BoE consults on approach to enforcement

BoE has published a consultation paper on its approach to enforcement. In particular, it proposes making a number of amendments to existing documents, creating a consolidated set of statements of policy entitled ‘The Bank of England’s approach to enforcement: statements of policy and procedure’, and creating a new separate statement of policy entitled ‘The PRA’s allocation of decision-making and approach to supervisory decisions’.

The proposed amendments seek to:

  • clarify the scope of BoE’s enforcement powers;
  • move sections of the current PRA enforcement approach document relating to the use of statutory tools other than enforcement powers into the proposed PRA decision-making policy;
  • make specific and consequential amendments to policies and procedures relating to the current PRA enforcement approach document to further incentivise cooperation by subjects under investigation;
  • clarify the approach and procedures BoE would adopt in FMI enforcement investigations;
  • set out in the proposed PRA decision-making policy revised policies which ensure operational efficiency and better advance its statutory objectives;
  • expand the EDMC remit to include various enforcement powers available to BoE and/or PRA under FSMA; and
  • clarify the EDMC procedures to reflect how they have operated in practice and clarify EDMC roles and responsibilities in light of its practical experience dealing with cases.

Consultation closes on 4 August 2023.

Laura Wiles