Linklaters has advised Lloyds Banking Group as it becomes the second major financial institution to have its application to join the Financial Conduct Authority (FCA) Prudential Regulation Authority (PRA)’s ring-fencing scheme approved.
Lloyds’ application was heard at a sanction hearing over two days in late March by Mr Justice Hildyard in the High Court’s Business and Property Court, and received approval on 13 April.
Lloyds has set a provisional date of 28 May to begin its own implementation, though this date is subject to change depending on a decision from the PRA.
Lloyds Bank turned to Linklaters partners Matthew Bland and Fionnghuala Griggs who instructed Erskine Chambers’ Martin Moore QC and Mary Stokes.
The scheme, one of a number of reforms imposed by the UK Government following the 2008 financial crash, will see banks with retail operations above a three-year average of £25bn of deposits from individuals and small to medium sized enterprises (SMEs) separate these services from the rest of their banking groups.
The five banks above this threshold – Barclays, HSBC, Lloyds, RBS and Santander – are required to implement this reform before 1 January 2019.
Slaughter and May client Barclays had already received approval for its application earlier in the year and began implementing its the scheme on 1 April.
During Barclays’ hearing, Slaughter and May head of financial institutions group and its equity capital markets practice Nilufer von Bismarck led for the firm with partner Jan Putnis supporting on regulatory matters. The Slaughters instructed Erskine Chambers’ Moore QC and Ben Shaw.
HSBC’s sanction hearing is scheduled for later this month (21 & 23 May) with Santander due on 11 June. RBS is the only banking group to be scheduled for two hearings, the second of which will be the FCA’s final hearing and set for 31 July.
Should the measures prove successful, it would safeguard individuals’ finances and assets in the event of another major financial crash.
Linklaters was approached for comment.
The legal line-up:
For the appellants, the FCA and PRA
3VB’s Rory Phillips QC, Sophie Mallinckrodt and Robert Purves, instructed by the Bank of England Prudential Authority, the FCA and the PRA
For the first respondent, Barclays
Erskine Chambers’ Martin Moore QC and Ben Shaw, instructed by Slaughter and May partners Jan Putnis and Nilufer von Bismarck
For the second respondent, HSBC
Erskine Chambers’ Martin Moore QC and Stephen Horan, instructed by Allen & Overy partners Ian Stanley and Duncan Bellamy
For the third respondent, Lloyds
Erskine Chambers’ Martin Moore QC and Mary Stokes, instructed by Linklaters partners Matthew Bland and Fionnghuala Griggs
For the fourth respondent, Santander UK
Erskine Chambers’ Martin Moore QC and Stephen Horan, instructed by Slaughter and May partners Nick Bonsall and Andrew Jolly
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