Have you granted security to Barclays Bank PLC in relation to your own or another person’s liabilities?
Will the liabilities which you secured move (either in whole or in part) to Barclays’ ring-fenced bank?
If no, there will be no change to your security.
Was the security you granted provided in relation to a Business or Corporate Banking product? (if you are not sure, please refer to your relationship point, who will be able to help you).
If yes, this relates to a Business or Corporate Banking product:
The security will continue on the same basis as prior to the transfer but will be held by either Barclays Security Trustee Limited on behalf of Barclays’ ring-fenced bank and Barclays Bank PLC (BBPLC) or Barclays’ ring-fenced bank – see below for more information.
If no, this does not relate to either a Business or Corporate Banking product:
The security will continue on the same basis as prior to the transfer but will be held by Barclays’ ring-fenced bank.
What type of security interests will be affected?
All types of security governed by UK law may be affected – that includes any mortgage (business or residential), charge (fixed or floating), pledge, lien, security assignment or other arrangement entered into for the purpose of providing security and any other encumbrance or security interest of any kind. This includes both security granted in respect of a specific debt and security given on an “all monies” basis.
If my security interest is transferring, what will change?
The only thing that will change is that your security will be deemed to have been granted either:
1. directly to Barclays’ ring-fenced bank; or
2. to the Barclays Security Trustee Limited (the Security Trustee) to be held on trust for either Barclays’ ring-fenced bank alone or Barclays’ ring-fenced bank and BBPLC together, and certain obligations within the security documentation which previously applied to BBPLC will be deemed to refer or relate to either Barclays’ ring-fenced bank or the Security Trustee instead.
This change will be effected by the Ring-Fencing Transfer Scheme and you will not need to take any action in relation to the change. Whether your security remains with BBPLC, transfers to the Security Trustee, or transfers to Barclays’ ring-fenced bank will depend both on the type of security and the nature of the secured obligation it supports. Generally speaking, if the liability is transferring to Barclays’ ring-fenced bank then the security will move to the security trustee. However, there are some exceptions to this. More detail. (PDF 465KB)
If you have granted security which was registered (for example at the Land Registry or at Companies House) Barclays may amend the register to reflect the transfer of the security interest, but you will not need to take any action with respect to registers.
What happens if my security is not under the law of a UK jurisdiction?
Subject to some exceptions, this will be dealt with outside the RFTS.
What if I’m a tax resident outside the UK?
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.