# Bank of England Act 1998, Section 9S: Duty to prepare explanation

Extent: E+W+S+N.I.

(1) In connection with the exercise of any of the specified powers, the Financial Policy Committee must prepare an explanation of—
(a) the reasons for the Committee's decision to exercise the power, in the way in which it is being exercised, and
(b) the Committee's reasons for believing that the exercise of the power, in the way in which it is being exercised, is compatible with the duties of the Committee under the following provisions—
(i) section 9C(1) (as read with section 9C(4)), and
(ii) section 9F.
(2) The specified powers are—
(a) the power to give a direction under section 9H;
(b) the power to make recommendations under section 9O, so far as relating to the exercise of the Bank's functions in relation to payment systems, settlement systems , clearing houses and central securities depositories ;
(c) the power to make recommendations under section 9P, so far as relating to the exercise by the Treasury of their power to make orders under any of the provisions mentioned in subsection (2) of that section;
(d) the power to make recommendations under section 9Q.
(3) The explanation required by subsection (1) in relation to the duty in section 9F(3)(a) must include an estimate of the costs and an estimate of the benefits that would arise from compliance with the direction or recommendation in question, unless in the opinion of the Committee it is not reasonably practicable to include such an estimate.

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Source: https://www.legislation.gov.uk/ukpga/1998/11/section/9S (the official version)
Page: https://openlegislation.uk/bank-of-england-act-1998/section-9S
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.