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:
- 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.
- 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.
- 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.
- Making changes to the Bank of England’s governance and the role of the National Audit Office in scrutinising it.