Ring-fencing and Halifax

Following the financial crisis, UK legislation was passed to better protect customers and the day-to-day banking services they rely on.

The rules mean large UK banks must separate personal banking services such as current and savings accounts, from risks in other parts of the business, like investment banking. This is called “ring-fencing”. Banks took different approaches to how they implemented these rules which came into effect on 1st January 2019.

You can find out more about ring-fencing and bank structural reform legislation, on the Financial Conduct Authority’s website and the Bank of England’s website.

Halifax is owned by Lloyds Banking Group. You can find out more about Lloyds Banking Group’s approach to ring-fencing on the Group’s website.

What ring-fencing means for Halifax customers

The majority of our personal banking services were not affected and most customers did not see any changes. Your bank account details will have stayed the same.

Eligible deposits continue to be protected by the Financial Services Compensation Scheme (FSCS). You can find more about the FSCS at www.fscs.org.uk.

Some of the ring-fencing changes were made by a formal Court process

The Court process is called the Ring-Fencing Transfer Scheme (RFTS). Following the Court approving the RFTS on 12th April 2018, Lloyds Banking Group complied with the legislation which came into effect on 1st January 2019. You’ll find full details about the RFTS and the Court process, on the Lloyds Banking Group website.