Building Societies Act 1986
Building Societies Act 1986 (1986 c. 53)
- Building Societies Act 1986 (1986 c. 53)
- PART I FUNCTIONS OF THE Financial Conduct Authority and the Prudential Regulation Authority
- 1 Functions of the Financial Conduct Authority and the Prudential Regulation Authority in relation to building societies.
- 2 Financial provision for Commission.
- 3 Accounts of Commission and audit.
- 4 Annual and other reports.
- Part II Constitution of Building Societies
- Establishment
- 5 Establishment, constitution and powers.
- Making loans
- 6 The lending limit.
- 6A Loans secured on land.
- 6B Loans fully secured on land.
- 6C Discharge of mortgages.
- Raising funds and borrowing
- 7 The funding limit.
- 8 Raising funds and borrowing.
- 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Restrictions on powers
- 9A Restrictions on certain transactions.
- 9B Restriction on creation of floating charges.
- Part III Advances, Loans and Other Assets
- Class 1 advances and class 2 advances secured on land
- 10 Advances secured on land.
- 11 Class 1 and class 2 advances
- 12 Class 1 and class 2 advances: supplementary provisions.
- 13 Security for advances: valuation and supplementary and related provisions.
- Other advances secured on land
- 14 Power to make advances secured on land overseas.
- 14A Power to participate in secured syndicated lending.
- Other commercial assets
- 15 Loans for mobile homes.
- 16 Power to lend to individuals otherwise than by class 1 or class 2 advances etc.
- 17 Power to hold and develop land as commercial asset.
- 18 Power to invest in subsidiaries and other associated bodies.
- 19 Power for Treasury to add powers to hold other descriptions of class 3 assets.
- Commercial asset structure requirements
- 20 Commercial asset structure requirements for building societies.
- Liquid assets
- 21 Liquid assets.
- Liabilities of associated bodies
- 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Other powers
- 23 Power to hedge.
- Part IV Protection of Investors
- Investor Protection Scheme
- 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 25A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 27A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 29A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Other provisions
- 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 32 Special provisions as regards investors.
- 33 Assistance by building societies to other building societies.
- Part V Powers to Provide Services
- 34 Powers to provide financial services or services relating to land.
- 35 Prohibition on linking services.
- Part VI Powers of Control of the appropriate authority
- Powers in relation to principal purpose and nature limits
- 36 Power to direct restructuring of business etc.
- 36A Power to make prohibition orders.
- 37 Powers to petition for winding up etc.
- Power to determine extent of building society powers
- 38 Power to determine building society’s powers.
- 39 The determination: notification, effect, appeal.
- 40 Power to make prohibition orders.
- Powers in relation to authorisation
- 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 42A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 42B Power to direct transfers of engagements or business.
- 42C Variation and revocation of transfer directions
- 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 43A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 43B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- General functions of Commission
- 45AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 45A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Notices, hearings and appeals
- 46A Notices, hearings and appeals.
- 46 Rights of appeal.
- 47 Determination of appeals.
- 48 Costs, procedure and evidence.
- 49 Further appeals on points of law.
- Advertising etc.
- 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 51 Powers to avoid apparent association with other bodies.
- Information
- 52 Powers to obtain information and documents etc.
- 52B Entry of premises under warrant under section 176 of the Financial Services and Markets Act 2000.
- 53A Disclosure of information.
- 54 Information disclosed to FCA or PRA from other sources.
- Inspections, etc
- 55 Investigations on behalf of FCA or PRA .
- 56 Inspections and special meetings: general.
- 57 Inspections: supplementary provisions.
- Part VII Management of Building Societies
- Directors and other officers
- 58 Directors: number.
- 59 Chief executive and secretary.
- 60 Directors: elections and retirements.
- 61 Directors: supplementary provisions as to elections, etc.
- Dealings with directors
- 62 Prohibition of tax-free payments to directors.
- 63 Directors to disclose interests in contracts and other transactions.
- 64 Substantial property transactions involving directors and connected persons.
- 65 Restriction on loans, etc. to directors and persons connected with them.
- 66 Sanctions for breach of s. 65.
- 66A Transactions with directors and persons connected with them.
- 67 Directors, etc, not to accept commissions in connection with loans.
- 68 Records of loans, etc. for directors falling within s. 65.
- Disclosure and record of related businesses
- 69 Disclosure and record of income of related businesses.
- Interpretation
- 70 Interpretation of this Part.
- Part VIII Accounts and Audit
- Accounting records . . .
- 71 Accounting records . . .
- Accounts
- 72 Duty of directors to prepare annual accounts.
- 72A Duty to prepare individual accounts
- 72B Building Societies Act individual accounts
- 72C Form and contents of Building Societies Act individual accounts
- 72D IAS individual accounts
- 72E Duty to prepare group accounts
- 72F Building Societies Act group accounts
- 72G Form and contents of Building Societies Act group accounts
- 72H IAS group accounts
- 72I Consistency of accounts
- 72J Disclosures relating to directors, other officers and employees of society required in notes to accounts
- 72K Disclosures about related undertakings required in notes to accounts
- 72L. Disclosures relating to off-balance-sheet arrangements required in notes to accounts
- 72M. Disclosure of auditor remuneration required in notes to accounts
- 73 Contents and form of annual accounts.
