Search Legislation

The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021

 Help about what version

What Version

  • Latest available (Revised)
  • Original (As made)
 Help about opening options

Opening Options

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes amendments to:

  • the Bank of England Act 1998 (Macro-prudential Measures) Order 2013 (S.I. 2013/644, the “2013 Order”),

  • the Bank of England Act 1998 (Macro-prudential Measures) Order 2015 (S.I. 2015/909, the “2015 Order”),

  • the Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015 (S.I. 2015/905, the “2015 No.2 Order”), and

  • the Bank of England Act 1998 (Macro-prudential Measures) Order 2016 (S.I. 2016/1240, the “2016 Order”),

together the “Orders”.

Article 2 makes amendments in relation to macro-prudential measures already prescribed by the 2013 Order. Article 2(4) to (7) allow the Financial Policy Committee (“FPC”) to direct the Prudential Regulation Authority (“PRA”) to apply the measures prescribed in the 2013 Order to the holding companies of UK banks and of UK investment firms which are PRA-authorised persons. The measures prescribed in the 2013 Order may be applied to holding companies on a consolidated basis (i.e. in respect of the whole group of companies) or on a sub-consolidated basis (i.e. in respect of a sub-group of companies).

Article 3 makes amendments to the 2015 Order.

Article 4 makes amendments in relation to macro-prudential measures already prescribed by the 2015 No.2 Order. Article 4(2) amends the definition of “consolidated basis.” Article 4(2) and (3) update the definition of “total exposure measure” for the purposes of a direction issued by the FPC so that it is defined by reference to PRA rules. Article 4(4) to (6) allow the FPC to direct the PRA to apply the measures prescribed in the 2015 No.2 Order to the holding companies of UK banks and of UK investment firms. The measures prescribed in the 2015 No.2 Order can be applied to holding companies on a consolidated basis or on a sub-consolidated basis. Article 4(7) allows the FPC to specify how the total exposure measure is to be determined for the purposes of a measure specified in article 4(1) of the 2015 No.2 Order.

Articles 2(2)(a), 3(2) and (3), 4 and 5 make amendments to the effect that existing procedural requirements in the Orders also apply when implementing macro-prudential measures pursuant to rules made under section 192XA of the Financial Services and Markets Act 2000 (c. 8).

A full impact assessment has not been produced for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources