Notes on: "Legislation will reform the framework for financial services regulation to learn from the financial crisis."
The purpose of the Bill
- The Bill would give the Bank of England control of macro-prudential regulation and oversight of micro-prudential regulation.
The main benefits of the Bill
- To ensure that aggregate risk and imbalances in the economy are properly monitored and managed, thereby helping maintain financial stability.
The main elements of the Bill
- Reforming the regulatory framework so that the Bank of England is responsible for macro-prudential regulation, and has oversight of micro-prudential regulation.
- HM Government Coalition Programme, 20 May 2010
- Coalition Agreement, 11 May 2010
- Change for the Better, Conservative Paper, April 2010
- Plan for Sound Banking, Conservative Paper, July 2009
Existing legislation in this area is
- Financial Services Act 2010
- Banking Act 2009
- Financial Services and Markets Act 2000
The Bill applies to the UK. All provisions relate to financial services and are therefore reserved.