The Bank of England and Financial Services Act 2016 (the Act)1 received Royal Assent on 4 May 2016, and will be implemented by Treasury regulations. Key provisions of the Act include:

  1. Cessation of the PRA’s status as a subsidiary of the Bank of England and, in its place, the establishment of the Prudential Regulation Committee (PRC), a committee of the Bank of England that will exercise PRA’s functions.
  2. Extending the senior managers and certification regime to cover people working in any firm authorised to carry out regulated activities under the Financial Services and Markets Act 2000.
  3. Granting new powers to:
    • HM Treasury to provide financial assistance with the purpose of taking action against illegal money lending.
    • The FCA to raise levies from firms to fund this financial assistance.
  4. Making changes to the Bank of England’s governance and the role of the National Audit Office in scrutinising it.