GovWire

The independent review on ring-fencing, chaired by Sir Keith Skeoch, found that the benefits of the ring-fencing regime would likely reduce over time as the resolution regime for banks is embedded. The review concluded that the resolution regime offers a more comprehensive solution to addressing the problems of too big to fail and recommended that the government consider the practicalities of aligning the ring-fencing and banking resolution regimes, while maintaining the UKs financial stability.

This Call for Evidence is the first stage in the governments response to this recommendation. It seeks views on the ongoing benefits that ring-fencing provides to financial stability not found elsewhere in the regulatory framework and on the steps that could be taken to better align the ring-fencing and resolution regimes without losing financial stability benefits. The Call for Evidence invites respondents to consider a wide range of options for the longer-term future of ring-fencing.