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 provide day-to-day products and services to individuals and business (with a turnover less than £6.5m) in the UK.
Products and services designed for our larger corporate, wholesale and investment banking clients will continue to be offered by Barclays Bank PLC and its subsidiaries.
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 Regulation Authority and Barclays.
You will be able to object to the Scheme from 13 November 2017; 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: Sanction Hearing to consider and approve the Ring-Fencing Transfer Scheme
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.
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