HSBC Group ring-fencing transfer scheme summary
HSBC Group ring-fencing transfer scheme summary

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

  • HSBC Group ring-fencing transfer scheme summary
  • Rationale for bank ring-fencing transfer schemes (RFTS)
  • Key information on the HSBC RFTS
  • Particular provisions of the HSBC RFTS

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 HSBC RFTS

The table below includes key information for the HSBC Holdings PLC (HSBC) RFTS which was sanctioned by the Chancellor, Vos J, on 21 May 2018 (see Re HSBC Bank plc). Following the transfer, Marks and Spencer Financial Services plc and HSBC Private Bank (UK) Limited were subsidiaries of HSBC UK and also were ring-fenced banks.

Bank name (Transferor) Transferee (here, the ring-fenced bank)