Commentary on Sections Regulation Section 191: Directions
426.This section gives the Bank of England power to give directions to the operator of a recognised inter-bank payment system (see subsection (1)). This may include requiring or prohibiting the taking of certain actions in relation to the system or setting standards to be met in the operation of the system (see subsection (2)). Subsection (3) specifies that the Bank of England must notify the Treasury before making a direction. Subsection (4) provides that the Treasury may confer, by order, statutory immunity from liability in damages in respect of action or inaction taken by a person in accordance with the direction of the Bank. Immunity from liability does not extend to action or inaction taken in bad faith or in contravention of section 6(1) of the Human Rights Act 1998. Subsection (6) sets out the procedure for making an order under subsection (4).