FSB has completed the peer review of the UK, which follows up on the UK Financial Sector Assessment Program (FSAP) that the International Monetary Fund (IMF) undertook in 2011. The peer review examined three topics of relevance to financial stability. It concluded the UK had progressed well and made significant progress towards its goals. For the future, it recommended:
- Macro-prudential policy: FSB recommends that the relationship between the Financial Policy Committee (FPC) and FCA should be developed, and FCA capacity to undertake systemic risk analysis should be enhanced. The extent of permissible detail in FPC recommendations to PRA and FCA must also be clarified, to avoid tension between agencies and confusion in the marketplace.
- Micro-prudential policy: PRA should consider options to communicate to firms their rating under the supervisory proactive intervention framework (PIF) without triggering disclosure obligations for listed firms. PRA's supervisory ratings and strategies should be signed off by risk specialists.
- Central counterparties (CCPs): BoE should promote the integration and flow of information between the micro- and macro-prudential perspectives on CCPs, given that different UK agencies can apply policy tools that have systemic effects.
(Source: Peer Review of the United Kingdom)