Yorkshire agrees merger with N&P

| April 20, 2011 | 0 Comments

It has been confirmed that Yorkshire Building Society will merger with smaller rival Norwich and Peterborough (N&P) Building Society.

The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures.

Meanwhile, the news comes after N&P, which is Britain’s tenth largest society, was fined earlier this week by the Financial Services Authority (FSA) for giving unsuitable advice on its Keydata products.

The Watchdog said the group failed to properly assess the financial circumstances of many of its customers and often designated them as having a higher tolerance of risk than was appropriate.

N&P will also have to repay more than £50 million in compensation to customers who were sold the product.

Meanwhile, the merger will create a combined mutual with 3 million members and more than 200 branches.

In the last two years, Yorkshire has merged with Barnsley Building Society and Chelsea Building Society.

Commenting on the merger, Gordon Horsfield, chairman of N&P, said: “The opportunity to merge with so highly a respected society as the Yorkshire, where these qualities are so evident, is one which is right for N&P.’”

The merger is expected to be completed by November.

Tags: , , Norwich and Peterborough Building Society

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