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Ring-fencing and Santander UK plc, Isle of Man Branch

The UK Financial Services (Banking Reform) Act 2013 requires the largest UK banking groups, including the Santander UK group, to comply with new requirements to ring-fence their retail banking from their other banking activities by 1 January 2019. The Santander UK group has now completed the UK legal process to restructure part of its business. Under the UK ring-fencing legislation, a ring-fenced bank, such as Santander UK plc ("Santander UK"), is not allowed to have branches or subsidiaries outside of the European Economic Area. This means that Santander UK will not be allowed to have a branch in the Isle of Man from 1 January 2019.

Santander UK is therefore proposing to transfer the existing business of its Isle of Man branch from Santander UK to a new Isle of Man branch of Abbey National Treasury Services plc ("ANTS") (the "Proposal"). It is expected that this proposed transfer will take effect from 00.01 hours on 17 December 2018 (the "Effective Date"), subject to the approval of the Isle of Man Financial Services Authority (the "IOMFSA") and the approval by the Isle of Man High Court of Justice (the "Court").

As the Proposal is subject to an Isle of Man legal process it is referred to as the Scheme (the "Scheme"). It is expected that the Scheme will take effect on the Effective Date, subject to the approvals set out above.

If you have any questions, or need any clarification on the information provided, you can call our dedicated team on 08000 84 28 88 or, if calling from overseas, on +44 (0)1624 641 888 between the hours of 9am and 5pm (UK time) Monday to Friday (except Wednesday when we open slightly later at 9.30am).

Alternatively, you can send an email to transferquery@santanderinternational.co.uk. To help keep your account(s) secure, please do not send sensitive information about you or your account(s) via email.

You can also write to us at: Transfer Proposal, Santander International, PO Box 123, 19-21 Prospect Hill, Douglas, Isle of Man, IM99 1ZZ.

 

Why are you doing this?

The UK Financial Services (Banking Reform) Act 2013 requires the largest UK banking groups, including the Santander UK group, to comply with new requirements to ring-fence their retail banking from their other banking activities by 1 January 2019. The Santander UK group has now completed the UK legal process to restructure part of its business. Under the UK ring-fencing legislation, a ring-fenced bank, such as Santander UK, is not allowed to have branches or subsidiaries outside of the European Economic Area. This means that Santander UK will not be allowed to have a branch in the Isle of Man from 1 January 2019.

Santander UK is therefore intending to proceed with the Proposal.

All banking and savings accounts and mortgages held with Santander UK plc, Isle of Man branch will be transferred to a new Isle of Man branch of ANTS.

Who is Abbey National Treasury Services plc ("ANTS")?

ANTS is incorporated in England and Wales and is a wholly owned subsidiary of Santander UK. ANTS is currently regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK. In order to be compliant with UK ring-fencing legislation by 1 January 2019, Santander UK intends to transfer all of its shares in (and therefore the ownership of) ANTS to Santander UK Group Holdings plc at the end of October 2018.

What happens next?

The Proposal will follow the procedure set out in section 3A of, and Schedule 1A to, the Financial Services Act 2008, which involves the Scheme being approved by the Court.

We have submitted the application for approval of the Scheme to the Court and, as long as the Court gives its approval, and requisite regulatory approvals are obtained, the Scheme should become effective on 17 December 2018.

The hearing before the Court to request approval of the Scheme is expected to take place at 10am on 13 December 2018 at the Isle of Man High Court of Justice, Deemsters Walk, Bucks Road, Douglas, Isle of Man, IM1 3AR. If this time or the date changes we will place a notice of the new time or date on our website.

The Court will only make an order sanctioning the Scheme if it considers that, in all the circumstances of the case, it is fair for our customers and therefore appropriate to sanction the Scheme.

In preparation for the Court hearing we have engaged with the IOMFSA and will continue to do so with a view to procuring approval from the IOMFSA. An independent auditor, Ernst & Young LLP ("EY"), have also reviewed the Scheme and published its findings in the Independent Auditor’s Report.

What if I have a query with the Proposal?

If you have any queries or need clarification on any of the information provided, you can contact us using the details below and we will be happy to answer your questions.

If you are not happy with the Proposal, please let us know and we will discuss the concerns you have raised with us. You can use the following ways to contact us:

  • Call us on 08000 84 28 88 or, if calling from overseas, on +44 (0)1624 641 888 between the hours of 9am to 5pm (UK time) Monday to Friday (except Wednesday when we open slightly later at 9.30am).
  • Email us at transferquery@santanderinternational.co.uk. To help keep your account(s) secure, please do not send sensitive information about you or your account(s) via email.
  • Write to us at: Transfer Proposal, Santander International, PO Box 123, 19-21 Prospect Hill, Douglas, Isle of Man, IM99 1ZZ.

What if I believe I will be adversely affected by the Proposal?

If you believe you will be adversely affected by the Proposal you can choose to have your objection raised at the Court hearing. You can either appear at the Court hearing in person or be represented by an advocate, at your own cost. If you would like to appear at the hearing, please register your intention by writing to us at least five working days before the Court hearing to:

Transfer Proposal, Santander International, PO Box 123, 19-21 Prospect Hill, Douglas, Isle of Man, IM99 1ZZ.

Your letter should state your objection and why you think you will be adversely affected by the Scheme.

You can also write to us with your reasons for objecting to the Scheme even if you do not intend to appear at the hearing. Again, please send your letter so that we receive it at least five working days before the Court hearing. Your objection and how it has been handled will be drawn to the attention of the Court.

