Moved by
Lord Bridges of Headley
7: Clause 11, page 9, line 28, at end insert—
“(3A) An examination under this section is not to be concerned with the merits of—
(a) policy decisions taken by the Financial Policy Committee, the Monetary Policy Committee or the Prudential Regulation Committee;
(b) policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the supervision of payment systems, settlement systems or clearing houses, so far as the decisions relate to that supervision.
“(3B) Subject to subsection (3C), an examination under this section is not to be concerned with the merits of policy decisions taken by a committee or other body within the Bank for the time being having responsibilities for the exercise of any of the Bank’s resolution functions, so far as the decisions relate to those functions.
(3C) Where the Bank has exercised relevant resolution functions in relation to a financial institution, subsection (3B) does not prevent an examination under this section being concerned with the merits of policy decisions within that subsection which are relevant to the Bank’s exercise of its resolution functions in relation to that institution (whether or not those policy decisions are also relevant to other financial institutions).
(3D) “Relevant resolution functions” are—
(a) any of the stabilisation powers;
(b) any of the Bank’s functions (other than its functions as the Prudential Regulation Authority) under or by virtue of—
(i) Part 2 or 3, or section 233, of the Banking Act 2009,
(ii) Part 6 of the Financial Services (Banking Reform) Act 2013.”
8: Clause 11, page 9, line 32, at end insert—
“( ) For the purposes of this section—
“resolution functions” means the Bank’s functions (other than its functions as the Prudential Regulation Authority) under or by virtue of—
(a) Parts 1 to 3, and section 233, of the Banking Act 2009,
(b) Part 6 of the Financial Services (Banking Reform) Act 2013,
(c) the Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348);
“stabilisation powers” has the same meaning as in the Banking Act 2009 (see section 1(4) of that Act).”
9: Clause 11, page 9, line 36, leave out from beginning to end of line 23 on page 10 and insert—
“7E Memorandum of understanding
(1) The Bank and the Comptroller must prepare and maintain a memorandum of understanding about examinations under section 7D.
(2) The memorandum must in particular include provision—
(a) as to functions of the Bank in respect of which the Comptroller will not usually consider it appropriate to carry out an examination;
(b) identifying the committees or other bodies referred to in section 7D(3A)(b) and (3B);
(c) establishing a procedure for resolving in a timely fashion any dispute between the Bank and the Comptroller as to whether a matter is (under section 7D(3) to (3C)) a matter with which an examination under section 7D is not to be concerned;
(d) for the publication of the views of the Bank and the Comptroller as to whether a matter is such a matter, in cases where a dispute between them cannot be resolved.”