The PRA and FCA have both published Consultation Papers on their respective approaches to ring-fencing transfer schemes (RFTS) as part of the implementation of the ring-fencing regime.
The PRA has published Consultation Paper 33/15: The implementation of ring-fencing: the PRA’s approach to ring-fencing transfer schemes (CP33/15), which seeks views on a draft statement of policy setting out its approach to RFTS. Following the Financial Services (Banking Reform) Act 2013, which gave the PRA new powers in respect of RFTS, CP33/15 sets out the PRA’s approach in relation to:
- nomination or approval of the author of the scheme report;
- approval of the form of the scheme report; and
- consent to an application to the court for an order sanctioning an RFTS.
Additionally, the FCA has published Guidance Consultation 15/5: Ring-fencing: Guidance on the FCA’s approach to the implementation of ring-fencing and ring-fencing transfer schemes (GC15/5), which sets out the proposed general guidance on the FCA’s approach to the implementation of ring-fencing in the UK, including its approach in relation to RFTS. The FCA reminds individuals that its guidance should be read in conjunction with CP33/15.
The deadline for comments to CP33/15 and GC15/5 is 30 October 2015.