On 21 December 2023, the Bank of England (BoE) issued a consultation paper on its approach to statutory notice decisions for use of its requirements powers.

The BoE has been given a number of new powers, matched by new obligations and accountabilities, in its role as the UK’s regulator for central counterparties (CCPs) and central securities depositories (CSDs) by the Financial Services and Markets Act 2000 (the Act) as amended by the Financial Services and Markets Act 2023. The Act gives the BoE the power to issue requirements to recognised UK CSDs, recognised UK CCPs and systemic third-country CCPs. This power will allow the BoE to require such entities to take, or refrain from taking, a specified action.

In order to be as transparent as possible in these processes, the BoE is consulting on a statement of policy (SoP) with respect to the allocation of decision-making regarding statutory notices, its approach to supervisory statutory notice decision-making, and its approach to the publication of supervisory statutory notice decisions. The draft SoP clarifies the BoE’s proposed policy on these issues. The consultation paper does not consult on the likely conditions where the BoE may choose to use its requirements powers.

The deadline for comments on the consultation paper is 21 March 2024.