TIDMRBS
RNS Number : 7189Q
Royal Bank of Scotland Group PLC
23 June 2020
Royal Bank of Scotland Group plc
23 June 2020
The Royal Bank of Scotland Group plc -- Changes to the
Alternative Remedies Package
The Royal Bank of Scotland Group plc (" RBS") welcomes today's
announcement from Banking Competition Remedies Limited(1) ("BCR")
in relation to changes to the Incentivised Switching Scheme
("ISS"), which forms part of the Alternative Remedies Package(2)
.
As a result of the on-going COVID-19 pandemic, fewer customers
have been switching under ISS and these changes are being announced
by BCR to preserve the momentum and aims of the ISS. Bringing
forward these changes now, which might otherwise have been
implemented at a later date, provides RBS with greater
certainty.
RBS has entered into an amendment to the 25 April 2018 Framework
and State Aid Deed (the "Deed") with HM Treasury and BCR, which
agreed the following in relation to the duration of the ISS and the
scope of customers eligible for the ISS:
-- 200,000 additional Royal Bank of Scotland plc and National
Westminster Bank plc Business Banking customers with turnover of up
to GBP1m will have the opportunity to participate from 25 August
2020; and
-- the duration of the period under the ISS for customers to
apply to switch their account will be extended from 25 August 2020
until the end of February 2021 and customers will have until the
end of June 2021 to complete the switch.(3)
These amendments to the ISS do not change the total number of
customers targeted to switch under the scheme. As a result, there
is no material change anticipated to the current financial outlook
for RBS. The existing requirement on RBS to make a potential
further contribution to the ISS, should customer switching be
insufficient under the Deed, remains capped at GBP50m.
(1) BCR Ltd is an independent body established to facilitate and
oversee the delivery of the Framework and State Aid Deed.
(2) The Alternative Remedies Package was announced on 18
September 2017
https://otp.tools.investis.com/clients/uk/rbs1/rns1/regulatory-story.aspx?cid=365&newsid=926171
and entry into the Deed (as defined above) was announced on 2 May
2018
https://otp.tools.investis.com/clients/uk/rbs1/rns1/regulatory-story.aspx?cid=365&newsid=1005313
(3) It remains the case that the ISS will terminate at the point
the GBP225m fund for business current account switching has been
distributed by BCR, which may be earlier than the dates above.
For further information, please contact:
Investor Relations
Alexander Holcroft
Head of Investor Relations
+44 (0) 207 672 1758
RBS Media Relations
+44 (0) 131 523 4205
Forward looking statements
This document contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements that include, without limitation,
the words 'expect', 'estimate', 'project', 'anticipate', 'commit',
'believe', 'should', 'intend', 'plan', 'could', 'probability',
'risk', 'Value-at-Risk (VaR)', 'target', 'goal', 'objective',
'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and
similar expressions or variations on these expressions. These
statements concern or may affect future matters, such as RBS's
future economic results, business plans and strategies. In
particular, this document may include forward-looking statements
relating to RBS in respect of, but not limited to: its regulatory
capital position and related requirements, its financial position,
profitability and financial performance (including financial,
capital and operational targets), its access to adequate sources of
liquidity and funding, increasing competition from new incumbents
and disruptive technologies, its exposure to third party risks, its
ongoing compliance with the UK ring-fencing regime and ensuring
operational continuity in resolution, its impairment losses and
credit exposures under certain specified scenarios, substantial
regulation and oversight, ongoing legal, regulatory and
governmental actions and investigations, the transition of LIBOR
and IBOR rates to alternative risk free rates and RBS's exposure to
economic and political risks (including with respect to terms
surrounding Brexit and climate change), operational risk, conduct
risk, cyber and IT risk, key person risk and credit rating risk.
Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statements. Factors
that could cause or contribute to differences in current
expectations include, but are not limited to, the final number of
PPI claims and their amounts, legislative, political, fiscal and
regulatory developments, accounting standards, competitive
conditions, technological developments, interest and exchange rate
fluctuations, general economic and political conditions and the
uncertainty surrounding the Covid-19 pandemic and its impact on
RBS. These and other factors, risks and uncertainties that may
impact any forward-looking statement or RBS's actual results are
discussed in RBS's UK 2019 Annual Report and Accounts (ARA) , its
Q1 2020 Interim Management Statement, and materials filed with, or
furnished to, the US Securities and Exchange Commission, including,
but not limited to, RBS's most recent Annual Report on Form 20-F
and Reports on Form 6-K. The forward-looking statements contained
in this document speak only as of the date of this document and RBS
does not assume or undertake any obligation or responsibility to
update any of the forward-looking statements contained in this
document, whether as a result of new information, future events or
otherwise, except to the extent legally required.
Legal Entity Identifier
The Royal Bank of Scotland 2138005O9XJIJN4JPN90
Group plc
The Royal Bank of Scotland 549300WHU4EIHRP28H10
plc
National Westminster Bank Plc 213800IBT39XQ9C4CP71
NatWest Holdings Limited 213800GDQMMREYFLQ454
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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