(1) The Bank of England Act 1998 is amended as follows.

(2) For section 3 substitute  -

3A Oversight Committee

(1) There is to be a sub -committee of the court of directors of the Bank ("the Oversight Committee") consisting of the non-executive directors of the Bank.

(2) The functions of the Oversight Committee are -

(a) keeping under review the Bank's performance in relation to -

(i) the Bank's objectives (that is, the objectives specified in relation to it in this Act and the other objectives for the time being determined by the court of directors of the Bank),

(ii) the duty of the Financial Policy Committee under section 9C, and

(iii) the Bank's strategy as for the time being determined by the court of directors of the Bank (including its financial stability strategy);

(b) monitoring the extent to which the objectives set by the court of directors of the Bank in relation to the Bank's financial management have been met;

(c) keeping under review the internal financial controls of the Bank with a view to securing the proper conduct of its financial affairs;