The UK government, which has endorsed the idea of ring-fencing retail, deposit-taking banking functions from activities such as trading and investment banking, says high net worth individuals will not be forced to put their money into such protected bank segments
The UK government, which has endorsed the idea of ring-fencing retail, deposit-taking banking functions from activities such as trading and investment banking, says high net worth individuals will not be forced to put their money into such protected bank segments.
Proposals, contained in a white paper, also raised questions about what happens to Swiss banks, as their country of origin is outside the European Economic Area. The EEA status is important because, to avoid issues with cross-border banks, the UK government proposes that ring-fenced banks should not carry out any banking activities through non-EEA subsidiaries or branches.
Last week, finance minister George Osborne said the government will introduce legislation as soon as possible to push ahead with the ring-fencing idea, designed to ward off the risk of future massive taxpayer bailouts of banks.
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