RBS Ring-Fencing Transfer Scheme Effective; Plans To Start Second Program

(RTTNews) - Royal Bank of Scotland Group plc (RBS, RBS.L) announced Monday that its Ring-Fencing Transfer Scheme or RFTS has been implemented and is effective today.

In May 2018, RBS Group intends to commence, in the Court of Session in Scotland, a second RFTS to transfer certain customer derivatives from NatWest Bank to NatWest Markets Plc. If approved by the Court that second RFTS is expected to be implemented in August 2018.

It was on March 22 that RBS announced that its proposed Scheme under Part VII of the Financial Services and Markets Act 2000 had been sanctioned by the Court of Session in Scotland.

The company further said Adam & Company PLC, former Adam & Company has been renamed "The Royal Bank of Scotland plc", and The Royal Bank of Scotland plc, former RBS plc", has been renamed "NatWest Markets Plc".

Effective today, Royal Bank of Scotland plc, former Adam & Company, is authorised to issue bank notes in Scotland. The Royal Bank of Scotland plc now supersedes the prior issuer former RBS plc in respect of banknotes in circulation and will issue banknotes in Scotland in its own name.

In July 2018, RBS plans to restructure the NatWest Markets Plc, former RBS plc, capital structure via a Court approved capital reduction. As part of this restructure, the shares in NatWest Holdings Limited, which owns the ring-fenced sub-group, will be distributed to RBSG. This will separate the ring-fenced sub-group from the non-ring-fenced entities, as required by the ring-fencing legislation.