3 December 2003
Report of the task force on major operational disruption in the financial system
The Treasury consulted on possible legislative responses to major operational disruption to the UK financial system, publishing a Green Paper (“The financial system and major operational disruption”) in February 2003. Many respondents called for more detailed consideration of the case for legislating. The Treasury therefore asked the Bank’s Deputy Governor for Financial Stability, Sir Andrew Large, to chair a Task Force comprising experts in financial law from the private sector and officials from the Bank, Treasury and FSA to examine whether further legislation was needed. Its final report was published on 3 December 2003 - see below.
The Task Force concluded that, on balance, no new statutory powers were needed because the range of tools already available would generally allow the risks posed by major operational disruption to be managed appropriately. There were also significant difficulties in devising new powers that would be simple to apply and clear in their impact. This conclusion is predicated on the considerable work already ongoing to address financial sector business continuity issues. The Task Force made eight recommendations aimed at reinforcing and developing that work. Its conclusions and recommendations have been accepted by the Government.
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