Yorkshire Building Society has announced that, following a full strategic review, it will wind-down the business of its offshore subsidiary, Yorkshire Guernsey Limited.
In light of changes in the regulatory regime in the UK, Yorkshire Building Society announced last year that it was conducting a strategic review on the future of Yorkshire Guernsey. The review considered a number of options including a potential change in its legal status, sale to a third party or an orderly wind-down of its operations. Regrettably, after very careful consideration, it has been concluded that a process to wind-down the company’s activities should begin.
All deposits in Yorkshire Guernsey remain fully supported by the Yorkshire Building Society Group* until they are either returned to customers or transferred to an alternative deposit taker of their choice. Customers do not need to take any immediate action.
Iain Cornish, Yorkshire’s Chief Executive said "It is with much regret that we have taken the decision to wind-down our Yorkshire Guernsey business. Whilst our offshore operation has been very successful and a valuable asset to the Society since its launch in 1990, recent changes to the treatment of offshore deposit-taking subsidiaries now means that it can no longer serve its original role within the Yorkshire Group.
"As we work through the final stages of this review we will communicate fully with all Yorkshire Guernsey customers to advise them of this decision and how it will be managed. We will ensure that the excellent service that our staff in Guernsey have always provided to customers will continue throughout this process.
"We are very conscious of the impact of this decision on our staff at Yorkshire Guernsey, who have supported the business with complete professionalism throughout the review process. We will work closely to support all affected staff members as the business is wound down".
*Ratings agency Moody’s recently recognised Yorkshire’s strong financial position and robust capital and liquidity levels by upgrading its Bank Financial Strength Rating (BFSR).
Yorkshire Guernsey is a wholly owned subsidiary of Yorkshire Building Society, which is the UK's second largest building society and incorporates the Chelsea Building Society and Barnsley Building Society brands.
The Society has 2.6 million members, 178 branches and 90 agencies across the UK. It is committed to remaining an independent mutual and is determined to return real financial benefits to its members, providing them with long-term value backed up by excellent personal service.
On 20 April 2011 Yorkshire announced its intention to merge with Norwich and Peterborough Building Society (N&P), which is subject to a vote of N&P members and confirmation of the Financial Services Authority (FSA). On 25 July 2011 the Society announced its intention to acquire the Egg Banking Plc mortgage and savings book which, among other things, is subject to approval by the High Court and the opinion of the FSA.
Yorkshire Guernsey was set up as a wholly owned subsidiary of Yorkshire Building Society in June 1990. It is based in St Peter Port and employs 14 people on the island. It has around 6,000 customers with balances of approximately £800m.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
