2

The definition and purpose of ring-fencing transfer schemes (RFTS)

2.1

The Act created an additional form of transfer of business known as a RFTS. It is designed to enable banking groups that will include an RFB to restructure their businesses to comply with the ring-fencing requirements.

2.2

The PRA expects the RFTS process to facilitate a variety of types of transfers. For example, some transfers may be for core activities to be moved across to a RFB. Others may be transfers of ‘excluded’ activities from RFBs into other authorised entities or transfers to non-authorised entities.