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.