Keith Skeoch has been appointed by HM Treasury as chair of the
independent review panel with responsibility to oversee and deliver
two statutory reviews on the operation of ring-fencing legislation
and proprietary trading.
The ring-fencing regime is a key domestic regulatory reform,
introduced in the aftermath of the 2008 financial crisis,
following recommendations from the Independent Commission on
Banking in 2011, to strengthen the resilience of the UK banking
sector. The regime, which came into force in January 2019,
separates core retail banking services from investment banking
activities, particularly to protect depositors from risks arising
elsewhere in the banks and in the financial system.
The Financial Services (Banking Reform) Act (FSBRA) 2013 requires
the Treasury to appoint an independent panel to review the
operation of the legislation relating to ring-fencing.
FSBRA also requires the Treasury to appoint an independent panel
to review banks’ proprietary trading activities. Proprietary
trading involves activity where a bank trades in financial
instruments or commodities as principal, requiring the use of the
bank’s own capital and/ or liquidity resources.
The independent review panel is required to submit its reports to
the Treasury, including any recommendations.
The Treasury will announce the appointments of the remaining
members of the panel and publish the terms of reference for the
reviews in due course.
