There has been published on the website the Bank of England and Financial Services Bill 2015-16 (the Bill).

The Bill is intended to amend governance and accountability arrangements at the Bank of England (BoE), expand the scope of and make changes to the Senior Managers’ and Certification Regimes and permit the extension of the Government’s Pension Wise service.

Amongst other things, the Bill:

  • ends the status of the PRA as a subsidiary of the BoE, instead creating a new BoE committee to be known as the Prudential Regulation Committee, with responsibility for the BoE’s functions as the Prudential Regulation Authority;
  • extends the Senior Managers’ and Certification regimes to all firms which are authorised to provide financial services under the Financial Services and Markets Act 2000,
  • amends the definition of ʺmisconductʺ applicable to senior managers so that, where there has been a regulatory contravention in an area for which they are responsible, senior managers no longer have to prove that they have taken reasonable steps to prevent that contravention to avoid being found guilty of misconduct. It will be necessary for the regulators to prove that a senior manager has not taken such steps before they can bring disciplinary proceedings against a senior manager on this ground; and
  • extends the remit of the Government’s Pension Wise service to holders of annuities specified by HM Treasury so that it can deliver guidance to pensioners who will be eligible to sell their annuity income stream in 2017.

The Bill went through first reading at the House of Lords on 14 October 2015 and is scheduled for the second reading on 26 October 2015.

View Bank of England and Financial Services Bill [HL] 2015-16, 15 October 2015