View more on these topics

FSA gives Britannia green light for Co-Op merger

The FSA has given Britannia building society the go ahead to merge with the Co-Operative Bank.

At the end of January the boards of Britannia and Co-Op agreed to merge to create a “super mutual”. At the time the proposed group called it a “unique, ethical alternative to shareholder and Government-owned banks”.

But now the regulator has agreed to the merger after almost nine out of 10 Britannia members said yes to the move at its AGM in April.

The FSA also agreed current Britannia chief executive Neville Richardson would become head of the new Co-Operative Financial Services group.

This now means Britannia ceases to be a mutual society, and using new laws within the Building Societies Act, the new group will become a unique “different type of mutual society”. This is the first move of its type using the new legislation.

Recommended

Sales letter missed the point

As any journalist who covers the financial services industry will tell you, there is a lot of turgid writing about. By that, I am not, of course, referring to any of my colleagues, whose limpid prose graces the pages of this paper and many other personal finance sections, magazines and websites.

Morgan Stanley features market timing

Morgan Stanley has introduced a structured product that has a market timing feature to select the best entry point into the FTSE 100 index at the start of its five-year term.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment