Chapter 3: Accountability of regulators Bank of England regulatory powers Section 50: Application of FSMA 2000 to FMI functions
This section makes several amendments to Part 18 and Schedule 17A to FSMA 2000 to ensure that they function in a way which is appropriate for the Bank’s new regulatory framework and its new general rule-making power. For example, subsection (8) applies section 166A of FSMA 2000 to the Bank, which allows for the appointment of a skilled person to investigate a potential breach of a requirement to collect and keep up to date information.
	The section also amends Schedule 17A to make provision in relation to the Bank which aligns with measures being introduced for the PRA and the FCA as follows:
It applies new section 1RB, which will be inserted into FSMA 2000 by section 36 of this Act, to the Bank. This will require the Bank to include in its public consultations information about the statutory panels of the FCA, the PRA and Payment Systems Regulator that it has engaged with in relation to the subject matter of the consultation.
It applies new section 138BA, which will be inserted into FSMA 2000 by section 34 of the Act, to the Bank. This will provide for the Bank to be able to disapply or modify rules in individual cases.
It applies new section 138EA, which will be inserted into FSMA 2000 by section 31 of this Act, to the Bank. This confers power on HM Treasury to set out in regulations matters which the Bank must consider when making rules.
It applies new section 138JA(2), (3), (4), (9) and (10) and section 138JB, which will be inserted into FSMA 2000 by section 44 and as a result of which the Bank will be required to consult the PRA Cost-Benefit Advisory Panel (which is established by section 138JA), and to publish a statement of policy for its cost-benefit analyses.
It applies section 141A of FSMA 2000, and new section 141B, which will be inserted into FSMA 2000 by section 65, to the Bank. This will enable HM Treasury to make amendments to legislation which are consequential on Bank rules and references to Bank rules.
It applies new sections 409A and 409B, which will be inserted into FSMA 2000 by sections 32 and 33, subject to modifications. As a result of which the Bank will be subject to obligations to consult or notify HM Treasury (as applicable) in relation to the effect of certain actions on notified deference decisions and their compatibility with international trade obligations.
It introduces a new requirement to paragraph 33 (a) of the Schedule for the Bank to set out in its Annual Report the efforts it has made to engage with interested stakeholders other than CCPs and CSDs, and the results of that engagement.
It applies new paragraph 21A of Schedule 1ZB to FSMA 2000 (which will be inserted into that Act by section 39), and which will provide HM Treasury with a power to direct the Bank to publish a report containing information about matters specified by HM Treasury.
It applies new paragraphs 36 and 37 of Schedule 1ZB to FSMA 2000 (which will be inserted into that Act by section 39), and which will require the Bank to notify the Treasury Select Committee, a relevant Lords committee, and a relevant joint committee when issuing a consultation, publishing draft rules or other proposals, and to provide a written response when a Parliamentary committee makes representations in response to a consultation. The qualification in new paragraph 36(5) that the Bank does not need to supply any information that they consider is against the public interest operates only as a qualification of the new statutory duty itself. It does not purport to speak for any wider purpose (and therefore does not purport to limit the inherent jurisdiction of Parliament to require the production of papers or to summon witnesses).