Financial Policy Committee
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The Financial Policy Committee (FPC) is an official committee of the
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the Kingdom of England, English Government's banker, and still one of the bankers fo ...
, 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 The economy of the United Kingdom is a Developed country, highly developed Social market economy, social market and Market economy, market-orientated economy. It is the List of countries by GDP (nominal), sixth-largest national economy in the wo ...
. Focusing on the macro-economic and financial issues that may threaten long term growth prospects, it was expected to be officially set out in
legislation Legislation is the process or result of enrolling, enacting, or promulgating laws by a legislature A legislature is an deliberative assembly, assembly with the authority to make laws for a Polity, political entity such as a Sovereign st ...
during 2012. 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. As of March 2012, the FPC is expected to take over operational responsibility for managing the financial sector from the
Financial Services Authority The Financial Services Authority (FSA) was a quasi-judicial body accountable for the financial regulation, regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investmen ...
with legislation planned for 2013. 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. Plans for the committee were set out in
George Osborne George Gideon Oliver Osborne (born Gideon Oliver Osborne; 23 May 1971) is a former British politician and newspaper editor who served as Chancellor of the Exchequer from 2010 to 2016 and as First Secretary of State from 2015 to 2016 in the P ...
'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 The Financial Conduct Authority (FCA) is a financial regulation, financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The ...
, or FCA). Minutes of FPC meetings are made available, a move intended both "to increase transparency and to help transmit messages to the City". After legislation is passed, the FPC will be fully accountable to
Parliament In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: Representation (politics), representing the Election#Suffrage, electorate, making laws, and overseeing ...
.


See also

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Financial Services Authority The Financial Services Authority (FSA) was a quasi-judicial body accountable for the financial regulation, regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investmen ...


References

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External links


Explanation of the Financial Policy Committee
on the Bank of England's website Bank of England