The Financial Policy Committee (FPC) is an official committee of the Bank of England, modelled on the already well established Monetary Policy Committee. It was announced in 2010 as a new body responsible for monitoring the economy of the United Kingdom.[1] Focusing on the macro-economic and financial issues that may threaten long term growth prospects,[2] it was expected to be officially set out in legislation during 2012.[1] Although early plans were for the interim (pre-legislation) FPC to meet in late 2010, the committee's first meeting was held in June 2011.[3] As of March 2012, the FPC is expected to take over operational responsibility for managing the financial sector from the Financial Services Authority with legislation planned for 2013.[4]

Once operational, the committee, headed by the Governor of the Bank (currently Andrew Bailey), will address any risks it identifies by passing on its concerns to a new Prudential Regulation Authority (PRA), which will be obliged to act.[2] Plans for the committee were set out in George Osborne's first Mansion House speech in June 2010, along with the creation of the PRA and a Consumer Protection and Markets Authority (CPMA, later renamed the Financial Conduct Authority, or FCA).[1] Minutes of FPC meetings are made available,[4] a move intended both "to increase transparency and to help transmit messages to the City".[2] After legislation is passed, the FPC will be fully accountable to Parliament.[1]

See also

References

  1. ^ a b c d Elliott, Larry (17 June 2010). "Bank of England's City watchdog to meet in autumn". The Guardian. Retrieved 7 October 2010.
  2. ^ a b c "Q&A: Osborne's financial regulation reforms". BBC News. 17 June 2010. Retrieved 7 October 2010.
  3. ^ Treanor, Jill (12 June 2011). "Financial policy committee faces difficult birth". The Observer. Retrieved 28 March 2012.
  4. ^ a b Inman, Phillip (28 March 2012). "Bank of England split on tackling next house price boom". The Guardian. Retrieved 28 March 2012.

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