Regulatory Alerts2026-05-18
PRA Announces Ring-Fence Change to Reduce Costs
The Prudential Regulation Authority has published the official list of ring-fenced bodies for five major UK banking groups as of 22 April 2026. This regulatory update specifies which subsidiaries within Barclays, HSBC, Lloyds Banking Group, NatWest Group, and Santander UK must operate under ring-fencing rules pursuant to section 142A of the Financial Services and Markets Act 2000. The designated structural separation aims to protect core retail banking functions while reducing operational costs for affected financial institutions.
Banks in scope of ring-fencing as of 22 April 2026 As of 22 April 2026, the following UK banking groups included entities which were ring-fenced bodies (RFBs) pursuant to section 142A of the Financial Services and Markets Act 2000 (FSMA) (as amended): Barclays, HSBC, Lloyds Banking Group, NatWest Group, and Santander UK. The table below provides the list of individual RFBs within each group as of 22 April 2026: Banking Group RFBs Barclays Barclays Bank UK PLC HSBC HSBC UK Bank Plc MARKS AND SPENCER FINANCIAL SERVICES PLC Lloyds Banking Group Bank of Scotland plc Lloyds Bank PLC NatWest Group Coutts & Company NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY THE ROYAL BANK OF SCOTLAND PUBLIC LIMITED COMPANY Santander UK Cater Allen Limited Santander UK Plc