From the Effective Date (17 December 2018) your account(s) and/or mortgage(s) will transfer from Santander UK to ANTS. The Scheme will not affect how your account(s) and/or mortgage(s) work. The same products (banking and savings accounts and mortgages) and services (telephone banking, online banking and foreign exchange service) which are currently offered and serviced by the Isle of Man branch of Santander UK will continue to be provided by the Isle of Man branch of ANTS.

Customers of Santander UK plc, Isle of Man branch will continue to be serviced as they are today, but as customers of a new Isle of Man branch of ANTS.

The Isle of Man branch of ANTS will continue to trade under the brand of Santander International.

Changes to documents

After the Effective Date, any new documentation will be updated to reflect that ANTS will be the legal entity providing the account. Any reference to Santander UK in existing agreements, statements or other communications about your account(s) and/or mortgage(s) should be taken to mean ANTS.

Transitional period for amending Gold Visa debit cards

The wording on the reverse of your Gold Visa debit card currently states `This card is issued by Santander UK plc.’ After the Effective Date, you will not be issued with a new Gold Visa debit card until it reaches the expiry date, or there is any other reason for its replacement such as it being lost or stolen. Therefore, after the Effective Date, any reference on the card to Santander UK plc means ANTS.

Accounts managed and held in the Isle of Man

Following the Effective Date, your account(s), and any new account(s) opened, will be held, managed and serviced by the Isle of Man branch of ANTS. The Isle of Man branch will be licensed and regulated by the IOMFSA. Your accounts will continue to be held in the Isle of Man. The term used to describe where your account is held is often referred to as ‘situs’, i.e. your account(s) will continue to be Isle of Man situs after the Effective Date.

From the Effective Date, the location of your accounts will remain in the Isle of Man and interest paid to you will remain Isle of Man sourced income.

ANTS will be a qualifying lender for any tax relief on payment of Manx income tax on mortgage loans.

Marketing preferences

ANTS will continue to respect the marketing preferences you have already expressed before the Effective Date. Your marketing preferences will not change as a result of the Proposal.

Personal data

At the Effective Date the information which Santander UK holds about you and your account(s) will transfer to ANTS. From that date, ANTS, acting through its Isle of Man branch, will become the controller of your data and it will use your data in accordance with applicable data protection legislation.

Depositor protection

There will be no change to depositor protection under the Isle of Man Depositors’ Compensation Scheme (the "DCS") as a result of the Scheme. The Isle of Man branch of Santander UK is a participant in the DCS and, from the Effective Date, the Isle of Man branch of ANTS will be a participant in the DCS.

Deposits held in the Isle of Man are NOT covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000 or by the Jersey Bank Depositors Compensation Scheme.

Credit rating

It is anticipated that ANTS will retain a separate credit rating after the implementation of the Santander UK group’s ring-fencing plans.

Rights of Set Off

A right of set off is the right of a bank, in certain circumstances, to use money you have deposited with it (in a Gold Bank Account or Call Account, for example) against a debt you also have with that bank (such as a loan or mortgage) that becomes repayable.

Following a restricted period of three months after the Effective Date, or three months after the maturity of a credit balance held by you for a fixed term or a Fixed Deposit Contract which commenced before the Effective Date, ANTS will be able to exercise rights of set off for your account(s) transferred from the Isle of Man branch of Santander UK.

Changes to your terms and conditions

Subject to approval of the Proposal, and in accordance with your terms and conditions (clause A 11.4), we are giving you prior notice that the following changes will be made to your terms and conditions. The changes outlined below will apply on the Effective Date. If the Scheme is not approved your existing terms and conditions will still apply.

  1. Changes to the introduction sections in General Terms and Conditions, Standard Mortgage Terms and Conditions and Supplementary Terms and Conditions for Non-Personal Accounts
    ANTS, acting through its Isle of Man and Jersey branches, will be the legal entity providing the account and any reference to “Santander UK plc”, “we”, “us” and “our” in your existing account documentation should be read as references to ANTS as the legal entity which provides the account, instead of Santander UK.
  2. Changes to General Terms and Conditions - Section A8.7 Data Protection and Disclosure Information
    From the Effective Date the following clause will be amended to:
    A8.7 ANTS, through the Relevant Branch, is the controller of Your data and will use Your data in accordance with the data protection laws in the Relevant Jurisdiction.

Future changes

We are currently considering whether, after the transfer of the existing business of Santander UK’s Isle of Man branch to the new Isle of Man branch of ANTS, ANTS could effect a further transfer (whether to third parties or other members of the Banco Santander group) of the whole or part of this business. If this were to occur, we would notify our customers again.

Contact us

If there is anything you want to ask please:

  • Call us on 08000 84 28 88 or, if calling from overseas, on +44 (0)1624 641 888 between the hours of 9am to 5pm (UK time) Monday to Friday (except Wednesday when we open slightly later at 9.30am).
  • Email us at: transferquery@santanderinternational.co.uk. To help keep your account(s) secure, please do not send sensitive information about you or your account(s) via email.
  • Write to us at: Transfer Proposal, Santander International, PO Box 123, 19-21 Prospect Hill, Douglas, Isle of Man, IM99 1ZZ.
  • Come and see us at the above address.

Scheme documents

You can also view, download or print the following Scheme documents:

A copy of the Scheme document, the Independent Auditor’s Report, the document summarising the Scheme document and Independent Auditor’s Report and the application to the Court to approve the Scheme are available, free of charge, by calling or writing to us (details above). Alternatively, you can come and collect all of the documents in person by visiting us at the address above.

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