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UK Financial Investments

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UK Financial Investments Limited
Company typePrivate limited company
IndustryFinancial
Founded3 November 2008 (2008-11-03)[1]
Defunct31 March 2018
SuccessorUK Government Investments
Headquarters100 Parliament Street, London, SW1A 2BQ, UK
Key people
ServicesManaged investments in:
OwnerHM Treasury[2]
Websitewww.ukfi.co.uk

UK Financial Investments (UKFI) was a limited company set up in November 2008 and mandated by the British government to manage HM Treasury's shareholdings in the Royal Bank of Scotland Group (RBS) and in UK Asset Resolution, which held the residual assets of NRAM plc and Bradford & Bingley. UKFI formerly managed the British government's shares in Lloyds Banking Group, until the government confirmed that all its shares had been sold on 17 May 2017.[3] It also previously owned Northern Rock, until that company was taken over by Virgin Money on 1 January 2012.[4] UKFI ceased trading on 31 March 2018, and its business and assets were transferred to UK Government Investments, a limited company wholly owned by HM Treasury.[5]

History

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In November 2008, UK Financial Investments was established as part of the UK's response to the financial crisis.[6][7]

In 2015 UKFI and the Shareholder Executive became subsidiaries of UK Government Investments and in April 2016 both were merged.[8]

RBS

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On 3 November 2009, the government injected further capital into RBS in particular, which resulted in HM Treasury's shareholdings in that company rising from 70% to 83%.[9] Since then, the proportion of those shareholdings have fallen slightly to 80%, as of end-March 2014, because of new issues of shares to other shareholders during the past few years.[10] The government's stake had further decreased to 78.3% by August 2015.[11] That month, UKFI disposed of 5.4% of their shareholding in RBS.[12] As of April 2020 the shareholding is 62%.[13]

Lloyds

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HM Treasury's shareholdings in Lloyds dropped from 43% to 41% in February 2010 after it issued 3.14 billion new shares,[14] and dropped again in 2013 from 39% to 33% after it sold £3.2 billion worth of shares. A trading plan of incremental sales during 2015 reduced the stake to below 10% by the end of October.[15] Sales resumed in November 2016, as the holding was reduced to 7.99%.[16] By mid-March 2017, the holding was 2.95% and by late April it was just 0.89%.[17][18]

See also

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References

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  1. ^ "Introduction" (PDF). UKFI. Retrieved 21 March 2015.
  2. ^ "About Us". UKFI. Retrieved 22 September 2017.
  3. ^ "Share sale returns Lloyds to private sector". BBC News. 17 May 2017. Retrieved 17 May 2017.
  4. ^ "UKFI confirms completion of Northern Rock sale to Virgin Money" (PDF). UKFI. 1 January 2012. Archived from the original (PDF) on 11 January 2012. Retrieved 1 January 2012.
  5. ^ "UKFI". www.ukfi.co.uk.
  6. ^ "Son of former Bank of England governor appointed CEO of UKFI". The Guardian. 15 September 2013. Retrieved 1 May 2018.
  7. ^ "New company to manage Government's shareholding in banks". HM Treasury. 3 November 2008. Archived from the original on 29 January 2013. Retrieved 30 December 2011.
  8. ^ "Government creates new company to deliver record asset sales programme". HM Treasury. 20 May 2015. Retrieved 21 May 2015.
  9. ^ "Alistair Darling: RBS and Lloyds bonus clampdown 'better for taxpayer'". London: The Daily Telegraph. 3 November 2009.
  10. ^ "UKFI Annual Report 2014" (PDF). UKFI. Retrieved 30 July 2014.
  11. ^ "Government starts RBS share sell-off". BBC News. 3 August 2015. Retrieved 3 August 2015.
  12. ^ "RBS: Government sells £2.1bn of shares in bank". BBC News. 4 August 2015. Retrieved 4 August 2015.
  13. ^ BBC news https://www.bbc.co.uk/news/uk-scotland-scotland-business-52478639
  14. ^ "Lloyds issue shrinks taxpayers' share to 41%". The Scotsman. 12 February 2010. Retrieved 3 January 2012.
  15. ^ Cruise, Sinead (29 October 2015). "Government trims Lloyds stake to single-digits as retail offer looms". Reuters. Archived from the original on 26 January 2016.
  16. ^ "Government sells more shares in Lloyds Banking Group". BBC News. 22 November 2016. Retrieved 22 November 2016.
  17. ^ "Taxpayer stake in Lloyds Banking Group goes below 3pc". The Daily Telegraph. 15 March 2017. Retrieved 17 March 2017.
  18. ^ "Government reduces stake in Lloyds to less than 1%". The Independent. 28 April 2017. Retrieved 30 April 2017.
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