On December 5, 2018, the U.K. Financial Services (Banking Reform) Act 2013 (Commencement No. 12) Order 2018 was made. The Order brings into force, from January 1, 2019, those provisions of the Financial Services (Banking Reform) Act 2013 on ring-fencing that are not already in force, including the prohibition on ringfenced bodies to carry on excluded activities and provisions on group restructuring. The U.K. ring-fencing laws require U.K. banks which hold more than £25 billion in core deposits and banking groups whose members hold an average core deposit of more than £25 billion to separate their core retail banking business from their investment banking business. Restrictions will limit the products that a ring-fenced bank can offer and where it can conduct business. In particular, a ring-fenced bank will not be able to own a banking subsidiary or branch which is established outside of the EEA.
The Order is available at: http://www.legislation.gov.uk/uksi/2018/1306/pdfs/uksi_20181306_en.pdf.
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