BoE responds on requirements on FMIs consultation

BoE has provided feedback following responses received during its consultation on its proposed approach to statutory notice decisions for use of its requirements powers.

BoE has been given new powers under FSMA 2023 to make rules in respect of CCPs and CSDs in pursuit of its statutory objectives. The Act also gives BoE the power to issue requirements to recognised UK CSDs, recognised UK CCPs and systemic third-country CCPs. These new powers are accompanied by stronger requirements around accountability and transparency of decision-making.

Respondents to the consultation were broadly supportive and agreed the information provided by BoE would help mitigate the risk of undue burden on FMI entities by making the process more predictable. Both responses requested additional clarification, including around the scope of powers and the criteria used by BoE when exercising the requirements powers.

Harry Wells