OREANDA-NEWS. The bill has been introduced into the House of Lords and will ensure the Bank of England is well equipped to fulfil its vital role of overseeing monetary policy and financial stability, a key part in the government’s long term plan to build a resilient economy.

The reforms in the bill will strengthen the governance and accountability of the Bank of England, update resolution planning and crisis management arrangements between the Bank and Treasury, and extend the principle of personal responsibility to all sectors of the financial services industry.

As part of its commitment to deliver a new settlement for financial services, the government has made far reaching reforms to financial regulation. The Bank of England has been put at the centre of a new regulatory system and been given significant new powers and responsibilities. The government is implementing significant new measures, including ring-fencing, to end too big to fail, and has established a tough new conduct regulator, the Financial Conduct Authority (FCA).

The Bank of England and Financial Services Bill builds on these reforms with a series of evolutionary changes.

The measures to strengthen the Bank of England’s governance and the framework for managing resolution of firms in difficulty were set out in July this year. Following a public consultation, the government is today confirming that these changes will be made in the bill.

The Chancellor is also announcing the extension of the Senior Managers & Certification regime (SM&CR) across the entire financial services industry, replacing the discredited Approved Persons Regime.

The changes being brought forward represent the furthest reaching reforms the government has made on the personal responsibility of senior managers in the financial services industry, ensuring that they face the same ‘duty of responsibility’ in whatever type of firm they work at.

The government is also revolutionising the pension system to allow people to access their pension pots flexibly without being hit with punitive tax rates. Following decisions to extend pensions freedoms to those who already hold an annuity in 2017, the ill will extend the scope of the Pension Wise guidance service, so that pensioners can access a free, impartial service to discuss their new options.

Chancellor of the Exchequer, George Osborne said:

Ensuring the Bank of England is well positioned to fulfil its vital role of overseeing monetary policy and financial stability is a key part of the government’s long term plan to build a resilient economy, delivering the economic security of a country that lives within its means.

Building on the substantial reforms we’ve made to our financial and regulatory architecture since 2010, the measures in the Bank of England and Financial Services Bill make sure the Bank is on the best possible footing to oversee its expanded remit, and takes further steps to protect taxpayers from firm failure.

These important new reforms will also mean that the Bank of England continues to be an international example of best practice, with strengthened and transparent governance and accountability arrangements that are central in supporting the Bank’s critical role in supporting economic stability across our country.