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Part VII of the Financial Services and Markets Act 2000 (FSMA) provides for a process leading to a court order to facilitate transfers of insurance or banking business. The Financial Services (Banking Reform) Act 2013 legislated for an additional process for transfer of business known as an RFTS. Its purpose is to enable firms to restructure their businesses in order to comply with the ring-fencing requirements that will apply from 1 January 2019. This policy statement focuses on the Prudential Regulation Authority’s (PRA) functions relating to this particular transfer of business.
This policy statement will be of interest to banks which will be required by FSMA, as amended by the Financial Services (Banking Reform) Act 2013, to ring-fence their activities. It will be of relevance to skilled persons commissioned to author the scheme report submitted to the court as part of the RFTS application. It may also be of interest to other financial institutions and customers who have dealings with ring-fenced bodies.
The PRA also published a webpage on skilled person applications for ring-fencing transfer schemes, which include the relevant form and guidance.
On 4 March the FCA also published its final ring-fencing transfer scheme guidance here
The implementation of ring-fencing: the PRA’s approach to ring-fencing transfer schemes – PS10/16