The Bank of England has published a statement of policy setting out its approach to exercising its power to direct a CCP to address impediments to resolvability under the Financial Services and Markets Act 2023. This power applies to U.K.-based CCPs. The BoE also has a new power to direct a parent company of a CCP to establish a separate holding company for specific purposes, if the CCP is a subsidiary of a company incorporated in the U.K.
The policy statement summarizes the feedback received to the BoE's July 2024 consultation on the subject and provides the BoE's responses to the points raised in relation to: (i) the approach to the BoE's use of its power; (ii) the publication of directions; (iii) the approach to the resolvability assessment of CCPs; (iv) engagement with industry and other regulators; (v) the BoE's objectives; and (vi) the approach to CCP resolution publication.
In the policy statement, the BoE confirms that it still intends to publish in due course a document on its general approach to CCP resolution.
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