Completion of sale of Bank of Cyprus UK

Completion of sale of Bank of Cyprus UK

Information about the sale of Bank of Cyprus UK Limited which was completed on Friday 23 November 2018.

Strategy, rebrand and continuity of business

  1. What has happened?
  • Bank of Cyprus UK has been acquired by Cynergy Capital Limited. This follows Bank of Cyprus Holdings signing a binding agreement with Cynergy Capital to sell its wholly owned subsidiary bank in the UK.
  • Bank of Cyprus UK is expected to be rebranded as ‘Cynergy Bank’, a name chosen to reflect the bank’s Cypriot heritage combined with a modern and energetic future.
  1. How will the sale/rebrand impact UK customers?
  • Our strategy remains the same and it will be business as usual for customers.
  • There will be no change to any of the facilities, agreements, terms and conditions or relationships that our customers have with our business today as a result of this transaction.
  • All customer accounts, customer agreements, transactions and security arrangements, including customers’ standing order and direct debit instructions remain unchanged.
  • You will still be able to use your existing Bank of Cyprus UK cheque books, debit cards and other documentation. Existing credit facilities and other agreements you entered into with us before the transfer will remain in force and be governed by the same terms and conditions.
  • There will be no change to your day-to-day banking arrangements and all online usernames and passwords will remain unchanged.
  • We remain fully authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Eligible deposits remain protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK’s deposit guarantee scheme.
  • This is an exciting phase in our development as a bank.
  • We envisage a smooth transition to the new brand for customers, who stand to benefit from additional investment in our products and services.
  1. How will the sale/rebrand impact Cypriot customers of Bank of Cyprus UK?
  • We have worked for decades with Cypriot and UK-Cypriot customers and businesses. We are immensely proud of our history and we will continue to stay true to this heritage.
  • As a result of this transaction, Bank of Cyprus Holdings and Cynergy have signed a cooperation agreement which will see both organisations cooperating in a number of key areas going forward. These include continuity of servicing and banking support for both Group and UK customers.
  • Our strategy remains the same - we envisage there will be a smooth transition to the new brand for customers, who stand to benefit from additional investment in products and services.
  • There will be no change to any of the facilities, agreements, terms and conditions, relationships or day-to-day banking arrangements that our customers have with our business today as a result of this transaction.
  1. Why is Bank of Cyprus UK being sold? Why now?
  • The decision to sell the UK Bank is in line with the Group’s strategy.
  • The sale to Cynergy is good news for our customers and will enable the bank to focus on growing our franchise across enterprising business owners and savers in the UK, including the underserved property and SME market.
  • The bank will benefit from the increased scale that investment can bring, which will further improve the customer experience, and bring greater value for our colleagues and all stakeholders in the business.
  1. What will change? Will there be a change to the strategy?
  • The decision by Cynergy Capital Limited to invest in our business is an endorsement of our medium-term business strategy. Their tangible support for our strategy takes us into an exciting phase of development for our business.
  • Under the ownership of Cynergy Capital Limited, Bank of Cyprus UK will continue to focus on being the bank of choice for enterprising business owners and savers. With new ownership the Bank will also further improve client and customer experience through increased scale.
  • On completion of the sale, we expect to rebrand as ‘Cynergy Bank’. We will provide more detail on the rebrand in due course.
  1. Are you moving away from your heritage?
  • No. We have worked for decades with UK-Cypriot customers and businesses. We are immensely proud of our history and we will continue to stay true to this heritage.
  • Cynergy is a name chosen to reflect the bank’s Cypriot heritage combined with a modern and energetic focus.
  1. Why did you decide on Cynergy Bank?
  • Cynergy is a name chosen to reflect the bank’s Cypriot heritage combined with a modern and energetic focus.
  1. Who is Cynergy Capital Limited?

    Cynergy is led by a consortium comprising Mr. Pradip Dhamecha (OBE), Mr. Balbinder (Bal) Sohal, Mr. John Coulter and Ms. Ann Jones. The consortium investors are experienced business owners in the UK, focused on the retail and SME sectors. They have worked together for several years and have a number of successful business interests and investments, in a variety of sectors including retail, wholesale, property and financial services.

  2. What should customers do?
  • Customers do not need to do anything at this stage.
  • There will be no change to your day-to-day banking arrangements.
  • We will continue to keep our customers informed during the process.


Deposit protection and FSCS

  1. Are my deposits safe with Bank of Cyprus UK?
  • Yes.
  • Established in the UK since 1955, Bank of Cyprus UK Limited is a UK bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Eligible Deposits are protected under the Financial Services Compensation Scheme up to the current statutory threshold of £85,000. Bank of Cyprus UK has its own Board of Directors and ring-fenced capital and liquidity.
  1. Following the transfer will deposits still be covered by the UK Financial Services Compensation Scheme (FSCS)?
  • Yes.
  • Following the transfer the bank will remain a UK incorporated and authorised bank. Deposits are protected by the UK Financial Services Compensation Scheme (FSCS) up to a limit of £85,000 per eligible depositor.

