UK: Bank of England and Financial Services Bill - first reading in the House of Lords

The Bank of England and Financial Services Bill was introduced in Parliament yesterday by Lord O'Neill of Gatley, receiving its first reading in the House of Lords: see here and here. Second reading is scheduled for 26 October. A copy of the Bill as introduced is available here or here (pdf). The progress of the Bill can be followed here.

The Bill makes changes to the governance of the Bank of England, including the creation of a Prudential Regulation Committee, and also extends the reach of the Senior Managers Regime. The Bill also amends the proposed liability regime for senior managers (by amending sections 66A and 66B of the Financial Services and Markets Act 2000, as inserted by section 32 of the Financial Services (Banking Reform) Act 2013)). Senior managers will no longer have to prove that they had taken reasonable steps to prevent contraventions in order to avoid being found guilty of misconduct.

Further information is available in the explanatory notes that have been published to accompany the Bill: see here or here (pdf). The Bill was the subject of a consultation exercise earlier this year, about which see here (pdf).