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Banking reform - what ring-fencing means for your business

UK banking regulation is undergoing significant changes which will affect UK banks and foreign banks operating in the UK.

The part of these reforms which has received the most attention is the proposal to 'ring-fence' what in reality is the retail arm of UK banks from the remainder of the bank’s operations.

This is to ensure that either side of the ring-fence need to be able to operate independently, with the acid test being whether they could function independently were the areas forced to operate as completely separate entities.

This will create a broad range of strategic and operational issues for legal and commercial functions in many banks. There will be implications for arrangements relating to tax, real estate, employment, pensions, third-party contracts, and litigation and competition considerations.

Without necessary planning these issues could have a material impact on customer experience and perception.

This series of guides outline the issues facing banks in these areas:

Third party contracts

Disputes and litigation risk

Issues for directors


Financial products

Asset transfers


Competition law

Employment law and pensions