Termination of products  

  1. I am not happy about the proposed transfer: Can I terminate my Bond, OEAA, Cash ISA or Notice Account?

There will be no change to any of the facilities, agreements, terms and conditions or relationships that our customers have with our business today as a result of this transaction

Fixed Rate Bond – You are unable to close your Fixed Rate Bond before the end of the Fixed Term.

FlexiBond – You are unable to close your FlexiBond before the end of the Fixed Term. However you can make up to two withdrawals for a combined total of 30% of the original deposit subject to providing us with at least 35 days’ notice.

35 and 95 Day Notice Account – Yes. You can make withdrawals or close your account subject to providing us with at least 35/95 (as applicable) days’ notice.

Online Easy Access Account – Yes. You may close your account online at any time without charge or notice. You must provide your instruction to close your Account online using our Online Banking Service. The funds paid away can only be made to the linked nominated account that you set up when you open the account (usually your current account) or to another Bank of Cyprus UK account in your name.

Instant Access Account – Yes. You can close your account by writing to us or sending us a secure message via OLB without charge or notice.

Current Account – Yes. You can close your account by writing to us or sending us a secure message via OLB without charge or notice.

Fixed Rate Cash ISA – You can close your Fixed Rate ISA before the end of the fixed term whenever you choose subject to the loss of 180 days gross interest. You may get back less than originally deposited if sufficient interest has not accumulated to cover this. If you wish to retain the tax-free status of any funds please note you’ll need to use your new providers “transfer” service.

Variable Rate Cash ISA - Yes. You can make withdrawals or close your account for free subject to providing us with at least 35 days’ notice. You can also make withdrawals or close your account earlier subject to the loss of 35 days gross interest on the amount withdrawn. If you wish to retain the tax-free status of any funds please note you’ll need to use your new providers “transfer” service.

Junior Cash ISA – The ISA rules do not allow for withdrawals from a Junior ISA until the child’s 18th birthday. You can however transfer the whole value of a Junior ISA to another Junior ISA Manager. To transfer a Junior ISA please apply to your chosen new Junior ISA provider who will contact us to arrange and complete the transfer of the Junior ISA - we will waive the requirement for 95 days’ notice a JISA transfer.

 

Rebrand of Bank of Cyprus UK to Cynergy Bank

Information about the rebrand of Bank of Cyprus UK to Cynergy Bank which was completed on Monday 3 December 2018.

Continuity of business

What has happened?

  • Bank of Cyprus UK has been acquired by Cynergy Capital Limited. This follows Bank of Cyprus Holdings Limited signing a binding agreement with Cynergy Capital Limited to sell its wholly owned subsidiary bank in the UK.
  • The sale has now been approved by the respective regulatory bodies in the UK and Cyprus.
  • Bank of Cyprus UK will rebrand to Cynergy Bank on 3 December 2018.

Who is Cynergy Capital Limited?

  • Cynergy Capital Limited is led by a consortium comprising Mr. Pradip Dhamecha (OBE), Mr. Balbinder (Bal) Sohal, Mr. John Coulter and Ms. Ann Jones. The consortium investors are experienced business owners in the UK, focused on the retail and SME sectors (small and medium-sized enterprises). They have worked together for several years and have a number of successful business interests and investments, in a variety of sectors including retail, wholesale, property and financial services.

How does the sale impact UK customers?

  • On the completion date, Cynergy Capital Limited assumed all aspects of Bank of Cyprus UK including banking business, all assets, liabilities, contractual rights, obligations, guarantees and security arrangements, save for certain staff pension obligations and a small number of loans where we have informed customers individually.
  • This is an exciting phase in our development. Our strategy remains the same and it is business as usual for customers.
  • There is no change to any of the facilities, agreements, terms and conditions or relationships that our customers have with our business today as a result of the sale.
  • All customer accounts, customer agreements, transactions and security arrangements, including customers’ standing order and Direct Debit instructions remain unchanged.
  • Existing credit facilities and other agreements entered into with us before the transfer will remain in force and will continue to be governed by the same terms and conditions.
  • There is no change to your day-to-day banking arrangements and all online usernames and passwords remain unchanged.

How does the sale impact Cypriot customers of Bank of Cyprus UK?

  • We have worked for decades with Cypriot and UK-Cypriot customers and businesses. We are immensely proud of our history and we will continue to stay true to this heritage.
  • As a result of this transaction, Bank of Cyprus Holdings and Cynergy Capital Limited have signed a cooperation agreement which will see both organisations cooperating in a number of key areas going forward, including servicing and the provision of banking support to UK and international customers.
  • There is no change to any of the facilities, agreements, terms and conditions, relationships or day-to-day banking arrangements that our customers have with our business today as a result of this transaction.

