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This document details the summary of responses to the consultation on banking reform draft secondary legislation that was published in July 2013.
The government published the draft Financial Services (Banking Reform) Bill on 12 October 2012, to implement the recommendations of the Independent Commission on Banking (ICB), chaired by Sir John Vickers.
The Bill was introduced to Parliament on 4 February 2013 with the aim of establishing a more resilient, stable, and competitive banking sector; to reduce the severity of a future financial crisis, and to protect taxpayers in the event of such a crisis.
The Banking Reform Bill is primarily an enabling Bill, which gives the Treasury the necessary powers to implement the policy underlying the Bill through secondary legislation. This allows the government to respond flexibly to changes in the banking system, and is appropriate given the technical nature of many of the provisions.
This consultation document invites comments on draft secondary legislation proposed under the Banking Reform Bill. The statutory instruments published for consultation set out key details of the ‘location’ of the ring-fence, including the scope of the ring-fence, the de minimis exemption from ring-fencing, the prohibitions on ring-fenced banks, and the precise conditions for exemptions.