View more on these topics

MN could face legal battle

It seems that, while the club and network was sold in February to Freedom Finance, there had been a rival bid from Scarborough.

A writ issued by the society&#39s solicitor Addleshaw Goddard claims it spent £243,000 on external advisers and £102,000 internally as it prepared to buy Mortgage Next.

MN declined to comment following legal advice and Scarborough is remaining similarly tight-lipped, refusing even to answer questions about why it was looking to purchase a network in the first place and whether it plans to bid for another.

A spokeswoman tells Mortgage Strategy: “It is the society&#39s policy not to comment on any transaction that may or may not have happened.”

The Building Societies Association says it is not surprised that with all of the concerns currently surrounding regulation, a society would seek to buy a network.

Rachel Blackmore, external affairs manager at the BSA, says: “Part of what any organisation must do is assess its needs and one of the things any business will be paying close attention to is distribution, particularly in light of the uncertainty before regulation”.

Other societies own networks such as Skipton which has Pink and Enable, and Manchester which owns Mortgage Broking Services.

However, the legal action has apparently left some at Scarborough concerned. One senior executive has been quoted as saying: “One wonders how the society got so far and spent so much without realising the deal was flaky.


Scot Prov gives DMD assistance

From October 9 2004 intermediaries selling protection will have to comply with the DMD as part of Financial Services Authority regulation of protection and general insurance. The DMD means that for sales that take place in any form other than face-to-face, brokers should ensure clients have a copy of all terms and conditions before the […]

Mortgage Choice to offer low application fees

The company has reviewed the application fees of comparable national distributors and lenders and will pitch its own fees at a level which will place Mortgage Choice as the lowest-cost option among similar products shown on the Trigold mortgage sourcing system. Doug Hall, sales director, says: “Under statutory regulation, the FSA&#39s requirements commit firms to […]

CML launches training programme for insurance regulation

Following on from the product the CML developed for MCOB, it has created the online learning programme ahead of Financial Services Authority general insurance regulation being implemented in January 2005. The course is modular and based around the structure of the FSA ICOB Rulebook. Training managers or individual users can select the modules most appropriate […]

C2-Financial promotes Caffrey

He moves into the newly-created position from head of sales and reports directly to managing director David Wylie. Caffrey will now head up the newly-formed management team responsible for all key strategic areas within the group.  He will also be responsible for day-to-day operations at the company and will be based at the Fareham, Hampshire […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


News and expert analysis straight to your inbox

Sign up