Part 1: The Bank of England Section 13: Prudential Regulation Committee
This section inserts new sections 30A, 30B and 30C into the 1998 Act.
	New section 30A creates the Prudential Regulation Committee, sets out its membership and makes it responsible for the Bank's prudential regulation functions: that is, the Bank's functions as PRA, and the functions conferred on the PRC by the 1998 Act.
	New section 30B requires the Treasury to make recommendations to the PRC (at least once every Parliament) about the matters of Government economic policy which it wants the PRC to take into account. These recommendations will not relate to individual firms or cases, and any recommendation made will be published, and laid before Parliament.
	New section 30C requires the Bank to make arrangements to comply with provisions in the specified European Union directives, which require that where a single institution is responsible both for supervising financial institutions and for resolving financial institutions when they fail, the supervision functions of the institution are operationally independent from its resolution functions. If it appears to the Treasury that any action the Bank proposes to take would be incompatible with the UK's obligations under those directives, the Treasury may direct the Bank not to take that action, or to take any action that is needed to ensure compliance with those obligations.
	Subsection (3) of this section inserts a new Schedule 6A (found in Schedule 1 to the Act) into the 1998 Act. The Schedule makes provision about the PRC.
	Paragraphs 2 to 9 of Schedule 6A set out the rules to be followed by the Chancellor of the Exchequer in appointing any member of the PRC (including terms of office, factors intended to ensure their independence and provisions on disqualification), and the terms on which they may be removed.
	Paragraphs 10 to 16 of Schedule 6A set out what procedure must be followed by the Committee in meetings, how the Committee is to deal with potential conflicts of interest and the procedure for taking decisions in writing. Subject to these provisions, the Committee may determine its own procedure.
	Paragraph 17 of Schedule 6A allows the Committee to delegate some of its functions and states to whom they may be delegated. It requires certain functions to be delegated to the chief executive for prudential regulation (while making it clear that the chief executive is not prevented from delegating those functions to another person), and sets out which of the Committee's functions may not be delegated to anyone else.
	Paragraph 18 requires a budget for the Bank’s PRA functions to be adopted by the PRC.
	Paragraph 19 requires the PRC to make an annual report to the Chancellor of the Exchequer on the resources the Bank is giving to its functions as PRA and whether those functions are being carried out within the Bank independently of its other functions.