Important information about the Ring-fencing Transfer Scheme
We're making some changes to the way our business is structured. This is to prepare for a change in UK law which requires us, along with other major UK banks, 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 reorganise the way the RBS Group is structured.
To make these changes we’re using a legal scheme called the ‘Ring-fencing Transfer Scheme’ (RFTS). We are pleased to confirm that the first RFTS was implemented on 30 April 2018. We completed a second RFTS (RFTS2) in August 2018. This impacted certain markets products transferring from NatWest Bank Plc to NatWest Markets Plc.
What is the RFTS?
The RFTS is a Court process and we need the Court’s permission before we can restructure our businesses.
NatWest Bank Plc and NatWest Markets Plc used a 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 was subject to, amongst other things, regulatory approvals and the approval of the Court of Session in Edinburgh (the “Court”).
For copies of the RFTS documents, including the Skilled Person's report and a summary of the Skilled Person’s report, go to the RFTS documents page.
What does this mean for you?
The second RFTS (RFTS 2) was approved by the Court of Session in Scotland at a hearing held on 31 July 2018, and took effect on 13 August 2018.
There’s nothing you need to do as a result of the RFTS. There will be no changes to any banking services we offer.
As a result of the RFTS, you’ll see a change to our Companies House and Financial Services Register details on the communications and documents you receive from us.
We encourage you to take time to read the ‘Notification of the Ring-fencing Transfer Scheme’ booklet which you can find here and which gives you more information about the RFTS changes, including changes applying to particular transferring products and non-transferring products.