In Brief: Addleshaw bypasses banks, FSA clears Cheshire merger

ADDLESHAW Goddard has paid £12m in profits to partners ahead of schedule because it believes the money is safer in private hands than a corporate bank account.

The firm wants its 112 equity partners to place the money – ranging from £300,000 to £800,000 per partner – in £50,000 chunks to benefit from the government’s maximum guarantee on personal accounts. The decision was made in September and October when there was widespread concern over the solvency of many banks.

The partners have agreed not to spend the money yet and to return it if the firm needs to bolster cashflow. The payout relates to profits for the 2007-08 financial year.

Addleshaw Goddard, the UK’s 15th largest law firm with offices in Leeds, London and Manchester, described the move as a risk management exercise completed in consultation with its banks. The firm has 180 partners in total, with 96 spread between Manchester and Leeds, although not all of these are equity partners.

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THE Financial Services Authority has approved the merger of Nationwide Building Society with the Cheshire Building Society.

It follows clearance from the Office of Fair trading which said it would not refer the deal to the Competition Commission because it had no competition concerns.

The FSA said: “Having had regard to the information available to it, including the representations made to it and the societies’ responses to those representations and the authority’s enquiries, the authority confirms the transfer of engagements.

The boards of the two societies agreed the merger last month but the deal will not become effective until December 15. The Cheshire will keep its branch network and name.