Ring Fencing Risk - Regulatory and professional discipline
The FCA’s approach to the implementation of ring-fencing and ring-fencing transfer schemes: The FCA will be assessing the potential risks posed by the implementation of ring-fencing. In addition, the FCA will consult with the Prudential Regulation Authority (PRA) in relation to transfers of business to achieve ring-fencing purposes and the FCA will assess the potential risks posed by the proposed schemes to its objectives. The FCA has published guidance which sets out its proposed approach to the implementation of ring-fencing and ring-fencing transfer schemes (RFTSs). It also clarifies its approach to applications for authorisations or other regulatory transactions submitted by firms for the implementation of ring-fencing. The FCA notes that its guidance should be read in conjunction with the PRA’s consultation paper CP33/15 setting out the PRA’s proposed approach to RFTSs.