The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
Ring-fencing of day-to-day banking services (eg current accounts, savings and payments) and the 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
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.
The RBS Group complied with the ring-fencing requirements in two steps.
On 22 March 2018, the Court of Session in Edinburgh, Scotland sanctioned the first Royal Bank of Scotland plc (RBS) RFTS (RBS RFTS 1) (see Practice Note: RBS Group ring-fencing transfer scheme summary).
Following the RBS RFTS 1, the names, registration numbers and registered offices of the transferors and transferee were swapped (clause 7.3.2 of RBS RFTS 1 scheme), meaning that following the transfer:
the Royal Bank of Scotland plc (registered number SC090312) was
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