Supreme Court grants historic approval for restructuring of Victoria Mutual Group
The Supreme Court of Judicature of Jamaica on November 24 granted an order approving the Schemes of Arrangement for the restructuring of the Victoria Mutual Building Society (VMBS) and its subsidiaries.
Members had approved the VMBS Scheme of Arrangement by overwhelming majority at a mass meeting held in August at the National Arena in Kingston, as well as satellite locations across the island and online. The Scheme is being undertaken to ensure compliance with the Banking Services Act, which requires a corporate group which includes both financial businesses and non-financial businesses to be reorganised by separating the financial services companies from the non-financial companies.
VM’s restructuring will see the establishment of a new financial holding company (VM Financial Group Limited) and a non-financial holding company (VM Innovations Limited) which will both be held under a mutual holding company to be called ‘VM Group Limited’. The VM Group continues to be wholly-owned by its Members.
“This is an historic moment for VM,” said Courtney Campbell, Group President and Chief Executive Officer. “Today’s Court approval is a critical milestone in our journey towards a stronger, better VM, enabling the Group to transform even more lives. I’m 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 wellbeing.”
The reorganisation will also enhance VM’s ability to raise capital and fund its growth targets, ultimately benefitting members. Importantly, all current and future members will retain the unique benefits of mutuality, including:
1. High interest rate on Mortgage Savings Product – iSave For Home
2. Low Processing Fees
3.Competitive interest rates on mortgage loans
4.100% Financing on mortgages for Self-Employed persons
5. Discount on property valuations
6. No fees for MultiLink ABM or point-of-sale transactions
7. No dormancy fees. Accounts are never closed and there are no fees applied for dormancy.
VM is made up of the VM Building Society, VM Investments Limited, VM Wealth Management, VM Property Services, VMBS Money Transfer Services, VM Pensions Management, VM Finance, VM Innovations and the VM Foundation. British Caribbean Insurance Company (BCIC) and Carilend are affiliate companies. Together, these businesses provide a suite of products and services that include:
- Savings and Deposits
- Loan Options
- Foreign Exchange Trading
- Residential and Commercial Mortgages
- Wealth Management and Investment Services
- General Insurance
- Real Estate and Property Services
- Money Transfer Services
- Pension Fund Investment Management
- Pension Fund Administration
- Pension Consultancy