Under section 214A of the Banking Act 2009 the Bank of England (the Bank) must provide its consent for a statutory instrument that transfers the authorisation to issue commercial banknotes between legal entities in the same banking group. This is because the Bank has responsibility for regulating the treatment, holding and issuance of commercial banknotes in Scotland and Northern Ireland.
This letter provides the Bank’s consent for the Royal Bank of Scotland plc to transfer authorisation to issue commercial banknotes in Scotland to Adam & Company plc. This change is required in order to implement the government’s ring-fencing reform, whereby the largest UK banks must separate core retail banking from investment banking by 1 January 2019. The letter is published here at the same time that the government has laid the relevant statutory instrument to make this change.