UK Ring-Fencing Proposal Could Allow Derivative Sales

Law360, New York (October 12, 2012, 2:07 PM EDT) -- The U.K. government on Friday presented a draft bill that would implement its proposals to "ring-fence” retail banks from investment banking units of the same holding company, with the bill opening up the possibility of retail banks providing some derivative products to customers.

The draft bill, submitted to the U.K. Parliament's Commission on Banking Standards, lays out how the government will set up a ring fence of sorts around retail, consumer banking targeted at individual consumers and small businesses — separating them from investment banking activities....
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