Important information about the ring-fencing transfer scheme


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).

There's nothing you need to do as a result of the RFTS. If you think you may be adversely affected, the information below lets you know how to make your views known.

What is the RFTS? 

The RFTS is a Court process and we need the Court’s permission before we can restructure our businesses. To find our more about the RFTS, watch our video or read on.

The RFTS will transfer most of the personal, private, business and commercial business currently carried out by The Royal Bank of Scotland plc (“RBS plc”) to Adam & Company plc or National Westminster Bank Plc. On the same day as this transfer happens, Adam & Company plc will be renamed “The Royal Bank of Scotland plc” and the ‘current’ RBS plc will then be renamed “NatWest Markets Plc”. 

The RFTS process contains safeguards that seek to protect the interests of the bank’s customers, counterparties and other stakeholders. An important element in that process is the role of the Skilled Person. A Skilled Person must be appointed by the bank and approved by the PRA in consultation with the FCA, to prepare an independent assessment of the RFTS, in which the Skilled Person is asked to establish if any persons are likely to be adversely affected by the scheme, and if so, whether that effect is more than is reasonably necessary in order to implement ring-fencing.

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 majority of customers will bank with our ring-fenced banks using the same accounts, products and services that they use today. For those customers where there may be any difference in products, or how we provide them, we will be in touch to explain this fully. Please take time to read “What this means for customers” section.

As a result of the RFTS, you’ll see a change of our Companies House and Financial Services Register details on the communications and documents you receive from us. There’s nothing you need to do.

What happens next? 

The preliminary Court hearing was held on 21 November 2017 and the final Court hearing to consider approving the RFTS is expected to be held on 22 March 2018.

If the Court approves the RFTS, we expect it will take effect on 30 April 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. 

Ways to make your views known to the Court 

If you think you would be adversely affected by the carrying out of the RFTS and wish to object, you need to do this by 23 February 2018 in order to ensure the Court will consider your objection at the hearing to consider approving the RFTS. No fee is payable to the Court for objecting in this way.  You need to send a written statement of your views to all of the following:

a) the Court at Parliament House, Parliament Square, Edinburgh EH1 1RQ

b) RBS plc at 36 St Andrew Square, Edinburgh EH2 2YB; and

c) the Prudential Regulation Authority, either:

 i. by post to The Royal Bank of Scotland, Prudential Regulation Authority, Bank of England,      Threadneedle Street, London EC2R 8AH; or

 ii. by submitting it online here

The Court may also consider any objections made in writing or in person at the hearing to consider approving the RFTS, although it may not do so if you have not followed the process for objecting described above. 

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