Ring-fencing and Bank of Scotland

Following the financial crisis, UK legislation was passed to better protect retail and business banking customers and the day-to-day banking services they rely on. 

     The new rules mean large UK banks must separate personal and business activities such as current and savings accounts, from risks in other parts of the business such as complex wholesale banking. This is called ‘ring-fencing’. Banks are taking different approaches to how they are implementing these rules and are making changes now, to complete them by 1 January 2019. 

You can find out more about ring-fencing and bank structural reform legislation, on the Financial Conduct Authority’s website and the Bank of England’s website.

Bank of Scotland is owned by Lloyds Banking Group. You can find out more about Lloyds Banking Group’s approach to ring-fencing on the Group’s website. Please check those pages for regular updates. 

What ring-fencing means for Bank of Scotland clients

The majority of our Business and Commercial Banking services are not affected, most clients will not see any changes and your bank account details will stay the same.

We are setting up a new bank so we can continue to offer more complex products and services. The new bank will be known as Lloyds Bank Corporate Markets plc1.

If your business is going to be impacted by these changes, we will contact you to let you know what this means for you.

Clients with a single Relationship Manager will continue to have one primary contact providing products and services from both Bank of Scotland and Lloyds Bank Corporate Markets.

Some of the ring-fencing changes are made by a formal Court process

The Court process is called the Ring-Fencing Transfer Scheme (RFTS). Following the Court approving the RFTS on 12 April 2018, Lloyds Banking Group is on track to comply with the legislation in advance of the 1 January 2019 deadline. You’ll find full details about the RFTS and the Court process, on the Lloyds Banking Group website. Or, call your usual contact.

We will continue to add information about ring-fencing to the Group’s website over the coming months. Please check for regular updates.

These dates are subject to change so please check this page regularly for updates.

Be extra vigilant about fraud

Although the majority of our clients will see no changes, other banks will be making changes related to ring-fencing. During this period of change in UK banking, you should be extra vigilant about fraud.

At Bank of Scotland we’ll never phone or email you asking you for your full Unique Reference Number, password, PIN or reader codes, or to transfer funds to a new sort code and account number that we provide.

Don’t assume that letters, phone calls, emails and text messages are genuine even if the person knows information about you.

Don’t feel pressured into making a decision or acting quickly. A genuine bank or organisation won’t mind waiting if you want time to think.

If you receive instructions about a change in bank details from companies you make regular payments to, you should contact them on a number you normally use to check these are genuine.

We use the latest security measures to protect your business but there are also simple solutions you can put in place to safeguard against fraud:

  • using anti-virus software
  • securing your wireless connection
  • keeping your operating systems and software up to date with the latest releases as soon as they are available.

For more information on how to stay secure online and to download our Fraud Guidance Booklet go to our security pages which include details of our online and mobile banking guarantee.

If you have accounts with other banks

If you have accounts with other banks, they will tell you if your accounts are affected by the changes they are making. If you have any questions you should contact the relevant bank directly.

1 Lloyds Bank Corporate Markets plc is the legal name for Lloyds Banking Group’s new non-ring-fenced Bank. Lloyds Bank Corporate Markets plc was authorised with restrictions on 25 July 2017, and is now registered as a Credit Institution on both the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA) websites (Reference number: 763256). Until the restrictions are removed by the FCA and the PRA, Lloyds Bank Corporate Markets plc is limited in its ability to undertake or have migrated to it any regulated financial services activities.