Lloyds Banking Group is planning to float its 631-branch subsidiary, TSB, on London Stock Exchange (LSE), amid fears over an independent Scotland, according to The Telegraph.
The decision comes at a time when Lloyds is preparing to launch a £1.5bn IPO to divest approximately 50% stake in TSB, which will be placed into TSB Banking Group plc registered in London.
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The move implies that TSB will be subject to English law, despite its holding companies both TSB Bank plc and Lloyds are incorporated in Scotland.
A Lloyds spokesman stressed that TSB "will remain a Scottish bank" because that is where it is licensed.
The changes, which are subject regulatory approval, will not affect customers, as they will be served by Scotland-registered TSB Bank plc and remain covered by the Financial Services Compensation Scheme, reported the news agency.
A TSB spokesman said: "Establishing new companies as part of a listing or IPO process is standard practice… The completion of the restructure is subject to regulatory approval."
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