VIRGIN MONEY UK PLC
(Company or Virgin Money UK)
LEI: 213800ZK9VGCYYR6O495
6 August 2024
VIRGIN MONEY UK PLC RESOLVABILITY ASSESSMENT
The Company has today published its Resolvability Assessment in line with Prudential Regulation Authority (“PRA”) guidance. The Bank of England (“BoE”) has also published its assessment of the resolvability of the Company alongside the largest, systemically important firms in line with the Resolvability Assessment Framework (“RAF”).
The Company has taken robust steps to prepare for the unlikely event of resolution and has met the resolution expectations of the BoE Resolvability Assessment. The assessment confirms that the BoE has not identified any shortcomings, deficiencies, or substantive impediments to the Company achieving the resolvability outcomes described in the RAF Statement of Policy ‘The Bank of England’s approach to assessing resolvability’ (“RAF SoP”) but has identified one area where further enhancement is required.
Following the assessment and BoE feedback, the Company is working to deliver further enhancements as it continues to develop and improve its resolvability capabilities. This work will further increase its preparedness, and the Company will continue to work with the BoE in its efforts to further enhance the stability and soundness of the UK financial system.
The BoE have confirmed that they expect Virgin Money UK to publish its 2024 Public Disclosure, notwithstanding the proposed acquisition of the Company by Nationwide Building Society.
Further details
Details of the BoE’s approach to assessing UK financial firms’ resolvability can be found on the BoE’s website at https://www.bankofengland.co.uk/financial-stability/resolution/resolvability-assessment-framework
Details of the BoE’s assessment of the Company’s resolvability can be found on the BoE’s website at https://www.bankofengland.co.uk/financial-stability/resolution/resolvability-assessment-framework/resovability-assessment-of-major-uk-banks-2024
Details of the Company’s report of its resolvability assessment can be found on the Company’s website at https://www.virginmoneyukplc.com/investor-relations/results-and-reporting/events-and-presentations/#other-investor-events
Announcement authorised for release by Lorna McMillan, Group Company Secretary.
For further information, please contact:
Important Information
This document contains information about the activity which Virgin Money UK PLC and its subsidiaries including Clydesdale Bank PLC (which together comprise the “Group”) has undertaken to prepare it for resolution should it experience severe financial distress (our “Resolution Preparation”). Our Resolution Preparation continues to evolve along with the Group’s business, market conditions, macroeconomic factors, and the rules, guidance, policies, practices and powers of the Bank of England (“BoE”), the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”), and therefore is subject to change. Our Resolution Preparation and the information in this document, the documents referred to in it and any other written or oral material discussed or distributed in connection with our Resolution Preparation (the “Information”) are based on assumptions, expectations, valuations, targets, estimates, forecasts and projections about future events, which are subject to risks, uncertainties and assumptions about the Group and its securities, investments, and the environment in which it operates, including, among other things, macroeconomic and/or geopolitical factors, changes to law and/or the policies, practices and powers of the BoE, the FCA, the PRA and/or other regulatory and governmental bodies, and changes in the liquidity, capital, funding and/or asset position and/or credit ratings of the Group. Such events may not occur, which could have an adverse impact on our Resolution Preparation. The Group and their respective directors, officers, employees, agents, advisers and affiliates (each a “VMUK Party”) do not give any assurance as to the effectiveness of our Resolution Preparation, that our Resolution Preparation will not change, or that the projections, estimates, returns or results on which our Resolution Preparation and the Information is based will be realised and not materially lower than expected.
The Information is prepared on the basis of the Group’s current structure, operating on a standalone basis and does not reflect the potential acquisition of VMUK by Nationwide Building Society which remains conditional until completion, details of which are contained in the scheme document dated 22 April 2024 and announcement released on 22 May 2024.
The Information has been prepared for information purposes only. It is not a marketing communication and should not be regarded as an investment or research recommendation, or any form of investment or business advice. It does not constitute or form part of, and should not be construed as, any public offer, offer to sell, or solicitation of any offer, to buy any securities or financial instruments under any legislation. You should not place reliance on the Information when taking any business, legal or other types of decisions/ actions. No undertaking to update or revise the Information is given.
No VMUK Party will be liable for any loss or damages incurred through the reliance on or use of the Information. No representation or warranty, express or implied, as to the truth, fullness, fairness, merchantability, accuracy, sufficiency or completeness of the Information is given.
Certain of the industry, market and competitive position data contained in the Information comes from the Group’s own internal research and estimates based on the knowledge and experience of the Group’s management. While the Group reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness, and are subject to change.
