Ring-fencing: To ease or not to ease regulation, that is the question

The UK’s ring-fencing laws have recently come into question with two sides forming, one that insists regulation should be eased and one that insists it should be maintained, the former being the banking and finance industry, the latter being regulators. This came to a head in the early part of 2021 due to the Financial Services (Banking Reform) Act 2013 requiring an independent review of the legislation. The independent panel, put together by the UK Treasury, should report back within one year with recommendations. This article will consider the following: (1) What is ring-fencing? Considering the global financial crisis and relevant legislation; (2) The good and the bad. Considering the strengths and weaknesses of ring-fencing; (3) Where does this leave ring-fencing and what might the independent panel recommend? A conclusion will be made as to whether regulation should be eased, as the industry has voiced, or whether regulation should remain, as the regulators voice.