HMT bill could destroy UK structured deposits market
A ring fence has been proposed for five major UK banks to prevent them issuing structured products. The ban's biggest impact will be on the structured deposits, says a London lawyer
A proposal by HM Treasury to ring-fence certain banks and prevent them from distributing structured products could destroy the UK structured deposits market, according to industry participants.
The Banking Reform Bill Draft Secondary Legislation would affect those institutions with £25 billion worth of retail deposits: Barclays, HSBC, Lloyds Bank, Royal Bank of Scotland and Santander. The proposed bill states that because the returns of structured products are not simply linked to interest rates
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