Establishment of UK Financial Investments Limited (UKFI)
On 3 November 2008, Chancellor of the Exchequer Alistair Darling announced the creation of UK Financial Investments Limited (UKFI); a company wholly-owned by the Government. UKFI will manage the Government’s investments in financial institutions at arm’s length and on a commercial basis. UKFI’s overarching objectives are to protect and create value for taxpayers as shareholders; paying due regard to the maintenance of financial stablity, and to act in a way that promotes competition.
The Government’s intention is to get the British banking system back on its feet, protect consumers and homeowners, and ultimately to return banks in full to the private sector. UKFI, operating at arm’s-length and on a commercial basis, is the best way to achieve this.
UKFI manages the Government’s shares in the Royal Bank of Scotland (RBS) and the Lloyds Banking Group (LBG). It is also responsible for managing Bradford & Bingley and will take on management of Northern Rock in due course.
More detailed information on the relationships between HMT, UKFI and the banks concerned can be found in the following documents:
Full details of the November 2008 announcement can be found in this HM Treasury Press Notice: