In a statement, the bank said the transfer will be conducted on a phased basis both this year and in 2015. It is expected to be cleared by the City regulator this summer.
The bank also posted a notification to the London Stock Exchange in which it described the deal’s value as “not material”. According to the notification, the deal will involve the transfer of up to £15bn of liabilities to BNP Paribas.
RBS had previously signalled that it would quit the structured retail investment product market as part of a strategic review of its markets division.
The revelation that RBS would divest itself of the products first emerged in June last year, when the bank also indicated that it would axe 4000 jobs.
RBS reconfirmed its decision in its 2013 interim results, published last autumn, stating that it would de-emphasise this “more capital intensive” area of the business.
Thomas Hughes, operations manager at Newcastle-upon-Tyne-based Structured Products Review, said: “It is a pity to lose a counterparty in this market, but their direct involvement in retail investment products had started tailing off in recent times.”
