stability and Protecting Consumers”, Cm 8268 (January 2012).
- The Governor, two deputy governors and the executive director responsible for markets will sit on both committees. The Treasury comments as follows at para A.16 of Cm 8268 (supra n 5): “Shared membership should ensure consistent policy and there is no need to legislate for specific [conflict resolution] mechanisms.”
- See clause 3 of the Bill, amending the Bank of England Act 1998.
- The status of the FPC is under review following the recommendation of the Joint Parliamentary Committee on the Draft Financial Services Bill that it should be a committee of the Bank: see para A.17 of Cm 8268 (supra n 5).
- See clause 3 of the Bill, amending the Bank of England Act 2009 so as to require the Court to set the Bank's financial stability strategy. The FPC's role is to focus on systemic risk within the broader financial stability objective of the Bank.
- See s 244 of the Banking Act 2009.
- There is no mechanism in place for the FPC to access public funding on its own initiative since the operation of the Special Resolution Regime is in the hands of the Court of the Bank of England, the FSA and the Treasury.
- This continues a practice that has been place for many years.
Law and Financial Markets Review
Volume 6, 2012 - Issue 4