Call for evidence outcome

Aligning the ring-fencing and resolution regimes: Call for Evidence

• From: HM Treasury
• Published: 2 March 2023
• Last updated: 28 September 2023 — See all updates

This was published under the 2022 to 2024 Sunak Conservative government

This call for evidence has closed

Read the full outcome

Aligning the ring-fencing and resolution regimes: Call for evidence response

PDF, 146 KB, 21 pages

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Detail of outcome

The Call for Evidence on aligning the ring-fencing and resolution regimes sought views on the ongoing financial stability benefits of the ring-fencing regime and on the steps that could be taken to better align the ring-fencing regime and resolution regimes. It also invited respondents to consider a wider range of options for the longer-term future of ring-fencing.

The Call for Evidence received 14 responses providing a broad range of views which are summarised in the Response document. The government will set out publicly its policy response to the Call for Evidence and any proposals for further reform regarding the longer-term future of ring-fencing in the first half of 2024. Any proposals for reforms will be subject to consultation in the normal way.

Separately, the government has published a consultation on draft secondary legislation to implement the proposed near-term reforms to the ring-fencing regime.

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Original call for evidence

Summary

This Call for Evidence seeks views on the practicalities of aligning the ring-fencing and resolution regimes for banks and long-term options for reform.

This call for evidence ran from
9am on 2 March 2023 to 11:59pm on 7 May 2023

Call for evidence description

The independent review on ring-fencing, chaired by Sir Keith Skeoch, found that the benefits of the ring-fencing regime would likely reduce over time as the resolution regime for banks is embedded. The review concluded that the resolution regime offers a more comprehensive solution to addressing the problems of ‘too big to fail’ and recommended that the government consider the practicalities of aligning the ring-fencing and banking resolution regimes, while maintaining the UK’s financial stability.

This Call for Evidence is the first stage in the government’s response to this recommendation. It seeks views on the ongoing benefits that ring-fencing provides to financial stability not found elsewhere in the regulatory framework and on the steps that could be taken to better align the ring-fencing and resolution regimes without losing financial stability benefits. The Call for Evidence invites respondents to consider a wide range of options for the longer-term future of ring-fencing.

Documents

Aligning the ring-fencing and resolution regimes: Call for Evidence

PDF, 244 KB, 30 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 2 March 2023
Last updated 28 September 2023 + show all updates

1. 28 September 2023

   Consultation response added

2. 2 March 2023

   First published.