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Ring-fencing and Lloyds Bank

Following the financial crisis, UK legislation was passed to better protect customers and the day-to-day banking services they rely on. The new 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 are taking different approaches to how they are implementing these rules and are making changes now, to complete them by 1 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.

Lloyds Bank 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. Please check those pages for regular updates.

What ring-fencing means for Lloyds Bank customers

The majority of our personal banking services are not affected and most customers will not see any changes. Your bank account details will stay the same and you can carry on banking as you do now. We will write to any customers who are affected explaining what the changes mean for them.

Eligible deposits will 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 are made by a formal Court process

The Court process is called the Ring-Fencing Transfer Scheme (RFTS). 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. You’ll find full details about the RFTS and the Court process, on the Lloyds Banking Group website.

We will continue to add information about ring-fencing to the Group’s website over the coming months. Please check for regular updates.

Be extra vigilant about fraud

Although the majority of our customers will see no changes, other banks will be making changes related to ring-fencing. During this period of change in UK banking, you should be extra vigilant about fraud.

Don’t assume that letters, phone calls, emails and text messages are genuine even if the person knows information about you.

Don’t feel pressured into making a decision or acting quickly. A genuine bank or organisation won’t mind waiting if you want time to think.

If you receive instructions about a change in bank details from companies you make regular payments to, you should contact them on a number you normally use to check these are genuine.

At Lloyds Bank we'll never call you and ask you to:

  • Share any Internet Banking account details like user ID, password and memorable information.
  • Tell us your Personal Security Number (PSN) for Telephone Banking.
  • Tell us your PIN code, expiry date, CVV number (the last 3 digits of the security code on the back of your card).
  • Move money to a so-called secure account, safe or holding account.
  • Move your money or ask you to transfer funds to a new sort code and account number that we provide.

For more information on how to stay secure online, visit our security pages which include details of our online and mobile banking guarantee.

If you have accounts with other banks

If you have accounts with other banks, they will tell you if your accounts are affected by the changes they are making. If you have any questions you should contact the relevant bank directly.