The High Court will hear objections to Barclays’ decision to back its pension scheme with its non-ringfenced investment bank, reports the Financial Times.
After a two-day hearing this month, a senior judge will rule on whether to sanction the ringfencing of day-to-day banking services.
Regulations brought in by the UK government following the 2008 banking crisis stipulate that by 2019, banks must have ringfenced their retail banking outfits from their parent companies.
Barclays intends to move its UK retail and business banking customers to its new ringfenced retail bank in April 2018. As things stand, its £35bn defined benefit scheme will be sponsored by its non-ringfenced investment bank.
Barclays has thus far received 88 complaints from scheme members over this proposal. The trustees have agreed to the bank’s plan for the scheme.
