As part of its response to the global financial crisis of 2008, HM Government introduced legislation requiring U.K. banks to separate the provision of core retail services from other activities within their groups. These requirements are known as “ring-fencing.” The U.K.’s ring-fencing regime broadly covers U.K. banks with more than £25 billion of core (retail and SME) deposits and has applied since 1 January 2019.
The implementation of the bank ring-fencing regime in the U.K. has given rise to several issues of legal uncertainty. In this Report, the FMLC has sought to identify these legal uncertainties, explain their impact on market participants, and make recommendations on how each might be resolved. The Appendix collates the FMLC’s recommendations for ease of reference.
Available as: PDF.