Peer Review of the United Kingdom
The main purpose of this peer review is to examine three topics that are relevant for financial stability and important for the United Kingdom (UK): macro-prudential policy framework; micro-prudential supervisory approach; and supervision and oversight of central counterparties (CCPs). All three topics were included in the key FSAP recommendations and are topical for the broader FSB membership. The peer review focuses on the steps taken to date by the UK authorities to implement reforms in these areas, including by following up on relevant FSAP recommendations. Good progress has been made in addressing the FSAP recommendations across all three topics, although many of these reforms are still ongoing. The challenge for the authorities will be to continue their work to roll out and integrate the reforms, address execution risks, and take the necessary steps to ensure the effectiveness of those reforms over the long term.Promoting strong relationships between staff at all levels in the newly-created authorities and within the BoE is an important prerequisite for the success of the reforms.