header-logo header-logo

City reforms to abolish ring-fencing of retail banking

12 December 2022
Issue: 8007 / Categories: Legal News , Regulatory , Banking
printer mail-detail
The requirement to ring-fence retail banking from investment activities, which was introduced following the 2008 financial crash, is to be abolished.

The reform, which applies to companies with assets below £35bn, is part of a package of 30 ‘Edinburgh reforms’ announced by the chancellor in the Scottish capital last week. Others include giving regulators the Financial Conduct Authority and the Prudential Regulation Authority new secondary objectives of growth and competitiveness, reviewing the senior managers and certification regime, and relaxing fund-raising restrictions on building societies so they can compete with retail banks.

Chris Hayward, policy chair at the City of London Corporation, described the reform package as ‘positive news for financial services’, while James Watkins, head of policy at the London Chamber of Commerce and Industry, said they were ‘broadly supportive’.

However, shadow city minister Tulip Siddiq said: ‘Reforms such as ring fencing and the senior managers regime were introduced for good reason.’

Issue: 8007 / Categories: Legal News , Regulatory , Banking
printer mail-details

MOVERS & SHAKERS

Quinn Emanuel—James McSweeney

Quinn Emanuel—James McSweeney

London promotion underscores firm’s investment in white collar and investigations

Ward Hadaway—Louise Miller

Ward Hadaway—Louise Miller

Private client team strengthened by partner appointment

NLJ Career Profile: Kate Gaskell, Flex Legal

NLJ Career Profile: Kate Gaskell, Flex Legal

Kate Gaskell, CEO of Flex Legal, reflects on chasing her childhood dreams underscores the importance of welcoming those from all backgrounds into the profession

NEWS
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
In NLJ this week, Ian Smith, emeritus professor at UEA, explores major developments in employment law from the Supreme Court and appellate courts
Writing in NLJ this week, Kamran Rehman and Harriet Campbell of Penningtons Manches Cooper examine Operafund Eco-Invest SICAV plc v Spain, where the Commercial Court held that ICSID and Energy Charter Treaty awards cannot be assigned
back-to-top-scroll