Lloyds Banking Group ring-fencing transfer scheme summary
Lloyds Banking Group ring-fencing transfer scheme summary

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

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

The table below includes key information for the Lloyds RFTS which was sanctioned by Hildyard J on 3 May 2018 in Re Lloyds Bank plc.

Bank name(s) (Transferor)(here, the ring-fenced bank) Transferee Effective time of transfer Li