Frequently Asked Questions about the RFTS


Frequently Asked Questions about the RFTS


What is “ring-fencing”?

The Royal Bank of Scotland plc (“RBS plc”), along with other major UK banks, is required by UK law to separate everyday banking services such as current accounts, savings and payments, from investment banking. This separation is called ring-fencing and is designed to make banking safer and to help protect the UK economy. It becomes law from 1 January 2019 and to prepare for it we need to make some changes to the way the RBS group of companies is structured.

To make these changes we’re using a legal scheme called the ‘Ring-Fencing Transfer Scheme’ (RFTS). 

What is the ‘Ring-Fencing Transfer Scheme’ (RFTS) and why do we need Court approval? 

The RFTS is a court process and we need the Court’s permission before we restructure our businesses.


NatWest Bank Plc and NatWest Markets Plc propose to use the RFTS to transfer the interest rate and foreign exchange derivatives over-the-counter business (with respect to derivative transactions that are maturing after 31 August 2018) of NatWest Bank Plc (the “Transferring Business”) to NatWest Markets Plc. This is subject to, amongst other things, regulatory approvals and the approval of the Court of Session in Edinburgh (the “Court”).


When will the Ring-fencing Transfer Scheme become effective?

The preliminary Court hearing was held on 15 May 2018 and the final Court hearing to consider approving the RFTS is expected to be held on 31 July. If the Court approves the RFTS, we expect it will take effect on 13 August 2018. Any change to the date of the final Court hearing or the effective date will be announced on this website. As will the results of the Court decision.

How does the Ring-fencing Transfer Scheme impact you?

The majority of customers bank with our ring-fenced banks using the same accounts, products and services that they used previously. We are contacting customers individually where there may be any difference in products, or how we provide them. Please take time to read  the ‘What this means for customers’ section.


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