HM Treasury published the Paper on 14 June 2012. It sets out the Coalition Government’s proposals for implementation of the Final Report by the Independent Commission on Banking chaired by Sir John Vickers (the “Vickers Report”).

The objective of the reforms is for the UK to remain a successful global financial centre without asking taxpayers to bear unacceptable risks.

This is a clear intent to reduce the perceived implicit guarantees to the banking sector and all the undesirable consequences (uplifted credit ratings, etc.) that flow from the implicit guarantees.

Please see full Alert below for further information.