Barclays Group ring-fencing transfer scheme summary
Barclays Group ring-fencing transfer scheme summary

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Barclays Group ring-fencing transfer scheme summary
  • Rationale for bank ring-fencing transfer schemes (RFTS)
  • Key information on the Barclays RFTS
  • Particular provisions of the Barclays RFTS
  • Businesses transferred to BBUKPLC
  • Security provisions
  • Any other key assets/liabilities transferred
  • Any major exceptions to the transfer
  • Other key provisions

Rationale for bank ring-fencing transfer schemes (RFTS)

Ring-fencing of day-to-day banking services (eg current accounts, savings and payments) and separation of retail business from investment banking was one of the reforms brought in by the government to strengthen the financial system following the financial crisis of 2007/2008. The Prudential Regulation Authority’s (PRA) stated aim was to isolate retail banking services from the risks of global wholesale and investment banking, to ensure the continuity of deposit taking services, to ensure greater resilience against financial crises and to remove risks from banks to the public finances. For further background to these structural reforms, see Practice Notes: Ring-fencing—one minute guide, Ring-fencing—timeline and UK structural banking reform—ring-fencing. For general guidance on the practical effects for R&I lawyers, see Practice Note: Bank ring-fencing transfer schemes—impacts for R& lawyers.

Key information on the Barclays RFTS

The table below includes key information for the Barclays Bank PLC RFTS, which was sanctioned on 9 March 2018 by Vos J in Barclays Bank Plc And Woolwich Plan Managers Ltd.

Following the court’s approval, Barclays set up a new ring-fenced bank, Barclays Bank UK PLC, separate from Barclays Bank PLC. The two entities were intended to operate alongside, but independently from, one another as part of the Barclays Group under the listed entity, Barclays PLC.

Subsequently, Barclays