Consultation on the codes of practice for wholesale cash distribution market oversight

The Bank of England has launched a consultation on the codes of practice (CoPs) for wholesale cash distribution market oversight. Following the consultation on the supervisory approach to wholesale cash distribution published in December 2022 (see eventid=19077), the Bank is now consulting on the detailed CoPs for the market oversight regime.
The proposed new scheme would consist of three parts:
1. CoPs for market oversight of wholesale cash distribution
– Information gathering: recognised firms should report a range of information and data, such as „cash centres, service level agreements, business plans and business continuity plans“, on a regular basis,
– Third-party Arrangements: it will be required to distinguish between the materiality of arrangements; for those classified as material, the firm will be required to perform due diligence, and
– Cash Centre Closure and Market Exit: in case of a cash centre closure or market exit, the firm will be required to cooperate with the BoE in the early stages to ensure that the macro impact on wholesale cash infrastructure is manageable.
2. Data Catalogue
The BoE has posted a separate, detailed data catalogue, which includes a thorough description of the relevant fields and documents.
3. Guidance for the CoPs for market oversight
BoE has posted a separate, detailed guidance for market oversight, which includes, among other, all relevant definitions, qualitative and quantitative methodologies.
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The consultation will run through 31 January 2024 and seeks comments on all parts of the newly proposed wholesale cash distributions regime.