THE RING-FENCING TRANSFER SCHEME (RFTS) – THE PROCESS OF TRANSFERRING AGREEMENTS
The RFTS process is effected through the High Court of England and Wales. It facilitates the transfer of large volumes of eligible agreements, between a ring-fenced entity and a non-ring-fenced entity. It is the most practical way of transferring large volumes of certain client agreements*.
Some agreements* will transfer to Lloyds Bank Corporate Markets plc individually through a process known as contract-specific novation, which requires client consent.
If your account is going to be affected by these changes, we will have contacted you to let you know what this means for you.
Following the Court approving the RFTS on 12 April 2018, Lloyds Banking Group is on track to comply with the legislation in advance of the 1 January 2019 deadline. We can confirm the transfer of agreements and related business to Lloyds Bank Corporate Markets plc via the RFTS will take place on 28 May 2018.
As part of the process, the Court considered all objections raised directly to the Court or to Lloyds Banking Group and the PRA.
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.
9 March 2018: Case management conference, for the Court to give procedural directions to ensure the Sanction Hearing on 27 March and 28 March is managed in an orderly fashion.
27 March 2018 – and 28 March 2018: Sanction Hearing for the Court to consider whether to sanction the RFTS i.e. to allow the RFTS to become effective and transfer the relevant client agreements and related business
12 April 2018 The Court approved the RFTS, following the Sanction Hearing.
28 May 2018: The date of transfer of relevant client agreements and related business to Lloyds Bank Corporate Markets plc, also known as the ‘Effective Date’.
The Judgement and Order of each Court hearing is made available, shortly after each hearing has taken place.
You can find these below.
9 March 2018, the Case management conference, for the Court to give procedural directions for the Sanction Hearing: Order
For documents related to the Court process, please see our Key documents page.
*The RFTS Court process will be used wherever possible to transfer large volumes of agreements to Lloyds Bank Corporate Markets plc. However, some agreements will transfer to Lloyds Bank Corporate Markets plc individually, in a process known as contract-specific novation, which requires individual client consent to transfer. Contract-specific novation largely applies to contracts governed by the laws of jurisdictions outside the UK, but there could be other exceptions which your Relationship Manager will speak to you about if your business is affected.