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RBS chief says customers will pay ringfencing costs

RBS chairman Sir Philip Hampton has warned that expensive plans to ringfence its retail operations from its investment banking arm could see costs passed on to businesses and household customers.

RBS has already begun to overhaul its investment banking arm to prepare for the regulatory reforms. RBS plans to merge its global banking and markets division, which houses its investment banking activities, with its global transaction services arm, which is deemed one of the safer parts of the banks operations.

The ICB’s final report, published last September, called for the retail operations of universal banks to be ringfenced from their investment arms, a move commission chairman Sir John Vickers says takes taxpayers “off the hook” if riskier investment arms get into trouble.

The Government’s plan  to legislate on the structural reform of banks were confirmed in last week’s Queen Speech.

In an interview with The Sunday Telegraph, Hampton says the move could result in a squeeze for consumers and businesses as banks look to recoup their losses.

He says: “What the banks want to make sure of is that it’s not introduced in a way that is too expensive, because if it’s expensive then either taxpayers will suffer in our case, or customers will suffer, because we’ll have to eventually deal with our costs and reclaim some of our costs from customers.”


Independent advice and restricted for On-Line after Whitechurch deal

On-Line Partnership Group, owner of the IN Partnership network, says it will look to house both independent and restricted advisers following its acquisition of The Whitechurch Network. Last week, On-Line Partnership announced it will acquire Whitechurch in a deal that will grow its team of 570 financial and mortgage advisers to 750. In April, Whitechurch […]

Architas renames fund range to boost transparency ahead of RDR

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IMA chief Richard Saunders to step down

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