On 12 November 2024, the Bank of England (BoE) published a policy statement on its approach to enforcement and proposed changes to statements of policy and procedure following the Financial Services and Markets Act 2023 (FSMA 2023). The policy statement provides feedback on responses to the BoE’s consultation paper on the topic, published in March 2024, and sets out its final policy.
The BoE’s final policy is set out in the BoE’s updated approach to enforcement: statements of policy and procedure (Enforcement SoPP). The policy statement confirms that the Enforcement SoPP has been amended to reflect updates to the BoE’s:
- Enforcement policy and procedure in connection with the Securitisation Regulations 2024.
- Enforcement policy and procedure in respect of digital settlement assets.
- Enforcement policy in connection with the wholesale distribution of cash.
- Enforcement policy and procedure with respect to critical third parties.
The updated Enforcement SoPP takes effect as of the date of publication. The BoE notes that it will have regard to the policies on exercising its enforcement powers in force at the time of any misconduct, contravention or failure (collectively referred to as a breach), meaning that when conduct which would have amounted to a breach under the updated Enforcement SoPP began before 12 November 2024 and continues after that date, the new regimes apply only to the conduct from 12 November 2024 onwards and not before.