Committee publication · Correspondence · 2 June 2026
Correspondence from the Economic Secretary to the Treasury on ring-fencing regime, dated 18 May 2026
From: Treasury Committee
Summary
The Economic Secretary notifies the Treasury Committee that HM Treasury has published conclusions of its Ring-Fencing Regime review. The government will maintain ring-fencing to protect financial stability and depositors while implementing reforms to modernise the statutory framework, reduce duplication, and enable ring-fenced banks to offer more products. Legislation will be introduced via the forthcoming Financial Services and Markets Bill, with further reforms via secondary legislation following summer consultation.
Key findings
- Government commits to upholding the ring-fencing regime to safeguard financial stability and protect depositors
- Proposed reforms aim to modernise the statutory framework and reduce duplication in regulation
- Reforms developed in collaboration with the Bank of England to enable ring-fenced banks to provide more products and services
- Legislation will be brought forward through the Financial Services and Markets Bill
- Further reforms will be taken forward through secondary legislation following summer consultation
Tone
ProceduralTopics
Key actors
Rachel Blake MP, Dame Meg Hillier MP, HM Treasury, Bank of England, Chancellor
Notable line
“… the government will uphold the ring - fencing regime to safeguard financial stability and protect depositors, while taking forward a package of reforms to ensure it remains fit for purpose and supports growth.”
Key Quotes
“… the government will uphold the ring - fencing regime to safeguard financial stability and protect depositors, while taking forward a package of reforms to ensure it remains fit for purpose and supports growth.”
“These reforms have been developed in close collaboration with the Bank of England, and focus on modernising the statutory framework, reducing duplication and enabling ring - fenced banks to provide more products and services to support the UK economy.”
Source · parliament.uk record ↗