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{{EngvarB|date=February 2017}}
⚫
{{Infobox Company
{{Use dmy dates|date=February 2017}}
⚫
| name = UK Financial Investments Limited
⚫
{{Infobox company
| logo =
⚫
| name = UK Financial Investments Limited
| type = [[Limited company|Limited]]
| genre =
| logo =
| type = [[Private limited company]]<!-- According to Companies House 06720891 -->
| foundation = November 2008
⚫
| industry = [[Financial services|Financial]]
| founder =
| foundation = {{Start date|df=yes|2008|11|3}}<ref>{{cite web |url=http://www.ukfi.co.uk/releases/UKFI%20Introduction.pdf |title=Introduction |publisher=UKFI |access-date=21 March 2015 }}</ref>
| location_city =
| defunct = 31 March 2018
| location_country =
| successor = [[UK Government Investments]]
| location =
| location = [[100 Parliament Street]], London, SW1A 2BQ, UK
| locations =
| area_served =
| locations =
| key_people =
| area_served =
| key_people = {{plainlist|
⚫
| industry = Financial Investments
*[[James Leigh-Pemberton]] {{small|(Chairman)}}
| products =
*Oliver Holbourn {{small|(Chief Executive Officer)}}}}
| services =
| market cap =
| products =
| services = Managed investments in:{{plainlist|
⚫
| revenue =
*[[UK Asset Resolution]]
*[[Royal Bank of Scotland Group|RBS Group]] (62.4%)}}
⚫
| revenue =
| operating_income =
| operating_income =
| net_income =
| net_income =
| assets =
| assets =
| equity =
| equity =
| owner = [[HM Treasury]]<ref name="about">{{cite web |url=http://www.ukfi.co.uk/about-us/ |title=About Us |publisher=UKFI |access-date=22 September 2017}}</ref>
| owner = [[Her Majesty's Government]]
| num_employees =
| num_employees =
| parent =
| parent =
| divisions =
| divisions =
| subsid =
| subsid =
| homepage =
| footnotes =
| homepage = {{url|www.ukfi.co.uk}}
| footnotes =
| intl = yes
}}
}}
'''UK Financial Investments''' ('''UKFI''') was a [[limited company]] set up in November 2008 and mandated by the [[Government of the United Kingdom|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.<ref>{{cite news|title=Share sale returns Lloyds to private sector|url=https://www.bbc.co.uk/news/business-39932871|access-date=17 May 2017|publisher=[[BBC News]]|date=17 May 2017}}</ref> It also previously owned [[Northern Rock]], until that company was taken over by [[Virgin Money UK|Virgin Money]] on 1 January 2012.<ref>{{cite web |url=http://www.ukfi.co.uk/releases/20120101%20UKFI%20completion%20announcement.pdf |title=UKFI confirms completion of Northern Rock sale to Virgin Money |publisher=UKFI |date=1 January 2012 |access-date=1 January 2012 |archive-date=11 January 2012 |archive-url=https://web.archive.org/web/20120111092505/http://www.ukfi.co.uk/releases/20120101%20UKFI%20completion%20announcement.pdf |url-status=dead }}</ref> 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.<ref>{{cite web|url=http://www.ukfi.co.uk/|title=UKFI|website=www.ukfi.co.uk}}</ref>


==History==
'''UK Financial Investments Limited''' is a company set up by [[Her Majesty's Government]] to manage its shareholding in banks subscribing to its recapitalisation fund.
In November 2008, UK Financial Investments was established as part of the UK's response to the financial crisis.<ref>{{cite web| url=https://www.theguardian.com/business/2013/sep/15/son-former-bank-of-england-governor-appointed-ceo-ukfi| title=Son of former Bank of England governor appointed CEO of UKFI| date=September 15, 2013| work=The Guardian| access-date=May 1, 2018}}</ref><ref>{{cite web |url=http://www.hm-treasury.gov.uk/press_114_08.htm |archive-url=http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm-treasury.gov.uk/press_114_08.htm |url-status=dead |archive-date=29 January 2013 |title=New company to manage Government's shareholding in banks |publisher=[[HM Treasury]] |date=3 November 2008 |access-date=30 December 2011}}</ref>


In 2015 UKFI and the [[Shareholder Executive]] became subsidiaries of UK Government Investments and in April 2016 both were merged.<ref>{{cite web |url=https://www.gov.uk/government/news/government-creates-new-company-to-deliver-record-asset-sales-programme|title=Government creates new company to deliver record asset sales programme |publisher=[[HM Treasury]] |date=20 May 2015 |access-date=21 May 2015}}</ref>
The government said the aim of the company would be to “protect and create value for the taxpayer as shareholder, with due regard to financial stability and acting in a way that promotes competition”.


