CORRECTED-UK banks have 3 months to submit ring-fence plans

(Corrects to show deadline is in three months, not two)

* Banks have to submit ring-fence plans to BoE by Jan 6

* Banks must outline legal, operational structures

* Capital requirements for ring-fenced banks expected 2015

LONDON, Oct 6 (Reuters) - Britain's banks have three monthsto submit plans on how they intend to separate their domesticretail banking operations from riskier parts of the bank, theBank of England said on Monday.

Britain is forcing banks to throw a protective boundaryaround domestic high street banking in an effort to protecttaxpayers from having to bail out losses made in riskier partsof investment banking. The changes will come into effect by2019.

The Bank of England said banks have to submit preliminaryplans by Jan. 6, 2015. It did not reveal if banks will need tohold more capital in the ring-fenced bank or if leverage ratioswill be different, and said those details will come at a laterdate, expected next year.

Banks will need to submit details on their legal andoperating structure, including balance sheets and profit andloss statements.

Banks have been working on plans for the separation, buthave said they need more clarity from the regulator on what isto be included in the ring-fenced bank, particularly how someservices are provided to companies, such as derivatives andhedging products, and the level of capital required.

The BoE said it expects no more than one-third of thering-fenced bank's board to be current employees or directors ofanother part of the group. The chairman and chief executive ofthe ring-fenced bank will not be executives of parts of the bankthat conduct activities not allowed within the ring-fence.

Pay policy at the ring-fenced bank should be made in amanner consistent with sound risk-management and long-terminterests of the domestic retail bank, and distinct from thegroup as a whole, the BoE said. (Reporting by Steve Slater; Editing by Huw Jones)