Virgin Money applies for FSA licence
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Virgin Money has applied to the Financial Services Authority for a banking licence.
A spokesman for Virgin Money says the firm applied for the licence at the beginning of October and says it is simply a “administrative” procedure.
Virgin revealed its intention to become a bank after it made a bid for Northern Rock before the bank was nationalised. It is also a hot favourite to acquire part of the bank if it is split up.
Plans to split Northern Rock are set to gain European approval next week and will see its low-risk mortgage loans separated into a good bank and sold off.
A spokesman for Virgin says: “Since Northern Rock we have stated our intention to become a bank. This is purely an application and it does not mean there is anything in the pipeline.”
