New laws give more power to BoE policy committees

The act will end the subsidiary status of the Prudential Regulation Authority and allow the National Audit Office to undertake value for money reviews of the Bank for the first time.

The laws also aim to better protect tax payers from firm failure by updating resolution planning and crisis management arrangements between the Bank and Treasury, and ensuring that senior managers can be held to account for failings that occur on their watch through the extension of the Senior Managers and Certification regime to all authorised persons.

The act also officially extends the scope of the Pension Wise service, so that pensioners who, from April 2017, are able to sell their annuity income can access free, impartial guidance.

It also hopes to promote diversity and competition in the banking sector by ensuring that regulators take into account different business models as part of their competition objectives.

Governor of the Bank of England, Mark Carney, said:

"By placing the Bank’s three major policy committees on the same statutory footing, by streamlining the Monetary Policy Committee’s meeting schedule, and by further enhancing the transparency and governance of the Bank’s operations, this legislation will ensure the institution can operate more effectively as One Bank to promote the good of the people of the United Kingdom by maintaining monetary and financial stability."