MPs write to BoE about LV= tie up with Bain Capital
By Jean-Baptiste Andrieux 13
th May 2021 2:45 pm
MPs have written to Bank of England governor Andrew Bailey to highlight their concerns about the proposed demutualisation of Liverpool Victoria (LV=).
The letter also expresses worries about its potential sale to US private equity company Bain Capital.
It is dated 10 May 2021 asks pointed questions about the central bank’s interactions with LV= in the past.
It is from a number of MPs who are members of the all-parliamentary group for mutuals including its chair, MP Gareth Thomas.
The group has taken a leading role in scrutinising the merits of the proposed deal.
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The chair of the all-party parliamentary group for mutuals (AAPG) has written to LV= chairman Alan Cook to understand his motivations for the sale of the insurer to US firm Bain Capital and whether he received any remuneration for it.
In a letter seen by
International Adviser, Gareth Thomas MP said that Cook has been “the one constant in the leadership of LV=” during its conversion to a limited company in May 2019, chief executive changes, the decision to not hold an annual general meeting in 2020 and to demutualise LV= and sell it in October 2020.
They allege a lack of openness and transparency surrounding LV=’s plans to demutualise.
The questions in the letter to Cook asked about the demutulisation, his personal financial interest and several other matters (see table below).
Demutualisation
What were the instructions given to Fenchurch Advisory?
Whether you will publish your full terms of engagement with Fenchurch Advisory?
Your personal financial interest
What would your remuneration be as chairman of the new Bain owned business including pay, share options and other benefits?
Given Bain’s previous practice of replacing much of the senior leadership of the businesses that they take over and given the evidence received by the inquiry that Bain do not intend to retain most of the current directors of the board, have you entered into a written agreement to secure your continued involvement in the business?