In response to the recommendation from a panel of independent experts led by Sir Keith Skeoch on the longer-term future of the ring-fencing regime, the government issued in March 2023 a Call for Evidence on aligning the ring-fencing and resolution regimes. This closed on 7 May 2023.
The Call for Evidence sought views on the ongoing financial stability benefits that ring-fencing provides that are not found elsewhere in the regulatory framework and the steps that could be taken to better align the ring-fencing and resolution regimes without increasing risks to financial stability. It further invited respondents to consider a wide range of options for the longer-term future of ring-fencing.
The response to the Call for Evidence has now been published. Overall, HM Treasury reported that the responses provided limited evidence and a broad, mixed, range of views on the ongoing benefits that ring-fencing provides to financial stability and the options for alignment.
This was published alongside, but separate to, HM Treasury’s consultation on near-term reforms.
The government will set out publicly its policy response to the Call for Evidence and any proposals for further reform in the first half of 2024.