prepare for and implement the various elements of the iaf effectively. our proposed approach to implementation seeks to balance the need to maintain momentum by introducing the framework while allowing appropriate time for in - scope firms to ensure its quality implementation. in order to finalise the proposals, we are keen to receive feedback to the consultation paper from a wide range of stakeholders, including those of you in this room today. following the receipt and review of feedback to the consultation paper and the publication of the related feedback statement, we intend to allow for an appropriate transitional period for firms and holding companies to implement the relevant changes introduced by the iaf. this would see : conduct standards to apply from 31 december 2023 ; fitness & probity regime – certification and inclusion of holding companies to apply from 31 december 2023 ; and regulations prescribing responsibilities of different roles and requirements on firms to clearly set out allocation of those responsibilities and decision making to apply to in - scope firms from 1 july 2024. i would encourage firms to use this time to prepare to implement the new framework by understanding their obligations and assessing their current governance structures in order to identify clearly who is responsible for what within the firm. firms will need to clearly define the roles and responsibilities of individuals and ensure clarity over reporting lines and any delegation of tasks. firms should review their current fitness and probity processes to assess any enhancements required to meet the annual certification requirements. firms should also examine their internal culture and values as compared to the iaf principles and identify areas of focus. education and training will also play an important part in the success of this framework. these steps will help firms to assess gaps and identify the key changes needed on a timely basis. the framework also introduces changes to the central bank ’ s enforcement processes. the central bank will issue updated f & p investigations regulations and f & p investigations guidance once the underlying legal provisions have been brought into effect in the coming days. the central bank intends to launch a separate public consultation on the changes to the asp in mid - 2023. this consultation package will include consolidated end - to - end asp guidance which will include investigation, inquiry, settlement and sanctions guidance for consideration by all relevant stakeholders. conclusion i will conclude here. i hope you have found it useful to hear how the new framework fits within our overall approach to regulation, which is based on the principles of proportionality, predictability, and reasonable expectations, and which leverages the way that firms have chosen to structure themselves,

many believe that the mpc sets interest rates, that is only strictly true for short term rates, and even then only the rates applicable in our monetary and liquidity insurance operations. long term interest rates are set by the economy, and must ultimately equilibrate the desire to save and the desire to invest. much of the decline in interest rates over the 30 years prior to the crisis represented large global forces – as evidenced by the tendency of international bond yields to co - move. 4 demographic effects, for example, saw the proportion of the global population in prime working age increase from 50 % to 58 %. 5 those in the workforce tend to save more than those outside it, particularly over a period of increasing life expectancy. the rise of inequality has also had an impact through its tendency to skew income toward those more likely to save. 6 needless to say, the development of these trends over the coming decades will continue to play an important role in the determination of long term interest rates. but it is the further decline in interest rates since the crisis 7 that i am focussed on today, and it suggests a further shift towards a desire to save rather than invest over that period, driven by forces other than those long - running trends. there are ( at least ) three interpretations of this further shift : • the first is that market participants ( ultimately representing the interest of savers and investors ) believe that the cyclical forces which currently warrant very low levels of bank rate will persist for decades to come. put another way, that we are entering a period of secular stagnation or chronic demand deficiency. 8 • the second is that what we are witnessing is typical of a “ balance sheet recession ”. 9 as we know, recessions that are preceded by a large build - up of credit tend to be followed by more severe and prolonged downturns. 10 one reason is that economic actors tend to focus on reducing debt levels to the detriment of projects that would otherwise be expected to have a positive net present value. in such a situation the interest rate required to clear the market for savings and investment can be very low indeed. • the third interpretation is that financial market participants do not have a particularly gloomy central expectation for the path of the economy over the coming decades, rey ( 2013 ). source : united nations http : / / esa. un. org / wpp / excel - data / population. htm. dynan et al ( 2000 ) find