Hm Treasury
Detail of outcome
In January 2022, HM Treasury published the consultation document, Future Regulatory Framework Review: Central Counterparties and Central Securities Depositories. The consultation proposed giving the Bank of England (the Bank) a general rule-making power over two types of financial services firm, central counterparties (CCPs) and central securities depositories (CSDs). It also proposed the introduction of an updated set of statutory objectives and principles for the Bank to follow when regulating these firms, as well as strengthening the mechanisms which govern the Banks accountability to Parliament, its relationship with HM Treasury and its engagement with stakeholders.
The government received 12 responses to the consultation. This document provides a breakdown of the key themes raised by respondents in response to the questions posed. The government is legislating for these reforms through the Financial Services and Markets (FSM) Bill and further detail is available in the accompanying Bill documents.
Original consultation
Consultation description
The Future Regulatory Framework (FRF) Review was established to consider how the financial services regulatory framework should adapt to be fit for the future, and in particular to reflect the UKs new position outside of the EU.
On 9 November 2021 the government published a consultation in which it made a series of proposals to deliver the intended outcomes of the Review, building on the strengths of the UKs existing framework. The consultation specified that the government would set out further detail on the approach for the Bank of Englands regulation of central counterparties (CCPs) and central securities depositories (CSDs) under the FRF Review in due course. This subsequent consultation delivers on this commitment and sets out the governments proposals in this area.
