Ring-fencing — the detail

The 2007–09 financial crisis led the government to undertake a programme of structural reform of the UK banking system. A central element of this is the requirement for UK banks to ring-fence their retail activities (both personal and small and medium-sized enterprises, or SMEs) from wholesale and investment banking by protecting the provision of core banking services to retail and SME depositors.

Core banking services are defined as: facilities for accepting deposits or other payments; facilities for withdrawing money or making payments; and overdraft facilities.

The framework for ring-fencing was set out in the Financial Services (Banking Reform) Act 2013, which provides for the separation of core activities (deposit taking) that must be carried out by ring-fenced bodies (RFBs) from excluded activities (trading in investments), which RFBs are not permitted to do…

Click on the link below to read the rest of the Gateley briefing.

Briefings from Gateley

View more briefings from Gateley

Analysis from The Lawyer

Overview

111 Edmund Street
Birmingham
B3 2HJ
UK
http://www.gateleyuk.com/news-and-events/social-media/

Turnover (£m): 66.00
No. of Lawyers: 372