Why we’re making a change
Ring-fencing of day to day banking services is one of the reforms brought in by the UK government, aiming to strengthen the financial system following the financial crisis that began in 2008.
Barclays will satisfy this requirement by setting up a new ring-fenced bank, subject to approval, in April 2018, which will be separate from Barclays Bank PLC. The two entities will operate alongside, but independently from, one another as part of the Barclays Group under the listed entity, Barclays PLC.
Barclays ring-fenced bank will be a personal and business banking franchise with true scale, built around our customers’ needs, with innovation at its core.
Providing day to day products and services to individuals and business (with a turnover less than £6.5m) in the UK, our ring-fenced bank will include:
- Deposit taking
- Mortgage lending
- Payment cards and digital payment solutions
- Personal loans
- Business banking
- Wealth Management
Barclays Bank PLC will be a diversified transatlantic, wholesale and consumer bank with two home markets – the UK and US. It will comprise our:
- Corporate and Investment Bank
- International cards business
- Payments capability through both Corporate Banking and Barclaycard
- Private Bank & Overseas Services business
How does this affect me?
Most customers and clients will continue to have access to the same products and services they have now, and will be able to keep banking the way they’re used to– online, using our Barclays Mobile Banking app, over the phone and in-branch.
How the change will happen
You do not need to take any action for the change to take place.
We are seeking approval from the Prudential Regulation Authority and the High Court of England and Wales (the “Court”) to complete the restructure using a legal process called a Ring-Fencing Transfer Scheme (the “Scheme”) under Part VII of the Financial Services and Markets Act 2000.
A hearing is scheduled in November 2017 for the Court to initiate the process to consider and approve the Scheme. Subject to approval, we expect to implement the restructure in the first half of 2018, well ahead of the 1 January 2019 legislative deadline.
Ways to make sure your views are considered at Court
If you think that you may be adversely affected by the Scheme, you have the right to object to the Scheme and to have your objection heard by the Court.
To do this you will first need to file a written statement to the Court. At the same time, a copy must be sent to the Prudential Regulatory Authority and Barclays.
You will be able to object to the Scheme after the November hearing, in line with the legislative process. We will update this section in due course with further information.
Timetable for the Court process
- 31 July 2017: Interim Hearing for preliminary directions on communications, including in relation to transferring customers and clients
- 13 November 2017: Directions Hearing to agree overall plan for communications with stakeholders
- 26 and 27 February 2018: Sanctions Hearing to consider and approve the ring-fencing transfer Scheme
Your terms and conditions
Certain Terms and Conditions will need to change, principally to ensure that our customer and client contractual relationships continue to work in light of our new structure, and to comply with ring-fencing requirements. An example of this is changing references in customer and client agreements from BBPLC to the new name of our ring-fenced bank.
How can I protect myself from fraud?
We are committed to providing our customers and clients with the information they need to combat fraud and cybersecurity breaches. If you have any concerns around the risks of fraud or scams, information on how to protect against fraud can be found at:
Depositor Protection Scheme
If your money is eligible for protection today under the UK Financial Services Compensation Scheme (FSCS) Depositor Protection Scheme, ring-fencing won’t change that.
The FSCS, the independent deposit protection scheme for the UK, is in place to pay compensation to depositors if a bank is unable to meet its financial obligations.
The new protection limit of £85,000 per person per firm came into effect at the beginning of 2017. If you have a Barclays joint deposit account with another person, the limit of £85,000 applies individually to each account holder. You can find further information at barclays.co.uk/fscslimit
Will these changes affect my International Bank Account Number (IBAN)
Barclays’ new ring-fenced bank will be issued with a new Bank Identification Code (BIC).
If you are transferring to our ring-fenced bank, your International Bank Account Number (IBAN) will also change, as the IBAN contains the BIC.
This will only affect you if you receive international payments to your account. You can find out what your IBAN is at any time by visiting www.barclays.co.uk and searching ‘IBAN’ then using the ‘IBAN generator tool’.
After the change, we will redirect any incoming payments that use your old IBAN for a period of 36 months. This is to make sure you have plenty of time to tell anyone who makes international payments to you about your new IBAN. To avoid potential delays, however, we encourage you to make arrangements as soon as possible. If necessary, we will contact you again towards the end of the redirection period to remind you to tell anyone paying you money that your IBAN has changed.
We will contact you separately if your sort code is also changing.
For our suppliers
Barclays’ suppliers and landlords play a critical role in enabling us to deliver services to our customers and operate effectively as a bank. This will continue to be the case in Barclays future ring-fenced structure. We will be in contact with our suppliers to provide further information about what Barclays ring-fencing will involve for them.
Where to go for more information
We’ll continue to update this page with more information on our plans, and what they mean for you.
The Financial Conduct Authority (FCA) and the Bank of England (BoE) have published information explaining more about ring-fencing.