What does the proposed change in intermediate ownership mean
RBS International Depositary Services (“RBSI DS”) is a Luxembourg based credit institution that provides depositary services to alternative investment funds in Luxembourg and ‘depositary lite’ services to non-EU funds. RBSI DS is presently wholly owned by RBS International (Holdings) Limited in Jersey. It is authorised by the European Central Bank (“ECB”) and regulated by the Commission de Surveillance du Secteur (“CSSF”).
RBS Holdings NV (“RBSH NV”) is based in the Netherlands, and will, subject to regulatory approval, become a Financial Holding Company. RBSH NV owns NatWest Markets N.V. which is NatWest Group’s business which provides rates, currencies and financing products to European corporates and financial institutions.
What is changing and why?
NatWest Group (“NWG”) is reorganising its European activities in order to comply with the latest Capital Requirements Directive which requires third country banking groups to organise all of their European subsidiaries under an intermediate parent undertaking (“IPU”). This must take place no later than 30 December 2023. Owing to the United Kingdom’s structural separation requirements – also known as ring-fencing - NWG will, subject to regulatory approval, establish two IPU’s.
This means the ownership of RBSI DS will be transferred from its present owner to RBSH NV as shown in the structure chart below. The business continues to be ultimately owned by NWG.
What happens next?
The transfer needs to be approved by the CSSF and ECB before it takes place. The process to seek their approval is underway and it is anticipated that the transfer will take place at some point from 1 April 2023 onwards.
If there are any changes to the time or date outlined above, we will provide updates on this website.