The Prudential Regulation Authority has issued a policy statement (PS10/15) on the implementation of ring-fencing of core UK financial services and activities by banks, including banking groups with core deposits greater than £25 billion. The policy statement covers:
- legal structure arrangements of banking groups subject to ring-fencing;
- governance arrangements of ring-fenced bodies; and
- arrangements to ensure continuity of services and facilities to ring-fenced bodies.
The Government has stated its intention for ring-fencing to take effect from 1 January 2019. The PRA intends to undertake a further consultation during 2015 and to publish final rules and supervisory statements covering the policy proposed in these two consultations during 2016 H1, to provide firms with sufficient time for implementation.