New objectives and regulatory principles Exercise of Bank of England regulatory powers Objectives and principles
The additional regulatory powers over CCPs and CSDs granted to the Bank of England by this Act are set out elsewhere in these Notes. Alongside this expansion of the Bank’s responsibilities and powers, the Act puts in place a framework to ensure that the Bank is set the right overall public policy objectives and is fully accountable and transparent in pursuing them.
	The Bank’s function as regulator and supervisor of CCPs and CSDs is currently subject to its Financial Stability Objective as set out in section 2A of the Bank of England Act 1998, which is as follows:
	2A Financial Stability Objective
	(1) An objective of the Bank shall be to protect and enhance the stability of the financial system of the United Kingdom (the "Financial Stability Objective").
	(2) In pursuing the Financial Stability Objective the Bank shall aim to work with other relevant bodies (including HM Treasury and the Financial Conduct Authority).
	This financial stability objective will remain the sole primary objective for the Bank in its regulation of CCPs and CSDs. The Act specifies that when the Bank acts to advance this objective, it should also have regard to:
The effects generally that its regulation of CCPs and CSDs will or may have on the financial stability of countries or territories (other than the UK) where CCPs and CSDs are established or provide services.
Regulating CCPs and CSDs in a manner that is not determined by whether the users of their services are located in the UK or elsewhere.
	The Act introduces a secondary objective for the Bank so that as it advances its primary objective for financial stability it must, so far as is reasonably possible, facilitate innovation in the clearing and settlement services provided by the CCPs and CSDs it regulates with a view to improving the quality, efficiency and economy of the services they provide.
	The Act also introduces regulatory principles for the Bank, similar to those set out in FSMA 2000 for the PRA and the FCA. This includes a sustainable growth principle incorporating the government’s commitment to achieving net zero emissions by 2050 and to meeting the environmental targets provided for in the Environment Act 2021. The Act introduces a new regulatory principle for the Bank to have regard to the desirability of facilitating fair and reasonable access to services provided by CCPs and CSDs.