In his final speech as deputy governor of the Bank of England Paul Tucker revealed that the resolution regime, which will allow one of the world's largest banks to collapse without being rescued, is now in place.
The FTSE 100 index was in the red just after midday, dragged down by mining stocks which sold-off as oil and metals prices weakened.
Bank of England Governor Mark Carney has said the UK economy is recovering and does not need a further expansion of the quantitative easing programme.
Fund buyers have cautioned on investing in the UK's buoyant property market, amid fears the sector may be overheating.
The prospect of today's tapering announcement from the US Federal Reserve kept action in the FTSE 100 to a minimum in morning trading.
Mark Carney yesterday declared the British economy is picking up but warned the recovery may prove to be another ‘false dawn'.
Sterling has risen to a seven-month high against the dollar after the UK's unemployment rate unexpectedly dipped from 7.8% to 7.7%.
Update: Benchmark ten-year gilt yields have hit a fresh two-year high of over 3% after the Bank of England opted not to release further ‘forward guidance' earlier this afternoon.