The Government's shareholdings in the Royal Bank of Scotland (RBS) and Lloyds Banking Group (Lloyds) are managed on a commercial basis by an arm's length company, UK Financial Investments Ltd (UKFI). UKFI's objective is to protect and create value for the taxpayer as shareholder with due regard to the maintenance of financial stability and to act in a way that promotes competition.
The framework document between HM Treasury and UKFI sets a requirement that UKFI will not intervene in the day-to-day management decisions or operational decisions of investee companies. The companies will retain their own independent boards, which will manage the banks and determine their strategy.
HM Treasury and UK Financial Investments does not comment on individual contracts offered by or commercial decisions taken by its investee companies.