Slaughter and May is advising HM Treasury on an alternative remedies package to resolve RBS’s final State aid commitment

Slaughter and May is advising HM Treasury on legal aspects of an alternative remedies package to replace RBS’s commitment to divest its UK retail and SME banking operations known as Williams & Glyn. The c.£800 million alternative remedies package has been agreed in principle with the European Commission and is designed to promote competition in the market for banking services to SMEs in the UK. 

The package will be administered by an independent body and consists of: (i) a £425 million Capability and Innovation Fund that will grant funding to eligible challenger banks and other financial technology companies; and (ii) £275 million of funding for eligible challenger banks to use to incentivise SMEs to switch their accounts and loans from Williams & Glyn (and £75m set aside by RBS to cover customers’ switching costs).