Why is Bank of Cyprus UK being sold?

  • The decision to sell the UK subsidiary is in line with the Group’s strategy.
  • The sale to Cynergy Capital Limited is good news for our customers and will enable the Bank to focus on growing our franchise across enterprising business owners and savers in the UK, including the underserved property and SME market.
  • The Bank will benefit from the increased scale that investment can bring, which will further improve the customer experience and bring greater value for all stakeholders in the business.

Will there be a change to the strategy?

  • The decision by Cynergy Capital Limited to purchase and invest in our business is an endorsement of our business strategy. Their tangible support takes us into an exciting phase of development for our business.
  • Under the ownership of Cynergy Capital Limited, Cynergy Bank will continue to focus on being the bank of choice for enterprising business owners and savers.

What should customers do?

  • You do not need to do anything at this stage.
  • There is no change to your day-to-day banking arrangements and all online usernames and passwords remain unchanged.

Deposit protection and FSCS

Are my deposits safe with Cynergy Bank?

  • Yes, as a UK bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, eligible deposits with Cynergy Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme. The maximum compensation limit applies per depositor not per account, so for joint accounts each account holder would be entitled to compensation up to the maximum limit.
  • Cynergy Bank has its own Board of Directors and ring-fenced capital and liquidity.

Current accounts – debit cards, chequebooks and paying-in books

Will I receive a new debit card, chequebook and paying-in book?

  • If you have a current account with us and have used your debit card, chequebook and/or paying-in book in the last 12 months then you shall automatically receive a replacement.
  • When you receive your Cynergy Bank debit card, chequebook and/or paying-in book, please ensure that you securely destroy your Bank of Cyprus UK versions.
  • When you receive your replacement debit card you can make chip and PIN purchases right away.
  • For security you must enable contactless and online payments by first completing a successful chip and PIN purchase or cash withdrawal at an ATM.
  • If you have not used your debit card, chequebook or paying-in book in the last 12 months, then please contact us to arrange replacements.
  • You will not be able to use your existing Bank of Cyprus UK debit card after 31 January 2019 and you should avoid using Bank of Cyprus UK chequebooks and paying-in books after this date.

Website and Online Banking

Will the website and Online Banking continue to be available?

  • We will update our systems to Cynergy Bank during the weekend of Saturday 1 and Sunday 2 December 2018. While we will do this as quickly as possible, there will be times when the website and Online Banking will not be available and we apologise for any inconvenience.

Termination of products

Can I terminate my Bond, Online Easy Access Account, Cash ISA or Notice Account?

There is no change to any of the facilities, agreements, terms and conditions or relationships that our customers have with our business today as a result of the sale. However, should you wish to terminate a product, please note the following:

Fixed Rate Bond – You are unable to close your Fixed Rate Bond before the end of the Fixed Term.

FlexiBond – You are unable to close your FlexiBond before the end of the Fixed Term. However, you can make up to two withdrawals for a combined total of 30% of the original deposit subject to providing us with at least 35 days’ notice.

35 and 95 Day Notice Account – You can make withdrawals or close your account subject to providing us with at least 35/95 (as applicable) days’ notice.

Online Easy Access Account – You can close your account using Online Banking without charge or notice. The funds paid away can only be made to the linked nominated account that you set up when you opened the account (usually your current account) or to another Bank of Cyprus UK account in your name.

Instant Access Account – You can close your account by writing to us or sending us a secure message using Online Banking without charge or notice.

Current Account – You can close your account by writing to us or sending us a secure message using Online Banking without charge or notice.

Fixed Rate Cash ISA – You can close your Fixed Rate ISA without charge at the end of the fixed term or before the end of the fixed term subject to the loss of 180 days gross interest. You may get back less than originally deposited if sufficient interest has not accumulated to cover this. When transferring your Fixed Rate Cash ISA to another provider, if you wish to retain the tax-free status of any funds you will need to use your new provider’s “transfer” service.

Variable Rate Cash ISA - You can make withdrawals or close your account with no loss of interest, subject to providing us with at least 35 days’ notice.  You can also make withdrawals or close your account earlier subject to the loss of 35 days gross interest on the amount withdrawn.  When transferring your Variable Rate Cash ISA to another provider, if you wish to retain the tax-free status of any funds you will need to use your new provider’s “transfer” service.

Junior Cash ISA – The ISA rules do not allow for withdrawals from a Junior ISA until the child’s 18th birthday. You can however transfer the whole value of a Junior ISA to another Junior ISA Manager. To transfer a Junior ISA please apply to your chosen new Junior ISA provider who will contact us to arrange and complete the transfer of the Junior ISA. Please note that we will waive the requirement for 95 days’ notice in the event of any such transfer.

More questions?

We have a section for Frequently Asked Questions on our products and services.

Frequently Asked Questions