UK: the ICB's final report - ring-fencing of retail banking

The Independent Commission on Banking delivered its final report this morning - see here (pdf) - in which it sets out recommendations for the ring-fencing of retail banking operations. The recommendations, which the Government has welcomed, will bring result in dramatic changes to the structure of UK banks. The ring-fencing proposed by the Commission is to be achieved through the creation of UK retail subsidiaries which would be legally, economically and operationally separate from the rest of the banking groups to which they belong. These subsidiaries, the Commission states, should have different cultures and distinct governance arrangements, including a board with, normally, a majority of independent non-executive directors including the chairman. The subsidiary would also be expected to make disclosures and reports as if it were an independently listed company.