Commentary on provisions of Act Section 2: Reporting
This section inserts a new section 214F, entitled "Recapitalisation payment: report", into Part 15 of FSMA 2000 after section 214E (recapitalisation payments). This new section sets out that:
the Bank of England must report to the Chancellor of the Exchequer where the Bank of England has required the FSCS to make a recapitalisation payment (subsections (1) and (2) of new section 214F)
the report must cover the exercise of the power to require a recapitalisation payment to be made and the stabilisation power and stabilisation option to which the payment relates (subsection (2) of new section 214F). It must also comply with any requirements that the Treasury may specify as to content (subsection (3) of new section 214F).
The final report must be provided at a time specified, or within a period specified, by the Treasury (subsection (3) of new section 214F).
If the final report is not provided within 3 months of the recapitalisation payment, an interim report must be provided within the first 3 months (subsection (4) of new 214F). This interim report must also comply with any requirements that the Treasury may specify as to content (subsection (5) of new section 214F).
The Chancellor of the Exchequer must lay each report, and any interim report, in Parliament (subsection (6) of new section 214F). Prior to laying the report, the Chancellor of the Exchequer may omit any information which the Chancellor of the Exchequer considers it would not be in the public interest to publish (subsection (7) if new section 214F).