RBS outlines ring-fencing date
Royal Bank of Scotland (RBS) has said the ring-fencing of its retail banking operations will take effect at the end of this month, following Barclays, which recently became the first British lender to complete the process.
RBS’ official launch on 30 April will make the Gogarburn-based group the latest bank to formally transfer its retail customers to a separate unit as part of new UK regulations designed to protect consumer cash from investment banking risks.
The changes will involve separating its retail customers that are members of banking brands including RBS, Natwest and Ulster Bank. It will also mean ring-fencing some members of Coutts, and other RBS brands like Lombard, Drummonds, RBS Invoice Finance, Adam & Company and Holt’s Military Banking.
A spokesman for RBS – which is still 73 per cent owned by the taxpayer – said personal customers should not expect disruption to services as a result of the changes that willbemadeovertheweekend leading up to 30 April.
The non-ring-fenced bank will be made up of clients from Natwest Markets, Natwest International, RBS International and Isle of Man Bank.
The news comes just days after Barclays became the first British bank to complete the process ahead of the January 2019 deadline.
Barclays’ own transfer of customers took place over the Easter weekend, populating what is now called Barclays Bank UK – a unit that is separate from Barclays Bank, which offers products and services for its larger corporate, wholesale and international banking clients.
Rules on ring-fencing – separating core retail banking from investment banking – only apply to UK lenders holding more than £25 billion in core deposits from individuals and SMES. It was the key recommendation of Sir John Vickers’ Independent Commission on Banking.