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:
Investors and
Analysts
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Richard Smith
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+44 7483 399 303
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Head of Investor Relations &
Sustainability
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richard.smith@virginmoney.com
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Amil Nathwani
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+44 7702 100 398
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Senior Manager, Investor
Relations
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amil.nathwani@virginmoney.com
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Martin Pollard
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+44 7894 814 195
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Senior Manager, Investor
Relations
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martin.pollard1@virginmoney.com
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Company
Secretary
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Lorna McMillan
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+44 7834 585436
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Group Company Secretary
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lorna.mcmillan@virginmoney.com
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Media
Relations
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Press Office
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0800 066 5998
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press.office@virginmoney.com
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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.