Curtains come down as century-old VMBS reorganised

Durrant Pate/Contributor

The VM Financial Group has formally been incorporated, finalising the reorganisation of the century-old Victoria Mutual Building Society (VMBS) which over the years has grown into a financial group of companies.

The incorporation of VM Financial Group as a new financial holding company on February 1 this year, strips VMBS of its rank and obligations as a parent company. This incorporation came after the Supreme Court of Jamaica on November 24 last year issuing its Final Order approving the implementation of the Scheme of Arrangement.

The Scheme of Arrange included the establishment of VM Financial Group, as the new parent holding company for VM Investments Limited (VMIL), which is listed on the Jamaican stock market. The relevant activities for implementation of the Scheme of Arrangement have been duly executed, resulting in the incorporated of VM Financial Group.

ASSURING COMPLIANCE WITH BANKING SERVICES ACT

VMIL shareholders on August 10 last year overwhelmingly approved the VM Group Scheme of Arrangement and also approved the change of name from Victoria Mutual Investments Limited to VM Investments Limited.

The change has been 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 reorganized by separating the financial services companies from the non-financial companies.

Importantly, the restructuring, according to the management will also allow the group greater flexibility within the structure to raise and deploy capital into various business lines where it sees fit.