New Financial Policy Committee holds first quarterly meeting
The Bank of England’s new Financial Policy Committee (FPC) is set to hold its first quarterly meeting today.
The FPC, which was first unveiled by Chancellor George Osborne a year ago, has been established to regulate financial services and markets.
The idea behind the FPC follows the Government’s criticism of the Financial Services Authority (FSA) for not doing enough to prevent or limit the crisis in the financial markets.
The FPC will publish its first report on 24 June and its role is to take action if it concludes that financial institutions are taking too much risk.
However, its role will be carried out in a way which should not have an adverse effect on the financial sector contributing to economic growth.
The FPC comprises four external members, which are former US Federal Reserve vice chairman, Donald Kohn, ex-Goldman Sachs and Deutsche Bank banker Michael Cohrs, former Bank monetary policymaker Sir Richard Lambert and ex-Bank executive Alastair Clark.
The Committee also comprises Mervyn King, the Bank of England Governor, Lord Turner and Hector Sants, chairman and chief executive of the Financial Services Authority respectively.