Treasury has warned that if Scotland becomes an independent sovereign state, EU law would require it to have its own system of financial regulation and a separate financial services regulator. Treasury ministers warned this would be “very, very seriously disruptive” to the UK’s strong financial services sector. Treasury has also produced papers looking at the Scottish banking sector and the consumer protection that the Financial Services Compensation Scheme and Pension Protection Fund provide. (Source: Treasury Warns of Regulatory Danger of Scotland Split, Treasury Looks at Scottish Banking Sector and Treasury Looks at UK Consumer Protection)