GovWire

The independent review of ring-fencing, chaired by Sir Keith Skeoch, made a series of near-term recommendations to improve the operation of the ring-fencing regime.

The consultation invites views on draft secondary legislation to implement a package of reforms to the ring-fencing regime, that broadly take forward the independent reviews recommendations. The government plans to introduce legislation in Parliament in early 2024, subject to parliamentary time.

This significant package of reforms will improve outcomes for banks and their customers as well as benefit competition and the competitiveness of the UK banking sector. The proposed changes represent a necessary evolution of the ring-fencing regime to make it more flexible and proportionate, whilst maintaining appropriate financial stability safeguards and minimising risks to public funds.

Separately, the government has published a response to the Call for Evidence on aligning the ring-fencing and resolution regimes