Asset Protection Agency

Wednesday 7th December 2011 Written Statements

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Asset Protection Agency (APA) has today published two legal agreements relating to the asset protection scheme (APS). Copies of the agreements have been deposited in the Libraries of both Houses.

The first of these agreements moves the main focus of asset management governance to the riskiest assets in the APS, to ensure that the level of APA oversight is commensurate with our current view of the risk associated with the APS. The second principally introduces revised rules for overdrafts that are outside the scope of the supplemental agreement relating to operational alignment outlined in the written ministerial statement laid on 14 July 2011, Official Report, column 35WS. This resolves an agreement to agree in the original accession agreement.

These agreements are in addition to the supplemental agreement on aligning the operation of the APS with RBS’s “business as usual” finance and risk management process, as outlined in the WMS on 14 July 2011. Details of other previous supplemental agreements are contained in the WMS laid on 15 February 2011, Official Report, column 72WS .