Structured deposits face uncertain future under UK ring-fence plans

The UK’s Banking Reform Bill proposes ring-fencing the five biggest issuers of structured products and prohibiting them from offering deposits. But lawyers say it could make structured deposits’ route to market more convoluted and harder to regulate. Vita Millers reports

Structured deposits polarise opinion. To many in the industry they are virtually no different to regular bank deposits and should be treated as such by regulators, while others say they are overly complicated investments that use higher rates to attract otherwise cautious investors. It is the latter view that HM Treasury appears to be adopting in its proposals for a ring fence prohibiting the retail banking arms of systemically important banks from issuing structured products. But market