The Financial Policy Committee (FPC) was created by the Financial Services Act and came into existence on 1 April 2013 as a key element of the government’s reforms to strengthen the financial regulatory structure in the UK.
The FPC is tasked with monitoring the stability of the financial system as a whole, with a view to ensuring that emerging risks and vulnerabilities are identified and effectively addressed. As part of its ongoing work the FPC will publish a Financial Stability Report (FSR) twice a year.
The FPC’s first full FSR was published on 26 June 2013. It contained the committee’s assessment of the outlook for the stability and resilience of the financial sector at the time of preparation of the report, and the policy actions the committee advises to reduce and mitigate risks to stability.
After the publication of each Financial Stability Report the Chancellor and the Governor of the Bank of England are required, by the Bank of England Act 1998 (as amended by the Financial Services Act 2012), to meet to discuss the report and other matters related to financial stability.
The Treasury is required to publish a record of the meeting within 6 weeks of the meeting taking place, which on this occasion took place on 22 July 2013.