Section 110: payment to Treasury of penalties received by Bank of England
625.Section 110 requires the Bank, in respect of each of its financial years, to pay to the Treasury its penalty receipts after deducting and retaining its enforcement costs. Subsection (2) defines “penalty receipts” for this purpose as any amounts received by the Bank by way of penalties imposed under FSMA or section 198 of the Banking Act 2009. Subsection (3) defines “enforcement costs” for these purposes as the expenses incurred by the Bank in connection with the exercise of consideration of the exercise of its enforcement powers (as defined by subsection (4)) in particular cases or the recovery of penalties. The effect of this provision is that the Bank may retain from penalty receipts funds to cover its enforcement case costs. The general costs of the Bank’s enforcement capability which are not attributable to case work (e.g. the cost of senior management or enforcement policy work) would not be treated as an “enforcement cost”. Subsection (6) provides that the Treasury may give a direction to the Bank as to how it is to comply with its duty under subsection (1). Subsection (9) provides that the Treasury must pay into the Consolidated Fund any sums received under this paragraph. The Bank is not required to maintain a penalty scheme of the kind provided for by paragraph 16 of Schedule 1 to FSMA so no specific provision is made for the distribution of sums retained by the Bank under this section.