View more on these topics

Banks win ringfencing concession

Parliament-London-UK-Night-700x450.jpg

The retail ringfencing programme for banks is to be less rigorous than feared following changes to the rules.

The Bank of England laid out the policy shift yesterday, which will allow ringfenced institutions to pay dividends back to their parent group.

The programme, which was originally devised as a way to safeguard retail deposits in the aftermath of the financial crisis, has long been a bone of contention for the UK’s banks, which have argued it puts them at a competitive disadvantage to their overseas peers.

The rules on ringfencing are due to come into force from 2019.

Treasury select committee chairman Andrew Tyrie reacted to the decision by questioning whether it has been made after “special pleading” by the banks.

The TSC will next week take evidence from Chancellor George Osborne, Prudential Regulation Authority chief executive Andrew Bailey and Bank of England governor Mark Carney on the Bank of England bill, which will include the reforms.

Tyrie says: “Were it to turn out, in a year or two, that the regulators still do not have the tools they need to do the job, they need to tell us so, and for Parliament to respond.”

Recommended

RBS-Building-500x320.jpg
1

RBS looks to buy £13bn Govt mortgage book

Royal Bank of Scotland is reportedly close to a deal to buy more than £13bn of Government-backed mortgages. The bank, which is still backed by the taxpayer, is contending with US hedge fund Cerberus and TSB-owner Sabadell to seal the deal, according to the Sunday Times. The Government acquired the home loans following the collapses […]

2014-Budget-George-Osborne-Walking-700.jpg

What would ‘Robin Hood’ tax mean for UK investors?

After being at the centre of debate for more than three years, the financial transaction tax has come back under the spotlight after shadow chancellor John McDonnell announced he would back it coming into force in the UK. The so-called Robin Hood tax would create a shift in investment behaviour as well as harm the competitive power […]

FCA logo new 2 620x430
7

FCA to consult on long-stop for advisers

The FCA is to consult on the introduction of a 15-year long-stop for financial advisers as part of the Financial Advice Market Review. In a consultation paper on the FAMR jointly published by the FCA and the Treasury today, the regulator says it will evaluate the options around implementing a long-stop. The FCA says it […]

Hargreaves calls for 30-day pension transfer deadline

Hargreaves Lansdown has called on the Government to impose a 30-day deadline on pension transfers. As part of its response to the Treasury’s consultation on barriers to pension freedoms, the firm collected evidence of transfer times. An analysis of 20,000 transfers reveals electronic transfers took an average of 8.34 days to complete while postal transfers […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. You might have written “Banks win” and left the rest of the page blank.

Leave a comment