Banks to ditch Scotland if it votes 'Yes'
Directors from RBS and Lloyds are not happy at the prospect of Scotland voting 'Yes' to independence and are mithering the government to introduce legislation that would help the relocation of their legal headquarters. They want politicians to usher in a new Act of Parliament so that banks can avoid the need for a lengthy legal process handled by the courts when they want to flee Scotland, screaming in panic.
Bosses from both companies are worried that the relocation process will be a faff, because of their banking licences and legal base. They need to go through a thing called a Part 7 Transfer under the Financial Services and Markets Act, and they think it would be far too time-consuming.
They've had months and months to sort this out. It all reeks of doing your homework on the bus to school and moaning about it to everyone else, but what else would you expect from this shower?
Basically, the banks are concerned about the currency that an independent Scotland would adopt and Lloyds and RBS are fretting over credit ratings agencies downgrading them if they keep their headquarters in Scotland. Both banks have made plans to move their legal bases to London, and Lloyds have a slight edge because they've had operations in England for over a century.
RBS said: "There are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the Bank’s credit ratings, and the fiscal, monetary, legal and regulatory landscape to which it is subject. For this reason, RBS has undertaken contingency planning for the possible business implications of a ‘Yes’ vote."
"As part of such contingency planning, RBS believes that it would be necessary to re-domicile the Bank’s holding company and its primary rated operating entity (The Royal Bank of Scotland plc) to England.”
RBS added that this referendum was "a matter for the Scottish people" and that they'd been based in Scotland since 1727: "RBS intends to retain a significant level of its operations and employment in Scotland to support its customers there and the activities of the whole Bank."
Lloyds said: "While the scale of potential change is currently unclear, we have contingency plans in place which include the establishment of new legal entities in England. This is a legal procedure and there would be no immediate changes or issues which could affect our business or our customers."