On July 7, 2016, the UK PRA published a Policy Statement on the implementation of ring-fencing, covering prudential requirements, intragroup arrangements and the use of financial market infrastructures. The Policy Statement summarizes feedback received to the consultation paper published in October 2015. The PRA states that it does not consider that the responses received to the consultation paper have necessitated any significant changes to its proposals.
The Policy Statement is relevant to banking groups that will be required to ring-fence their core activities upon introduction of the ring-fencing regime. This includes both those with “core” deposits in excess of £25 billion and those groups with plans for growth that mean they will exceed the threshold by the implementation date of January 1, 2019.
Appendices to the Policy Statement include the final rules and supervisory statement implementing the proposals consulted on in the previous consultation paper and the near-final rules that were published in May of last year. The Policy Statement will come into effect on January 1, 2019.
The Policy Statement is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ps/2016/ps2016.pdf, the final rules are available at: http://www.bankofengland.co.uk/pra/Documents/publications/ps/2016/ps2016app1.pdf and the Supervisory Statement is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ss/2016/ss816.pdf.