On August 5, 2014, the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014 was published. The Order sets out the activities that a ring-fenced bank may and may not carry out, including exceptions to the rule that a ring-fenced bank may not deal with investments as principal. The Order also restricts a ring-fenced bank from entering into any transactions which would enable it to use the services provided through an inter-bank payments system, restricts the exposures a ring-fenced bank may have to relevant financial institutions and provides that a ring-fenced bank may not have a subsidiary or branch outside of the EEA. The provisions setting out the defining terms in the Order come into effect on January 1, 2015. The remainder of the provisions will come into effect on January 1, 2019.

The Order is available at:

http://www.legislation.gov.uk/uksi/2014/2080/pdfs/uksi_20142080_en.pdf.