Published on 4 March 2016
The implementation of ring-fencing: the PRA’s approach to ring-fencing transfer schemes – PS10/16
This policy statement (PS) sets out the Prudential Regulation Authority’s (PRA) responses to feedback on Consultation Paper 33/15 ‘The implementation of ring-fencing: the PRA’s approach to ring-fencing transfer schemes’. This PS also includes the final statement of policy (SoP) following CP33/15.
Part VII of the Financial Services and Markets Act 2000 (FSMA) provides for a process leading to a court order to facilitate transfers of insurance or banking business. The Financial Services (Banking Reform) Act 2013 legislated for an additional process for transfer of business known as an RFTS. Its purpose is to enable firms to restructure their businesses in order to comply with the ring-fencing requirements that will apply from 1 January 2019. This policy statement focuses on the PRA’s functions relating to this particular transfer of business.
This policy statement will be of interest to banks which will be required by FSMA, as amended by the Financial Services (Banking Reform) Act 2013, to ring-fence their activities. It will be of relevance to skilled persons commissioned to author the scheme report submitted to the court as part of the RFTS application. It may also be of interest to other financial institutions and customers who have dealings with ring-fenced bodies.
On 4 March the FCA also published its final ring-fencing transfer scheme guidance.
Policy Statement 10/16Published on 18 September 2015
The implementation of ring-fencing: the PRA's approach to ring-fencing transfer schemes - CP33/15
- nomination or approval of the author of the scheme report (FSMA section 109A(2));
- approval of the form of the scheme report (FSMA section 109A(3)); and
- consent to an application to the court for an order sanctioning an RFTS (FSMA section 107(2A).
This consultation closed on Friday 30 October 2015.