Section 142H(5)

Ring-fencing rules made for the group ring-fencing purposes must include— provision restricting the power of a ring-fenced body to enter into contracts with other members of its group otherwise than on arm's length terms; provision restricting the payments that a ring-fenced body may make (by way of dividend or otherwise) to other members of its group; provision requiring the disclosure to the appropriate regulator of information relating to transactions between a ring-fenced body and other members of its group; provision requiring a ring-fenced body to ensure that its board of directors (or if there is no such board, the equivalent management body) includes to a specified extent— members who are treated by the rules as being independent of other members of the ring-fenced body's group, members who are treated by the rules as being independent of the ring-fenced body itself, and non-executive members; provision requiring a ring-fenced body to act in accordance with a remuneration policy meeting specified requirements; provision requiring a ring-fenced body to act in accordance with a human resources policy meeting specified requirements; provision requiring arrangements made by the ring-fenced body for the identification, monitoring and management of risk to meet specified requirements; such other provision as the appropriate regulator considers necessary or expedient for any of the purposes in subsection (4).

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Source: legislation.gov.uk · retrieved 2026-09-04