Leading financial institution, Victoria Mutual Building Society, has been given the go-ahead for the major restructuring plans for its building society and subsidiaries, after receiving approval from the Supreme Court.
Having received approval from the board and the Bank of Jamaica, the mortgage bank, which has a variety of non-banking companies under its belt, has complied with the Banking Services Act.
It means that a corporate group, which includes both financial businesses and non-financial businesses, will be reorganised by separating the financial services companies from the non-financial companies.
Marking the final in a series of steps undertaken by Victoria Mutual Building Society (VMBS), restructuring of the group is expected to be wrapped up by the close of 2023 The Group said: "Coming on the heels of our recent credit card launch will be an international debit card in 2023 and we will be pursing more local and regional expansion of our retail products." They also said that the restructuring will also allow the group greater flexibility within the structure to raise and deploy capital into various business lines where it sees fit.
The Building Society is already attracting high interest rates that is paid out to its members on mortgage savings product, low-processing fees, competitive interest rates, 100-per-cent financing on mortgages for self-employed people, discount on property valuations, no fees for MultiLink ABM or point-of-sale transactions and no dormancy fees. And, once completed, the restructuring will strip VMBS of its rank and obligations as a parent company.
VM’s restructuring will see the establishment of the VM Financial Group Limited and VM Innovations Limited – both under the VM Group Limited mutual holding company. Responding to the restructuring, Group President and CEO Courtney Campbell said: “This is an historic moment for VM.
“I am hugely grateful to our members for the overwhelming support they have shown for this Scheme of Arrangement and for understanding that this will no doubt lead to unprecedented growth for their organisation and consequently, more people being empowered to achieve financial well-being.”
