Letter: Ring-fencing and Proprietary Trading Independent Review: 1 June 2021

The FMLC has previously commented on issues of legal uncertainty arising in relation to the Financial Services (Banking Reform) Act 2013 (the
FSBRA”), which established the ring-fenced banking regime. Not all the issues raised at the time were, however, addressed in the FSBRA, and experience of the functioning of the regime demonstrates that many of those issues remain of concern and that others have been identified. The FMLC has therefore resolved to establish a Working Group to consider issues of legal uncertainty arising in the context of U.K.’s Bank Ring-Fencing regime. 

The Working Group has noted with interest the appointment by HM Treasury of an independent panel to review the operation of the legislation relating to ring-fencing and the publication of a Call for Evidence.  As the Working Group has only just been established, its work has not progressed sufficiently so as to respond to the Call for Evidence.  A letter was instead sent to the Independent Review Panel drawing attention to the Working Group’s remit and proposed output.

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