Santander International customers

FAQs

What ring-fencing means for you

Under the UK ring-fencing legislation, a ring-fenced bank, such as Santander UK, is not allowed to have branches or subsidiaries outside of the European Economic Area, which includes Jersey and the Isle of Man.

Santander UK plc has now completed the regulatory approval and court processes in Jersey and the Isle of Man to help ensure that it is compliant with the ring-fencing legislation ahead of 1 January 2019.

On 11 December 2018, the Royal Court of Jersey approved the transfer of the business of the Jersey branch of Santander UK plc to a new Jersey branch of Abbey National Treasury Services plc by way of a court-sanctioned transfer scheme under Jersey law (the 'Jersey Scheme').

On 13 December 2018, the Isle of Man High Court of Justice approved the transfer of the business of the Isle of Man branch of Santander UK plc to a new Isle of Man branch of Abbey National Treasury Services plc by way of a court-sanctioned transfer scheme under Isle of Man law (the 'Isle of Man Scheme').

The transfers of business under the Jersey Scheme and the Isle of Man Scheme were effected at 00.01 on 17 December 2018.

For more information please visit the Santander International website.

FAQs

Is ring-fencing a legal requirement?

Ring-fencing is a legal requirement for certain UK banks with effect from 1 January 2019. Any banking group that has more than £25 billion of UK deposits from individuals or small businesses will be affected by ring-fencing. In general, within these groups any UK bank that holds deposits from personal or small business customers will be a ring-fenced bank.

Have all banks subject to ring-fencing had to adopt the same approach?

No. There are different ways for banks to meet the requirements of ring-fencing legislation, so banks subject to ring-fencing have adopted different approaches depending on their structures, strategy and customer base. This means customers of different banks may be affected in different ways.

Which regulators have ensured Santander UK will comply with ring-fencing requirements?

Our plans for ring-fencing have been reviewed by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The PRA is the lead regulator responsible for identifying which banks are within the scope of the ring-fencing legislation and for supervising banks’ implementation of the prudential rules. The FCA is working with the PRA, the Bank of England, HM Treasury and the banks that are subject to ring-fencing from the commencement of the regime to support the banks’ implementation of ring-fencing efficiently and on time.

Santander is a Spanish bank, so why does it need to adhere to UK banking laws?

Banco Santander, S.A. is a global banking group and each of its subsidiaries, including Santander UK, operates as an independently capitalised stand-alone business. Santander UK plc, Cater Allen Limited and Abbey National Treasury Services plc are each incorporated in the UK, are subject to UK legislation and are authorised by the UK Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Banco Santander, S.A. is authorised and supervised by the European Central Bank and by the Bank of Spain, and its London branch is also subject to limited regulation in the United Kingdom by the FCA and the PRA.

What is a ring-fencing transfer scheme?

A ring-fencing transfer scheme is a legal process that facilitates transfers of business to create a ring-fenced bank.

Part VII of the Financial Services and Markets Act 2000, provides for a process leading to a court order to facilitate transfers of insurance or banking business. The Financial Services (Banking Reform) Act 2013 added a process for transfers of business in connection with the creation of a ring-fenced bank known as a ring-fencing transfer scheme.

The purpose of a ring-fencing transfer scheme is to enable banks to restructure their businesses in order to comply with the ring-fencing requirements that apply from 1 January 2019.

What was the purpose of Santander’s ring-fencing transfer scheme?

The purpose of our ring-fencing transfer scheme was to enable us to restructure certain parts of our business to comply with the ring-fencing requirements that apply from 1 January 2019.

Under the Scheme:

  • Certain corporate and wholesale markets business have been transferred between Santander UK plc, Abbey National Treasury Services plc and Banco Santander, S.A. London branch.
  • With effect from 1 January 2019, all liabilities of Santander UK plc and Abbey National Treasury Services plc under the existing cross-guarantees issued by each of them in respect of the liabilities of the other have been released and those cross-guarantees unwound.
  • Certain other changes have been made to the terms and conditions of some contracts.