Banking Licence Granted

Schroders PLC
2 October 2000




                 SCHRODERS PLC ANNOUNCES THE AUTHORISATION OF                 
                            SCHRODER & CO. LIMITED                            

Schroders plc announced today (2nd October 2000) that the FSA had granted it a
banking licence under the Banking Act of 1987 for a new UK incorporated
authorised institution to be called Schroder & Co. Limited (Schroder & Co).  

All of Schroders' private client activities in the UK will be transferred to
Schroder & Co over the coming months and the bank will provide a full range of
banking and investment management services.

The establishment of Schroder & Co is an important step in developing the
Group's global private banking activities, particularly in the EU.  The Group
also provides services for private clients in Switzerland, the Channel
Islands, the Americas and the Asia Pacific region.

Schroder & Co will be launched formally in early November.  The new bank will
be chaired by Andrew Sykes, an executive director of Schroders plc.


For further information contact:

Schroders plc
Andrew Sykes, Chairman, Schroder & Co. Limited    Tel: [phone]
Julian Samways, Head of Corporate Communications, 
Schroders plc                                     Tel: [phone]

GCI Financial
Emily Morris                                      Tel: [phone]