TSB Bank PLC (92ZV) and Santander UK plc have made a formal application to the High Court of Justice, filed on 30 October 2026, seeking sanction for the transfer of substantially all of TSB's banking business to Santander UK under Part VII of the Financial Services and Markets Act 2000. The Court hearing is scheduled for 15 February 2027, with the Scheme proposed to take effect on 22 March 2027 if approved. The move represents a significant structural change for TSB customers, creditors, and any parties with an interest in the bank's business. Affected persons retain the legal right to object before or at the Court hearing.

Key Points

  • TSB Bank PLC (92ZV) and Santander UK plc jointly filed a High Court application on 30 October 2026
  • The application seeks Court sanction to transfer substantially all of TSB's banking business to Santander UK via a banking business transfer scheme under FSMA 2000
  • Court hearing scheduled for 15 February 2027; Scheme proposed to take effect 22 March 2027 if sanctioned
  • Investors and affected parties should monitor the Court outcome and any regulatory submissions to the PRA and FCA

TSB and Santander UK Seek High Court Sanction for Part VII Banking Business Transfer

TSB Bank PLC and Santander UK plc submitted their joint application to the High Court of Justice on 30 October 2026, formally initiating the legal process for a banking business transfer scheme under section 111(1) of the Financial Services and Markets Act 2000. The Scheme, if sanctioned, would see substantially all of TSB's business transferred to Santander UK, with the exception of certain specified assets and liabilities outlined in the Scheme Document. This Part VII process is the standard statutory mechanism used in the United Kingdom for court-approved transfers of banking businesses between regulated entities.

February 2027 Court Hearing and Proposed 22 March 2027 Transfer Date

The application is listed to be heard at the Rolls Building, Fetter Lane, London on 15 February 2027. Should the Court grant its approval, the Scheme is currently proposed to take effect on 22 March 2027. TSB has confirmed that any changes to the hearing date will be communicated to relevant parties. The Scheme Document and an accompanying explanatory statement are available free of charge upon request and are also published on TSB's dedicated information website at tsb.co.uk/santander-update, which will be updated as the process develops.

Objection Rights for Customers and Affected Parties Under the FSMA Transfer Process

Any person who believes they would be negatively affected by the Scheme holds a legal right to object. Objections may be submitted to TSB directly by telephone, post, or online, or raised in person at the Court hearing. TSB is required to submit a summary of all objections received to the Court and to both the Prudential Regulation Authority and the Financial Conduct Authority, ensuring regulatory oversight throughout the process. TSB has also committed to making efforts to address concerns raised ahead of the hearing date.

Regulatory Oversight and Implications of the TSB-to-Santander UK Transfer Scheme

The involvement of both the PRA and FCA in reviewing objections underlines the regulatory significance of this transfer for the UK banking sector. The Scheme is subject to independent Court scrutiny, providing a formal layer of protection for depositors and creditors. Investors monitoring the TSB situation should note that certain assets and liabilities are explicitly excluded from the Scheme's scope, though the announcement does not specify which. The proposed transfer timeline, culminating in a March 2027 effective date, represents a material development in TSB's future as a standalone banking entity.