- 74 Duty of directors to prepare annual business statement.
- 75 Directors’ report.
- 75A Business review
- 76 Summary financial statement for members and depositors.
- Auditors and audit of accounts
- 77 Auditors: appointment, tenure ... , etc.
- 78 Auditor’s report .
- 78A Signature of auditors' report
- 78B. Senior statutory auditor
- 78C. Names to be stated in copies of auditor’s report filed or published
- 78D. Circumstances in which names may be omitted
- 79 Auditor’s duties and powers .
- Procedure on completion of accounts
- 80 Signing of balance sheet: documents to be annexed.
- 81 Laying and furnishing accounts, etc., to members , the FCA and the PRA .
- 81A Requirements in connection with publication of accounts
- 81B Interpretation of Part 8
- 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Part IX . . . Disputes
- 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 83A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 85 Settlement of disputes.
- Part X Dissolution, Winding Up, Mergers and Transfer of Business
- Dissolution and winding up
- 86 Modes of dissolution and winding up.
- 87 Dissolution by consent.
- 88 Voluntary winding up.
- 89 Winding up by court: grounds and petitioners.
- 89A. Building society insolvency as alternative order
- 90 Application of winding up legislation to building societies.
- 90A Application of other companies insolvency legislation to building societies.
- 90B Power to alter priorities on dissolution and winding up
- 90C. Application of bank insolvency and administration legislation to building societies
- 90D. Notice to the FCA and the PRA of preliminary steps
- 90E. Disqualification of directors
- 91 Power of court to declare dissolution of building society void.
- 92 Supplementary.
- New business
- 92A Acquisition or establishment of a business.
- Mergers
- 93 Amalgamations.
- 94 Transfer of engagements.
- 95 Mergers; provisions supplementing ss. 93 and 94.
- 96 Mergers: compensation for loss of office and bonuses to members.
- Transfer of business to commercial company
- 97 Transfer of business to commercial company.
- 98 Transfers of business: supplementary provisions.
- 99 Regulated terms: compensation for loss of office, etc.
- 99A Transfers of business: increased remuneration etc.
- 100 Regulated terms etc: distributions and share rights.
- 101 Protective provisions for specially formed successors.
- 102 Transfer regulations.
- 102A Rights of second-named joint shareholders.
- 102B Protection of interests of beneficiaries in the case of trustee account holders.
- 102C Consequences of false declaration.
- 102D Provisions supplementary to sections 102B and 102C.
- Cancellation of registration
- 103 Cancellation of registration.
- Part XI Miscellaneous and Supplementary and Conveyancing Services
- Miscellaneous and supplementary
- 104 Power to amend, etc. to assimilate to company law.
- 104A Registration of charges: application of company law.
- 105 Limited power to anticipate future statutory instrument powers.
- 106 Public file of the society.
- 107 Restriction of use of certain names and descriptions.
- 108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 109 Exemption from stamp duty.
- 109A. Exemptions from stamp duty land tax
- 110 Officers and auditors not to be exempted from liability
- 111 Time limit for commencing proceedings.
- 112 Offences: liability of officers and defence of due diligence.
- 113 Evidence.
- 114 Records.
- 115 Service of notices.
- 115A Deemed agreement to use of web site
- 115B Right to hard copy version
- 115C Other agreed forms of communication
- 116 Form of documents.
- 117 Financial year of building societies.
- 117A Alteration of financial year
- 118 Qualifying asset holding for certain powers.
- 118A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 119 Interpretation.
- 119A. Meaning of “associated undertaking”
- 120 Amendments, repeals, revocations and transitional and saving provisions.
- 121 Power to make transitional and saving provisions.
- 122 Northern Ireland
- 123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Provision of conveyancing services by recognised institutions and practitioners
- 124 Recognition of building societies, other institutions and individuals as suitable to provide conveyancing services.
- General
- 125 Short title.
- 126 Commencement.
- SCHEDULES
- Status
- The First Commissioner, etc.
- Tenure of office of member
- Remuneration and pensions, etc. for part-time members
- Parliamentary disqualification
- Staff
- Proceedings
- Performance of functions
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Instruments
- SCHEDULE 2 Establishment, Incorporation and Constitution of Building Societies
- Part I General
- Requirements for establishment
- The memorandum
- The rules
- Requirements for alteration of purpose, powers and rules
- Membership
- Liability of members
- Joint shareholders
- Joint borrowers
- Use and change of name
- Offences relating to society’s name
- Restrictions on business names
- Use of business names: required disclosure
- Use of business names: supplementary
- Change of principal office
- Societies to supply copies of rules etc.
