UK Prudential Regulator Publishes Policy Statement on Implementation of Ring-Fencing 

The UK Prudential Regulation Authority published a Policy Statement on the implementation of ring-fencing, covering prudential requirements, intragroup arrangements and the use of financial market infrastructures.  The policy statement summarizes feedback received to the consultation paper published in October 2015. The PRA states that it does not consider that the responses received to the consultation paper have necessitated any significant changes to its proposals. 

The Policy Statement is relevant to banking groups that will be required to ring-fence their core activities upon introduction of the ring-fencing regime. This includes both those with “core” deposits in excess of £25 billion and those groups with plans for growth that means they will exceed the threshold by the current proposed implementation date of January 1, 2019.  

Appendices to the policy statement include the final rules and supervisory statement implementing the proposals consulted on in the previous consultation paper and the near-final rules that were published in May of last year.   

The Policy Statement and rules will come into effect on January 1, 2019.

View the PRA update. 

View the Policy Statement.

View the final rules. 

View the Supervisory Statement.