Yorkshire Building Society is to wind-down its offshore subsidiary Yorkshire Guernsey following a full strategic review.
Yorkshire said that in light of changes in the regulatory regime in the UK it has concluded that a wind-down was the best option.
Yorkshire Guernsey employs 14 people on the island and has around 6,000 local and off-island customers with £800m in deposits. Yorkshire announced last year it was conducting a strategic review on the future of Yorkshire Guernsey.
It considered a number of options including a potential change in its legal status, sale to a third party or an orderly wind-down of its operations.
All deposits in Yorkshire Guernsey will remain fully supported by the society until they are returned to customers or transferred to an alternative deposit taker of their choice. The society said customers do not need to take any immediate action.
Iain Cornish, Yorkshire’s chief executive, said “Our offshore operation has been very successful and a valuable asset to the society since its launch in 1990, however recent changes to the treatment of offshore deposit-taking subsidiaries now means that it can no longer serve its original role.”
When Yorkshire Guernsey was set up customers did not have to declare their tax, but regulatory changes introduced at the end of last year mean the sums no longer add up for the society.
“We will work closely to support all affected staff members as the business is wound down,” said Mr Cornish.