Financial Services Bill: the Financial Policy Committee’s macro-prudential tools
This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
We are analysing your feedback
Visit this page again soon to download the outcome to this public feedback.
This consultation ran from
Seeking views on establishing the Financial Policy Committee’s (FPC) within the Bank of England as a macro-prudential authority
Ref: ISBN 9780101843423, Cm 8434 PDF, 1.32MB, 66 pages
This file may not be suitable for users of assistive technology. Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email firstname.lastname@example.org. Please tell us what format you need. It will help us if you say what assistive technology you use.
Establishing the Financial Policy Committee’s (FPC) within the Bank of England as a macro-prudential authority is a key element of the Government’s reforms to the UK’s system of financial regulation, which will be enacted by the Financial Services Bill.
In order to address systemic risks to the UK financial system, the FPC will have broad powers of recommendation and a power to issue directions to the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), using macro-prudential tools set out by the Treasury in secondary legislation.
This document seeks comments on the Government’s intention to:
- make the FPC responsible for setting the level of the UK’s counter-cyclical capital buffer
- provide the FPC with a direction-making power to impose sectoral capital requirements
- provide the FPC with a time-varying leverage ratio direction-making tool, but no earlier than 2018 and subject to a review in 2017 to assess progress on international standards
The document contains draft secondary legislation that will provide the FPC with its directive tools, and an Impact Assessment that contains illustrative estimates of the net benefits of the FPC’s macro-prudential tools.
Published: 18 September 2012
From: HM Treasury