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Home > Prudential Regulation Authority > The implementation of ring-fencing: consultation on legal structure, governance and the continuity of services and facilities - CP19/14
 

The implementation of ring-fencing: consultation on legal structure, governance and the continuity of services and facilities - CP19/14

06 October 2014

​Background

The PRA is required under the Financial Services and Markets Act 2000 (as amended by the Financial Services (Banking Reform) Act 2013) to make policy to implement the ring-fencing of core UK financial services and activities.
 
This consultation paper (CP) is relevant to banks which will be required to ring-fence their core activities. This will include banking groups with core deposits greater than £25 billion. It will also be of interest to financial and other institutions and customers who have dealings with these banks.
 
The Government has stated its intention for ring-fencing to take effect from 1 January 2019. The PRA intends to undertake further consultations during 2015 and to publish final rules and supervisory statements in 2016 to provide firms with sufficient time for implementation.
 
Summary of proposals
 
This CP sets out PRA policy proposals in three areas:
 
  • 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.
Readers may also wish to refer to Ensuring operational continuity in resolution – DP1/14, Depositor protection – CP20/14, and Policyholder protection – CP21/14 also published on Monday 6 October 2014.
 
Responses
 
The consultation closed on Tuesday 6 January 2015.
 
Please address any comments or enquiries (structured by Chapter) to CP19_14@bankofengland.co.uk
 
Consultation paper
 
 
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