(This note is not part of the Order)
This Order amends the Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014 (S.I. 2014/1960) (the "Core Activities Order") and the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014 (S.I. 2014/2080) (the "Excluded Activities Order") to adjust the regulatory regime applying to ring-fenced bodies.
The Core Activities Order is amended -
(a) to allow a grace period of 12 months during which an account holder which has ceased to satisfy the definition of "relevant financial institution" can continue to bank with a non-ring-fenced bank (article 2(3)(c));
(b) to increase the amount of core deposits which may be held by a non-ring-fenced body from £25 billion to £35 billion. (article 2(5));
(c) to permit UK deposit-takers to hold trading assets without becoming a ring-fenced body, provided that the value of its trading assets is always less than 10% of the value of its tier 1 ca
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