Family Investments refuses to be drawn on Engage Mutual future

Family Investments refused to be drawn on the future of Engage Mutual’s Yorkshire office ahead of a member vote on a proposed merger.

It comes as Engage admitted there was “bound to be some overlap” that could lead to job losses should the transaction go through.

In September, the rival assurance and savings mutuals revealed plans to combine their businesses.

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Engage chief executive Peter Burrows denied the move amounted to a takeover, instead hailing it as “an exciting opportunity” for both organisations.

Harrogate-based currently has £900m in assets under management from around 500,000 customers, compared to Family Investment’s £4.9bn from two million members.

The merger terms, published by Family Investments, confirm the new business’ head office would move to Brighton, the current home of the larger firm.

It also said that while the merger is expected to take up to three years to complete, Engage’s presence in North Yorkshire is only guaranteed for two years.

Engage currently employs around 203 people at its Yorkshire site.

A spokesperson for Family Investments said it is “too early to comment” on the long-term future of the Harrogate office, individual roles or functions.

They said: “Our focus is to ensure that we have the right set-up to provide the best possible service for our members.

“Staff will be kept fully updated and involved within that investigative process.”

An Engage Mutual spokeswomen said it would consult with staff ahead of any changes.