NATIONWIDE BACKS PARLIAMENTARY REPORT HIGHLIGHTING THE TRUE COST OF DEMUTUALISATION

7 March 2006

Nationwide Building Society has welcomed the All Party Parliamentary Group on Building Societies and Financial Mutuals’ report on the true cost of demutualisation, published today.

The report, ‘Windfalls or Shortfalls? The True Cost of Demutualisation’, highlights the largely negative impact which previous demutualisations have had on customer choice and financial services provision in the UK.  It recommends that legislation should be introduced to require an independent check on demutualisation ‘windfalls’ to ensure that members’ interests are protected.

Nationwide’s executive director Stuart Bernau said,
“In the last ten years, Nationwide has handed back around £4bn in pricing benefits to our members.  In contrast this year the banks, including several former mutuals, have once again reported record profits.  We welcome this report and the recognition of the positive role played by building societies in protecting consumer choice.  We will be supporting its recommendations.”