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Eu Law May Force Rbs And Lloyds To Become English

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If Scotland were to vote for independence, both Royal Bank of Scotland and Lloyds may be forced to move their registered offices or legal homes to London under European Union law, I have learned.

A senior banker has told me that his organisation is taking legal advice on the impact of the relevant directive, Council Directive 95/26/EC of 29 June 1995, because it has never been tested in the courts and there is no case law around it.

Regulators are also busy assessing its significance. Bankers and regulators both tell me it is likely to mean that RBS and Lloyds would be obliged to move their homes south of the border, if Scotland were to go it alone.

The directive says that banks must have their head offices "in the same member state as its registered office".

It also implies that those registered and head offices should be located where a group has the bulk of its activities - which, as you know, is England for Lloyds and RBS.

So the English get the turds.

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The main reason Anglo-Scots banks locate the brass plate (registered office) in Scotland is to benefits from the £millions they get for issuing their own notes.

Hence why HBOS became located in Edinburgh despite Halifax being very much larger. Lloyd's carried this tradition on when they took over the bankrupt HBOS - but it is not where their Head Office is located.

Yorkshire was made into a subsidiary of the Clydesdale for the very same reason when choosing the number of costly banking licences they held.

The main exception is RBS which was a state supported takeover of the larger NatWest (I say 'state supported' because the English banks were effectively barred for many years from picking off their smaller Scottish rivals by some very aggressive Scottish lobbying).

Indeed.. just freaking' de-merge them.

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