Banking reorganisation in a brave new world

By Wendy Benjamin

The banking world has changed. On 1 April 2013 the UK’s Financial Services Authority was split into three separate entities: the Financial Conduct Authority, the Prudential Regulation Authority and the Financial Policy Committee. UK banks are still assessing this new ‘three-for-one’ regulatory regime and a host of new financial services regulations. Liquidity and capital adequacy requirements remain high on the agenda. This may lead to strategic reorganisations of banking groups, including offshore subsidiaries and branches.

Until recently the options available for banking reorganisations were limited in Jersey — historically the most favoured option being the use of private laws, however, these were time consuming and expensive. So, in 2008 the Banking Business (Jersey) Law 1991 (Banking Law) was amended to allow Jersey banking businesses (technically a deposit-taking business) to be transferred from one bank to another by means of a court-sanctioned scheme. Transfers under the Banking Law are meant to be relatively quick and cost effective — perhaps involving about half the time and cost of a private law.

Despite that, the Banking Law has not proved to be the most popular of laws. It has been used only once so far to effect the transfer of the accounts of the Jersey branch of Bank of Scotland to Lloyds TSB in 2011. But its use is bound to increase in the next year or so…

If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Appleby

View more briefings from Appleby

Analysis from The Lawyer

View more analysis from The Lawyer


1st Floor
3 Copthall Avenue

Total staff: 528
Partners: 64