UK Prudential Regulation Authority Finalizes Reporting And Prudential Requirements For Ring-Fenced Banks

On February 1, 2017, the UK Prudential Regulation Authority published a Policy Statement, final rules and updates on several Supervisory Statements on the reporting, prudential and recovery and resolution requirements to implement the ring-fencing requirements for banks. The PRA's policy and final rules are relevant to all firms that are required to ringfence their core banking activities before the implementation date of January 1, 2019. These firms are, broadly speaking, those with at least £25 billion of "core" deposits (defined as deposits from individuals and small businesses) and those that expect to exceed the threshold by January 1, 2019. UK banking groups that have more than £25 billion of core deposits will need to ring-fence the entity or entities that accept core deposits—called ring-fenced bodies—by transferring other business lines to different legal vehicles or undertaking other business separations.