The UK Government has passed legislation which requires banks to separate their retail and investment banking activities by 1 January 2019. To comply with this legislation, the RBS Group (RBS) needs to undertake a reorganisation of its group legal entity structure and business model.
Following the reorganisation, RBS will be split into ring-fenced and non ring-fenced entities. During December 2016 we changed our brand from RBS Corporate & Institutional Banking (CIB) to ‘NatWest Markets’. The majority of the existing NatWest Markets business will be outside the ring-fence.
NatWest Markets is now the marketing and trading name under which we operate our financing, risk management and trading solutions businesses within The Royal Bank of Scotland plc (RBS plc). During 2018, activities which must only be provided by a ring-fenced entity will be moved out of RBS plc together with certain activities that may be provided within a ring-fenced or non-ring-fenced entity, but we believe are best provided from inside the ring-fence. Once this is complete we expect that the legal entity RBS plc will be renamed to NatWest Markets Plc in readiness to operate as a non ring-fenced bank once the rules come into effect on 1 January 2019.
NatWest Markets is targeting an investment grade senior unsecured debt rating, although there are numerous factors that could adversely affect this rating.
What this means for you
For now very little is changing. You’ll continue to perform business with NatWest Markets in the normal way. Any transactions that you have with NatWest Markets Plc as at 1 January 2019 will be with the non ring-fenced bank.
We will send you further details in due course, but in the meantime, if you would like to talk to us about this or anything else, please contact your usual point of contact at the bank; alternatively you can email us at email@example.com. In addition, please refer to the following site which will contain the most up to date details on our ring-fencing plans www.natwestmarkets.com.