On 19 April 2016, the House of Commons held the report stage and third reading of the Bank of England and Financial Services Bill 2015-16.  The Bill amends the governance and accountability of the Bank of England and includes changes to the PRA.

The key amendments made at the report stage include:

  • The Bill will amend the Financial Services and Markets Act 2000 (FSMA) to provide that the term of office of a person appointed as Chief Executive of the FCA cannot begin before that person has appeared before the House of Commons Treasury Committee in connection with that appointment, or (if earlier) three months from the date of his or her appointment.
  • The Bill was amended to require that any UK measures implementing the Fourth Money Laundering Directive (EU) 2015/849 (MLD4) pay regard to MLD4’s provisions on proportionality.  The Bill will also insert a new Part 20C into FSMA on money laundering to require the FCA to issue guidance to regulated entities on the definition of politically exposed person (PEP), focusing on proportionality issues.  It also provides for the FCA to adjudicate on complaints from PEPs that believe that they have been treated unfairly by a regulated entity.

The Bill has now completed all stages in the House of Commons and will pass back to the House of Lords for consideration of the amendments made during its Commons stages.