THE RING-FENCING TRANSFER SCHEME (RFTS) – THE PROCESS OF TRANSFERRING CONTRACTS
The RFTS is a Court process set out in the ring-fencing legislation that facilitates the transfer of large volumes of eligible contracts, between a ring-fenced entity and a non-ring-fenced entity, in order to enable banks to comply with ring-fencing requirements. It is the most practical way of transferring certain contracts.
Some contracts* will be novated individually through a process known as contract-specific novation.
If your account is going to be affected by these changes, we will contact you to let you know what this means for you.
The transfer of contracts to Lloyds Bank Corporate Markets plc via the RFTS requires Court approval. The Court will only sanction the RFTS if it is satisfied that it is appropriate, fair to clients and meet the legal requirements. The Court will consider formal written objections to the RFTS raised by persons who feel they could be adversely affected.
You’ll find full details of how to do this, on this page, from mid-December 2017.
Timetable for the Court process:
25 September 2017: Interim hearing, for preliminary directions on some of the communications we need to make for the RFTS
4 December 2017: Directions hearing to seek the Court’s approval for our application for the Court process to begin, including our overall plan for the communications we need to make for the RFTS
27 March 2018: Sanction hearing. At the sanction hearing the Court will consider and, if it sees fit, approve the RFTS.
These dates are subject to change so please check this page regularly for updates.
The judgement and order of each Court hearing is made available, shortly after each hearing has taken place.
You can find these below.
25 September 2017, the Lloyds Bank plc and Bank of Scotland plc Interim Hearing link will be published as soon as it's available.
*The RFTS Court process will be used wherever possible to transfer large volumes of contracts to Lloyds Bank Corporate Markets plc. Some contracts can’t be transferred with certainty via the RFTS and will be moved on a case by case basis in a process known as contract-specific novation, subject to obtaining individual client consent. Contract-specific novation largely applies to contracts governed by the laws of jurisdictions outside the UK, but there could be other exceptions which we will speak to you about if your business is affected.