How RBS is implementing ring-fencing

How RBS is implementing ring-fencing

Implementing ring-fencing requires changes to the structure of the RBS Group.  We will offer a broad range of products and services from within the ring-fence.

To help facilitate the separation of essential banking services from investment banking services, we are using a legal scheme called a Ring-Fencing Transfer Scheme (RFTS). We are planning to complete two RFTSs during the course of 2018 .

We are pleased to confirm that the first RFTS was implemented on 30 April 2018. The first RFTS (RFTS 1) transferred some of our customers from The Royal Bank of Scotland plc (RBS plc) to Adam & Company plc. In addition, certain advisory products and a covered bond programme were transferred from RBS plc to National Westminster Bank Plc (NatWest Bank Plc). When this transfer occurred, we also renamed the legal entity Adam & Company plc to The Royal Bank of Scotland plc.

In parallel, the current RBS plc was renamed NatWest Markets Plc which is one of the entities through which we will deliver markets products that must sit outside of the ring-fence.

We will complete a further RFTS (RFTS 2), later in 2018 which will transfer certain markets products from NatWest Bank Plc to NatWest Markets Plc. Should you be affected by RFTS2, we will contact you with further information.

What this means for you

If the Court approves RFTS 2, any interest rate or foreign exchange derivative transactions you have with National Westminster Bank Plc (“NatWest Bank Plc”) that mature after 31 August 2018, related contractual arrangements and “Secured Empty Arrangements” will transfer to NatWest Markets Plc at the time the RFTS takes effect (albeit customers with transactions that are categorised as “Eligible Derivatives” will have the opportunity to “opt out” of the Scheme for those trades. For a definition of Eligible Derivatives see “Notification of the Ring-fencing Transfer Scheme” booklet) . Following RFTS 2, NatWest Bank Plc will no longer offer any new interest rate or foreign exchange derivatives.

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