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On 16th January 2001 Barclays PLC and Legal & General Group Plc (Legal & General) announced their intention to form
a strategic alliance under which Barclays Bank PLC would, subject to regulatory approval, sell Legal & General branded life,
pension and investment products through its UK distribution network.
As a result it is intended that:
- From 6th April 2001 and subject to the implementation of the FSA’s proposals to relax the current polarisation regime,
Legal & General will make available to Barclays for distribution to its customers, a stakeholder pension product, along with
certain non-regulated group life and related products for business customers.
- Within the next 18 months, the administration and unit trust management of the existing Barclays Funds unit trusts
(including the b2 funds but excluding the Barclays Global Investors branded funds) will be transferred to Legal & General,
subject to regulatory and trustee approval.
- In the second half of 2001 and subject to FSA approval, Barclays intends to offer its customers the full range of Legal &
General’s life, pension and fund products.
- Barclays Life, Barclays Funds and b2 will cease to seek new customers in the second half of 2001.
- Barclays Life’s existing business will be retained and managed as a closed book. Existing customers of Barclays Life will
still be able to make contributions to their Barclays Life pension policy, which will continue to be managed on their behalf.
From 1st January 2001, following the completion of management changes, the Group considers itself to exert dominant
influence so that it has control over the operations of Banco Barclays e Galicia SA and consequently from that date the entity
will be consolidated as a subsidiary in accordance with Financial Reporting Standard 2.
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