==RBS==
Membership of the UKFI Board will comprise a private sector chairman, three non-executive private sector members, a Chief Executive and two senior Government officials from HM Treasury and the Shareholder Executive.
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%.<ref>{{cite news |url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6494477/Alistair-Darling-RBS-and-Lloyds-bonus-clampdown-better-for-taxpayer.html |publisher=[[The Daily Telegraph]] |title=Alistair Darling: RBS and Lloyds bonus clampdown 'better for taxpayer' | location=London |date=3 November 2009}}</ref> 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.<ref name="ukfi1">{{cite web |url=http://www.ukfi.co.uk/releases/UKFI%20Annual%20Report%202014_int%20.pdf |title=UKFI Annual Report 2014 |publisher=UKFI |access-date=30 July 2014}}</ref> The government's stake had further decreased to 78.3% by August 2015.<ref>{{cite news |title=Government starts RBS share sell-off |url=https://www.bbc.co.uk/news/business-33765763 |publisher=BBC News |date=3 August 2015 |access-date=3 August 2015}}</ref> That month, UKFI disposed of 5.4% of their shareholding in RBS.<ref name="bbc.co.uk">{{cite news|url=https://www.bbc.co.uk/news/business-33769906|title=RBS: Government sells £2.1bn of shares in bank|work=BBC News|date=4 August 2015|access-date=4 August 2015}}</ref> As of April 2020 the shareholding is 62%.<ref>BBC news https://www.bbc.co.uk/news/uk-scotland-scotland-business-52478639</ref>


==Lloyds==
Sir [[Philip Hampton]] has agreed to become the UKFI’s first Chair and [[John Kingman]] will become chief executive. Both will take up these positions shortly.
HM Treasury's shareholdings in Lloyds dropped from 43% to 41% in February 2010 after it issued 3.14&nbsp;billion new shares,<ref>{{cite web |url=http://business.scotsman.com/bankinginsurance/Lloyds-issue-shrinks-taxpayers39-share.6069625.jp |publisher=[[The Scotsman]] |title=Lloyds issue shrinks taxpayers' share to 41% |date=12 February 2010 |access-date=3 January 2012}}</ref> and dropped again in 2013 from 39% to 33% after it sold £3.2&nbsp;billion worth of shares. A trading plan of incremental sales during 2015 reduced the stake to below 10% by the end of October.<ref name=R10pc>{{cite news |title=Government trims Lloyds stake to single-digits as retail offer looms |url=http://uk.reuters.com/article/uk-lloyds-stake-idUKKCN0SN0KL20151029 |archive-url=https://web.archive.org/web/20160126155055/http://uk.reuters.com/article/uk-lloyds-stake-idUKKCN0SN0KL20151029 |url-status=dead |archive-date=26 January 2016 |first=Sinead |last=Cruise |publisher=Reuters |date=29 October 2015}}</ref> Sales resumed in November 2016, as the holding was reduced to 7.99%.<ref name=BBC>{{cite news|title=Government sells more shares in Lloyds Banking Group|url=https://www.bbc.co.uk/news/business-38062159|access-date=22 November 2016|publisher=BBC News|date=22 November 2016}}</ref> By mid-March 2017, the holding was 2.95% and by late April it was just 0.89%.<ref>{{cite news|title=Taxpayer stake in Lloyds Banking Group goes below 3pc |url=https://www.telegraph.co.uk/business/2017/03/15/taxpayer-stake-lloyds-banking-group-goes-3pc/|access-date=17 March 2017|publisher=The Daily Telegraph|date=15 March 2017}}</ref><ref name=Latest>{{cite news|title=Government reduces stake in Lloyds to less than 1%|url=https://www.independent.co.uk/news/business/news/government-reduces-lloyds-bank-stake-less-than-1-a7706876.html|access-date=30 April 2017|date=28 April 2017|work=The Independent}}</ref>


== See also ==
In due course, the Government intends that UKFI will manage its investments in Northern Rock and part of [[Bradford & Bingley]].
* [[2008 United Kingdom bank rescue package]]
* [[2008 Liechtenstein tax affair]]

== References ==
{{reflist|2}}


== External links ==
== External links ==
* {{official website|http://www.ukfi.co.uk/}}
* [http://www.hm-treasury.gov.uk/press_114_08.htm UK government announcement]
* {{cite web |archive-url=http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm-treasury.gov.uk/uk_financial_investments_limited.htm |archive-date=29 January 2013 |url=http://www.hm-treasury.gov.uk/uk_financial_investments_limited.htm |title=Explanation of UKFI |publisher=HM Treasury}}
* [http://www.whatdotheyknow.com/body/ukfi WhatDoTheyKnow.com: UK Financial Investments Ltd]: Freedom of Information requests

{{UK banks |state1=collapsed}}
{{2008 economic crisis}}
{{Economy of the United Kingdom}}

{{authority control}}


[[Category:Government-owned companies in the United Kingdom]]
[[Category:Defunct public bodies of the United Kingdom]]
[[Category:HM Treasury]]
[[Category:Financial services companies of the United Kingdom]]
[[Category:Financial services companies of the United Kingdom]]
[[Category:Northern Rock]]
[[Category:British companies established in 2008]]
[[Category:2008 establishments in the United Kingdom]]
[[Category:Investment in the United Kingdom]]
[[Category:Financial services companies established in 2008]]

Latest revision as of 00:23, 13 September 2024

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

[edit]

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

[edit]

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

[edit]

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

[edit]

References

[edit]
  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.
[edit]
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