RBS will relocate if Scotland becomes independent

While the holding company would be moved in the event of a ‘Yes’ vote in the Scottish referendum, RBS stated it would retain a “significant level” of its operations and employment in Scotland to support its customers there and the activities of the whole bank.

A statement from the banking giant said: “There are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the bank’s credit ratings, and the fiscal, monetary, legal and regulatory landscape to which it is subject.

“For this reason, RBS has undertaken contingency planning for the possible business implications of a ‘Yes’ vote. RBS believes that this is the responsible and prudent thing to do and something that its customers, staff and shareholders would expect it to do.

“As part of such contingency planning, RBS believes that it would be necessary to re-domicile the bank’s holding company and its primary rated operating entity (The Royal Bank of Scotland plc) to England.

“In the event of a ‘Yes’ vote, the decision to re-domicile should have no impact on everyday banking services used by our customers throughout the British Isles.

“However, RBS believes that it would be the most effective way to provide clarity to all our stakeholders and mitigate the risks previously identified in our annual report.”

Back in June, the Bank of America Merrill Lynch warned that overseas investors could be “deterred” in the event of Scottish independence, while Scottish-based banks may relocate to England.

In a report, titled ‘What if Scotland Votes for Independence?’, Merrill Lynch said the financial services industry should give the possibility of Scottish independence significant consideration.

It said major banks “might redomicile immediately” to England “under a ‘yes’ vote. Remaining in Scotland could introduce “significant, even defining, levels of redenomination, regulatory and legal uncertainty.”