GC15/5: Ring-fencing: Guidance on the FCA’s approach to the implementation of ring-fencing and ring-fencing transfer schemes

This consultation sets out the proposed general guidance on our approach to the implementation of ring-fencing in the UK, including our approach in relation to ring-fencing transfer schemes (RFTSs).

Why are we consulting on this?

We will need to assess the potential risks posed by the implementation of ring-fencing to our objectives. In addition, the PRA will consult us in relation to RFTSs (transfers of business to achieve ring-fencing purposes) and we will need to assess the potential risks posed by the proposed schemes to our objectives. This guidance therefore sets out our proposed approach to the implementation of ring-fencing and RFTSs. It also clarifies our approach to applications for authorisations or other regulatory transactions submitted by firms for the implementation of ring-fencing.

Our guidance should be read in conjunction with the PRA’s consultation paper CP33/15 setting out the PRA’s proposed approach to RFTSs.   

In addition, we are also required under the secondary legislation on ring-fencing to make rules specifying the information that non ring-fenced bodies must provide to certain individuals. We published the consultation on our proposed rules in this area in July 2015 (CP15/23).

Guidance Consultation 15/5 [PDF]

Who is this paper aimed at?

This guidance consultation is relevant to banking groups that are required by the Financial Services and Markets Act 2000 to establish a ring-fence for their retail banking activities aimed at isolating those activities from investment banking activities.

Next steps

We want to know what you think of our proposals. Send your comments to [email protected] by 30 October 2015.

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