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Preparing for ring-fencing
About us

Business and Corporate Banking

Which part of Barclays will my business be in?

We expect that clients that have a turnover (body corporates) or gross income (non-body corporates) of at least £6.5m in the last complete financial year, will remain served by Barclays Bank PLC.

Alternative qualifying criteria will exist in certain industries - your Relationship Director will explain if these other criteria are relevant to you and which of the criteria you’ve been assessed against.

Please note that the criteria will be applied at business entity level and to the largest business if the organisation is a group.

Clients who do not meet the relevant criteria will be served by our business banking teams within our ring-fenced bank.

What are the timescales for implementation?

To comply with legislative requirements, Barclays must complete the transition by 1 January 2019, subject to approval, we plan to implement these changes as early as the first half of 2018, well ahead of this deadline.

  • 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.

  • 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 FSCS protection limit is £85,000 per depositor per bank. For joint accounts, the limit of £85,000 applies to each depositor separately. Barclays Bank PLC and Barclays ring-fenced bank will be separate banks for the purposes of FSCS protection. You can find further information at barclays.co.uk/fscslimit.

  • 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.

  • Will ring-fencing affect my tax position?

    There will be no changes in tax position as a result of ring-fencing for customers and clients who remain fully served by Barclays Bank PLC (BB PLC).

    In all other cases e.g. customers and clients moving to our ring-fenced bank or customers and clients who remain served by BB PLC, but with one or more product/service moving to the ring-fenced bank, we do not believe these changes will impact your tax position. However, as Barclays does not provide tax advice, we suggest you speak to a tax advisor.

  • Barclays Bank Base Rate is a reference rate, set by Barclays Bank PLC, which Barclays uses for a range of products. The ring-fenced bank will no longer refer to Barclays Bank Base Rate and will in the future use the rate set by the Bank of England, the Bank of England Base Rate, or in the event that the Bank of England Base Rate no longer exists, such replacement rate as the ring-fenced bank may specify.

    As a result, when customer accounts in Sterling transfer to the ring-fenced bank in April 2018, if there is a reference to Barclays Bank Base Rate, that reference will be replaced with a reference to the Bank of England Base Rate.
    Barclays Bank Base Rate tracks the Bank of England Base Rate, but is not always guaranteed to do so. However, Barclays Bank Base Rate has been the same as the Bank of England Base Rate for many years.

    Barclays Bank Base Rate will still be used by Barclays Bank PLC.

  • As a result of ring-fencing it is possible that, from a legal perspective, your Security may be transferred from Barclays Bank PLC to another entity within the Barclays group. This does not affect the nature of the legal contract we have with you, or that you have with us, and you do not need to do anything as a result of these changes.

    More information

  • As a result of ring-fencing it is possible that, from a legal perspective, the benefit of your Guarantee may be changed so that it is in favour of another group company as well as, or instead of, Barclays Bank PLC. This does not affect the nature of the legal contract we have with you, or that you have with us, and you do not need to do anything as a result of these changes.

    More information

  • What will be the credit ratings of each part of Barclays?

    Our objective is to maintain solid investment grade ratings for both Barclays Bank PLC and the ring-fenced bank, once established, and we intend to create as much stability in our ratings as we can- both before and after ring-fencing.

We’re making changes to some sort codes

  • What impact will ring-fencing have on sort codes?

    One of the implications of ring-fencing legislation is that we won’t be able to have clients on the same sort code in both entities. As such, some clients’ sort codes may need to change. This is because sort codes can’t be shared between the ring-fenced bank and the rest of Barclays. At the moment, some sort codes are being used both by clients who will remain with Barclays Bank PLC and clients who will be moving to the new ring-fenced bank. This means there will be a requirement to change those sort codes impacted before we complete the transfer. Please note that account numbers will not change.

    A different sort code will also mean that your International Bank Account Number (IBAN) will change, as your IBAN includes your sort code. If this change affects you, we will keep you up to date with what is happening and when.

    You can continue to make payments using your old sort codes for up to 12 months after any changes are applied. Additionally, we will also forward any payments made to you using the old sort code details for up to three years.

    If you are impacted by sort code migrations we will contact you.

    If you have a relationship contact, they will be able to explain the changes and answer any questions you may have including concerns you have about the communications you have received. Dedicated support teams will also be available to help you prepare for the forthcoming changes and guide you through every step of the journey before, during and after the changes are applied.

    You can reach the dedicated support teams via the telephone numbers referenced in the communications regarding the sort code migrations.

    You may also receive emails regarding sort code migration. You should know that all emails from the Barclays sort code migration team will be sent from a Barclays email address with the domain @barclays.com. The full email address will have been provided during our first contact. 

  • When will the sort code change happen and how much notice will there be?

    We will move to the new sort codes over a series of weekends between July 2017 and January 2018. We will make sure we keep you up to date with what is happening and when. We will also contact you in good time to let you know that your changeover date is approaching.

    What are you doing to ensure that incoming and outgoing payments are not disrupted or delayed due to the sort code changes?

    Inbound payments (UK Three Day Payments (BACS), UK Faster Payment Services (FPS), domestic Same Day Payments (CHAPS), SEPA Credit Transfers and International Payments) will be automatically re directed to the new sort code for up to three years. Advices will be sent to the remitters of UK Three Day Payments (BACS) and payments sent via the UK Faster Payments Service (FPS) to ask them to amend future payment details.

    For a period of up to one year, you may send us files from your systems quoting your old sort code. This is so that you have plenty of time to amend your own systems if needed.

    UK Direct Debit originators will have their collection accounts updated centrally and their customers will see no change.

    Who needs to be told about this?

    We will contact anyone that pays you using the UK Three Day Payments (BACS) and UK Faster Payments Services (FPS) to ask them to amend future payment details. We may be in touch again towards the end of the redirection period, if we notice that companies/individuals have not updated their records, asking you to inform them of your new sort code.

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