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On 11 November 2024, HM Treasury published a response to its consultation on near-term reforms relating to the bank ring-fencing regime. It has also published a draft version of the Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2024. These amendments aim to refine the regulatory framework for ring-fenced financial institutions and remove EU-specific terms that are now irrelevant post-Brexit.
On 11 November 2024, HM Treasury published a response to its consultation on near-term reforms relating to the bank ring-fencing regime. It has also published a draft version of the Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2024.
The Order aims to establish a more efficient ring-fencing regime, following a consultation by HM Treasury in autumn 2023. This consultation received 24 written responses, with broad support for the proposed reforms despite some policy and legal concerns raised by respondents, which the government has addressed in its response.
The Order proposes changes to the Financial Services and Markets Act 2000, specifically amending the Ring-fenced Bodies and Core Activities Order 2014 and the Excluded Activities and Prohibitions Order 2014. These amendments aim to refine the regulatory framework for ring-fenced financial institutions and remove EU-specific terms that are now irrelevant post-Brexit. The Order is set to be enacted 22 days after its issuance, with the government indicating that no further guidance on these adjustments will be provided.
This legislative move follows a government announcement to implement reforms to the banking sector's ring-fencing regulations, based on recommendations from the Independent Panel on Ring-fencing and Proprietary Trading's final report in March 2022.
