The Bank of England (Amendment) (EU Exit) Regulations 2018

Document Number:2018 No. 1297

Statutory Instruments

Exiting The European Union

Banks And Banking

Sift requirements satisfied

21 st November 2018


4 th December 2018

Laid before Parliament

5 th December 2018

Coming into force in accordance with regulation 1

The requirements of paragraph 3(2) of Schedule 7 to the European Union (Withdrawal) Act 2018(1) (relating to the appropriate Parliamentary procedure for these Regulations) have been satisfied.

The Treasury make the following Regulations in exercise of the powers conferred by section 8(1) of that Act.

PART 1 Introduction

Citation and commencement

  1. —(1) These Regulations may be cited as the Bank of England (Amendment) (EU Exit) Regulations 2018.

    (2) They come into force on exit day.

    PART 2 Amendments of Primary Legislation

    Amendments of the Bank of England Act 1998

  2. The Bank of England Act 1998(2) is amended in accordance with regulations 3 to 7.

    Part 1: constitution, regulation and financial arrangements

  3. Omit section 2 AA (macro-prudential measures: Article 458 of the capital requirements regulation)(3).

    Part 1 A: financial stability

  4. —(1) In section 9 H (directions to FCA or PRA requiring macro-prudential measures)(4)—

    (a) in subsection (2)(a)—

    (i) at the end of sub-paragraph (i) , insert “or”;

    (ii) at the end of sub-paragraph (ii) , omit “or”;

    (iii) omit sub-paragraph (iii);

    (b) omit subsection (11).

    (2) In section 9 I (compliance with directions under section 9 H)(5)—

    (a) omit subsection (1 A);

    (b) omit subsection (4 A).

    (3) In section 9 Q (recommendations to FCA and PRA)(6) , omit subsections (4 A) , (4 B) and (4 C).

    (4) In section 9 U (publication of record of meetings)(7)—

    (a) in subsection (3) , omit paragraph (c);

    (b) in subsection (8) , omit paragraphs (f) and (g).

    Part 3 A: prudential regulation

  5. In section 30 C (operational independence)(8)—

    (a) for subsection (1) , substitute—

    “(1) The Bank must make arrangements to ensure that the discharge of its resolution functions (as defined by section 7 D(10)) is operationally independent of the discharge of its functions as the PRA.”(9);

    (b) omit subsections (5) to (7).

    Part 4: miscellaneous and general

  6. In section 41 (general interpretation)(10)—

    (a) renumber the existing provision as subsection (1);

    (b) after subsection (1) , as so renumbered, insert—

    “(2) References in this Act to an EU regulation are to that regulation as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018.”.

    Schedule 7

  7. In paragraph 5 of Schedule 7 (restriction on disclosure of information: other permitted disclosures)(11)—

    (a) at the end of paragraph (a) , insert “or”;

    (b) at the end of paragraph (b) , omit “or”,

    (c) omit paragraph (c).

    Financial Services Act 2012.

  8. —(1) The Financial Services Act 2012(12) is amended as follows.

    (2) In section 57 B (duty of Bank to inform Treasury about resolution plans)(13)—

    (a) for subsection (2)(b) , substitute—

    “(b) the Bank’s assessment of the risk that the failing of the institution or entity would pose to the stability of the financial system in the United Kingdom,”;

    (b) in subsection (7) , omit the definition of “systemic risk”.

    (3) In section 66 (memorandum of understanding: international organisations)—

    (a) in subsection (1) , omit “the European Supervisory Authorities, EU institutions and other”;

    (b) omit subsections (2) and (6);

    (c) in subsection (7) , omit “the European Supervisory Authorities, EU institutions and other”.

    (4) In section 82(3)(a) (publication of reports of inquiries and...

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