Britannia

Frequently asked questions

We understand that you may have questions about the merger. In this section you’ll find a list of frequently asked questions which should answer most of your queries. However, if you still require further information, please contact us.

• Why is the merger with The Co-operative Financial Services beneficial to Britannia customers?
• How long will it take to integrate the two businesses?
• How does membership of The Co-operative Group compare/differ to membership of Britannia?
• What happens if I am already an existing Co-operative member?
• Will I continue to receive BMR/ will I be entitled to The Co-operative Group membership rewards?
• How do I become a member of The Co-operative Group?
• Will I still be entitled to the same reward payment under The Co-operative Membership?
• What protection do my savings have under the Financial Services Compensation Scheme (FSCS)?
• What will happen to the Britannia branches as a result of the merger?
• How many members of the Society needed to vote in favour of the merger?

Why is the merger with The Co-operative Financial Services beneficial to Britannia customers?

The Boards of Britannia and The Co-operative Financial Services agreed to merge to create a unique, ethical alternative to shareholder and Government-owned banks.

As a merged business we will continue to offer customers the things they love about Britannia which are:

• Being member owned – having a say in how the business is run
• A commitment to an extensive branch network
• Receiving a share of the profits.

In addition they will get:

• Enhanced products and services such as current accounts, internet capabilities, personal loans and credit cards
• The benefit of being part of a larger group and the opportunity to earn rewards across The Co-operative family of businesses. Including financial services, food, pharmacy, travel, funeralcare, legal services and electrical.

How long will it take to integrate the two businesses?

Bringing the businesses together is expected to take around 3 years. We will be working as quickly as possible to offer customers the full range of products and services.

How does membership of The Co-operative Group compare/differ to membership of Britannia?

The key values, beliefs and commitment to member ownership are the same for both The Co-operative Group and Britannia Building Society.

Now that we’ve merged, Britannia is no longer a building society but it remains part of a group which is owned by its members.

What happens if I am already an existing Co-operative member?

Prior to the merger, we are sending out a series of mailings to members which provide them with the opportunity to join The Co-operative Membership. However, if you’re already a member of The Co-operative Group, rest assured that you do not need to take any action.

If you are already a member of The Co-operative Group, your details and reward entitlement will be transferred to your existing membership and you will not receive a new membership card. You’ll start to earn membership points on your eligible Britannia accounts from 1 January 2010.

Will I continue to receive BMR/ will I be entitled to The Co-operative Group membership rewards?

The BMR scheme will continue to run until the end of 2009, with a final BMR payment being made by the end of March 2010.

From 1 January 2010, all members of The Co-operative Group – including those former Britannia members that joined The Co-operative Membership - will begin earning points on their eligible Britannia accounts and policies under The Co-operative Membership and will receive their first share of the profits payment for these products, for the first half of the year (January to June 2010) in November 2010*.

Britannia customers can also begin earning points towards the share of the profits payment on a range of The Co-operative Group products and services once they have received The Co-operative Membership card in the summer.

If a customer has not yet qualified for BMR (i.e. they have been a customer for less than two calendar years) they have the potential to receive a share of the profit payment as a member of The Co-operative Group before they would under the BMR scheme as there is no qualifying period.

The law currently prevents under 16s from joining The Co-operative Membership, but this is due to be reviewed. If it is changed, these customers will be invited to join. If not, we will write to all customers affected to explain how they will be compensated for the loss of reward. These customers will also be invited to join The Co-operative Membership when they reach 16, as long as they have remained a customer since the merger.

* Subject to meeting the £2 threshold for the share of the profits payment

How do I become a member of The Co-operative Group?

Membership of The Co-operative Group has been offered automatically to all former adult Britannia members that were eligible to vote at the Annual Meeting and all former adult members who participate in the Britannia Membership Reward scheme. Normally, membership of the Co-operative Group requires a nominal £1 membership fee, but this will be paid for those who have been offered automatic transfer to The Co-operative Membership.

In addition, these customers had the right to opt-out of membership of The Co-operative Group. Details of how this could have been done were sent to these customers during June 2009.

All other adult Britannia customers have been offered the opportunity to join The Co-operative Membership in July 2009. As they are not eligible for automatic transfer, they will be required to make the £1 payment should they wish to join.

Will I still be entitled to the same reward payment under The Co-operative Membership?

Both schemes award points and pay you a share of the profits, but The Co-operative Membership offers several additional benefits:

• Rewards are paid twice a year
• No maximum amount a member can earn
• Earn rewards across The Co-operative Group family of businesses

There are some differences between the Britannia Membership Reward scheme and The Co-operative Membership. Whilst some existing Britannia members who currently receive BMR could earn a higher share of the profits payment as a member of The Co-operative Group, some members could earn fewer points on their eligible Britannia accounts. We will calculate what you would have earned under BMR had the merger not taken place and compare this with what you will earn on your Britannia accounts under Co-operative Membership. If it is determined that under Co-operative Membership you will be worse off, we’ll seek to adjust your share of the profits payment. Any adjustment to your reward is subject to an annual review by The Board of The Co-operative Financial Services. Further details on how this adjustment will work will be made available nearer to the time of The Co-operative Membership payment.

What protection do my savings have under the Financial Services Compensation Scheme (FSCS)?

Britannia is a trading name of The Co-operative Bank plc which is a member of the Financial Services Compensation Scheme (FSCS), established under the Financial Services and Markets Act 2000, which would pay compensation to eligible customers in the unlikely event of the Bank becoming insolvent. Ordinarily payments under the scheme are limited to a maximum of £50,000 of an eligible depositor’s total deposits held with the Bank.

Although the vast majority of our customers will be covered by the FSCS, in line with the maximum amount per person, certain customers are not covered. The exclusions include large companies, large mutual associations and local authorities. Further details of the cover provided by the FSCS are available at www.fscs.org.uk or by phoning the FSCS on 020 7892 7300.

Depositors are generally restricted to one maximum amount of £50,000 across an organisation, irrespective of the number of accounts held with that organisation. However, if you held accounts, which were covered by the FSCS, with both The Co-operative Bank and with Britannia Building Society immediately prior to the date of merger of the two organisations on 1st August 2009, then until 30th December 2010 those accounts with each of the Bank and Britannia are covered for up to £50,000 each i.e. £50,000 for your Co-operative Bank account(s) and £50,000 for your Britannia account(s).

What will happen to the Britannia branches as a result of the merger?

We will be increasing our branch network to more than 300 branches as a result of the merger. Where there are two branches in the same town, these may be merged in due course but there will be no compulsory redundancies among branch staff as a result of the merger.

All of this integration will, of course, take time but it will happen in due course. Rest assured, our branches will continue to look after your needs and you’ll still see the same familiar faces you’re used to dealing with. Until the businesses are fully integrated, Britannia members will not be able to transact in a Co-operative Bank branch for their Britannia accounts and policies. We will keep all customers updated should this situation change during the integration process.

How many members of the Society needed to vote in favour of the merger?

At least 75% of eligible members holding a qualifying savings account, who voted, must have voted in favour of the merger. In addition, of the eligible borrowing members who voted, a straight majority (i.e. more than 50%) must have voted in favour. Both of these requirements had to be met for the merger to proceed. There was no minimum number of votes required.