Member

Adding a specific objective for the Bank of England to ensure the costs to the Financial Services Compensation Scheme are minimised could prevent it taking the most appropriate action to advance its broader resolution objectives. Those objectives include protecting financial stability, certain depositors and public funds. It is right these aims are prioritised at a time of significant risk, and this is part of the reason why the Government have not proposed changes to the broader resolution framework. Of course, as a public authority, the Bank of England would be under an obligation to ensure that any drawdown from the Financial Services Compensation Scheme ought to be sensible and proportionate and in keeping with public law considerations for it to act in a reasonable and proportionate way.