- Register of members
- Exception to duties to send documents
- Right of members to obtain particulars from the register
- Part II Capacity of society and power of directors to bind it
- Capacity of society not limited by its memorandum
- Power of directors to bind society
- No duty to enquire as to capacity of society etc.
- Powers of central office
- Part III Meetings, Resolutions and Postal Ballots
- Annual general meeting
- Special meeting on members’ requisition
- Failure to comply with members’ requisition
- Length of notice for calling meetings
- Persons entitled to notice of meetings
- Transmission of notice of meeting to an electronic address
- Publication of notice of meeting on a web site
- Members’ entitlement to vote on resolutions
- Proxies
- Right to demand a poll
- Special resolutions
- Borrowing members’ resolutions
- Transfer resolutions
- Members’ right to propose and circulate resolutions
- Members’ resolutions: supplementary provisions
- Postal ballots
- Electronic ballots
- Declarations to be made in proxy and ballot forms
- Advertising requirements in lieu of notice of meetings, etc.
- The prescribed amount
- SCHEDULE 2A Discharge of mortgages: supplementary provisions
- Main provisions
- Application of paragraph 1 to Northern Ireland
- Power to prescribe form of documents
- Part I Preliminary
- Part II Authorisation
- Procedure for authorisation
- Offences in connection with application
- Part III Imposition of Conditions
- Part IV Revocation of Authorisation
- Procedure for revocation
- Part V Supplementary
- Imposition of conditions on appeal
- Notice to directors and chief executives
- Provisions as to sale of mortgaged property
- Discharge of mortgages
- Power to prescribe form of documents
- Constitution
- Appointment and tenure of office
- Allowances
- Proceedings
- Performance of functions
- Accounts, audit and annual report
- SCHEDULE 7 Investors: Special Provisions
- Members or depositors dying
- Receipts by depositors under age
- Preliminary
- Procedure for giving proposed direction
- Procedure for giving different direction
- Different directions on appeal
- Notice to directors and chief executives
- SCHEDULE 8 Powers to Provide Services
- Part I The Services
- Part II General Restrictions On Services
- Part III Restrictions In Relation To Certain Services
- Banking services
- Investment services
- Trusteeship
- Land services
- Part IV Supplementary
- Powers—general
- Powers—specific services
- Banking—particular provisions
- Land services—sanction
- Interpretation
- SCHEDULE 8A Transfer directions: modifications of Part X
- Part I Directions under section 42B(3)
- Preliminary
- Compensation for loss of office
- Statements to members
- Application for confirmation
- Grounds for not confirming transfer
- Part II Directions under section 42B(4)
- Preliminary
- Compensation for loss of office
- Increased remuneration
- Statements to members
- Application for confirmation
- Grounds for not confirming transfer
- SCHEDULE 9 Directors: Requisite Particulars of Restricted Transactions
- Preliminary
- The requisite particulars
- SCHEDULE 10 Requisite Particulars of Income or Related Businesses
- Part I Requisite Particulars Where no Adoption of Part II
- Conveyancers
- Valuers and surveyors
- Accountants
- Insurance agents, etc.
- Part II Requisite Particulars on Adoption of This Part
- Conveyancers
- Valuers and surveyors
- Accountants
- Insurance agents, etc.
- Part III Supplementary
- Power to prescribe bands for Part II particulars
- Interpretation
- SCHEDULE 10A Disclosures about directors, other officers and employees in notes to accounts
- Part 1 Emoluments of and dealings with directors and other officers
- Aggregate amount of director’s remuneration etc
- Details of individual directors' remuneration etc
- Excess retirement benefits of directors and past directors
- Compensation to directors for loss of office
- Sums paid to third parties in respect of directors' services
- Supplementary provisions regarding directors' remuneration
- Interpretation of provisions regarding directors remuneration
- Directors' loans and transactions
- Disclosure of auditors' remuneration
- Persons who are to be regarded as associates of a society’s auditors
- PART 2 Information about employees
- SCHEDULE 10B Disclosures about related undertakings required in note to accounts
- PART 1 Societies not required to prepare consolidated group accounts
- Subsidiary undertakings
- Holdings in subsidiary undertakings
- Financial information about subsidiary undertakings
- Financial years of subsidiary undertakings
- Significant holdings in undertakings other than subsidiary undertakings
- Construction of references to shares held by society
- PART 2 Societies required to prepare consolidated group accounts
- Subsidiary undertakings
- Holdings in subsidiary undertakings
- Financial information about subsidiary undertakings not included in the consolidation
- Associated undertakings
- Other significant holdings of society or group
- Construction of references to shares held by society or group
- Interpretation: general
- SCHEDULE 10C Disclosure of auditor remuneration etc required in notes to accounts
- Disclosure required
- Types of service
- Disclosure not required of remuneration for certain services provided by distant associate
- Duty of auditor to supply information
- Meaning of “associate” and “distant associate” of auditor
- Interpretation
- SCHEDULE 11 Auditors: Appointment, Tenure...
- Appointment
- Qualification and disqualification of auditors
- Tenure
- Maximum engagement period: transitional arrangements
- Removal of auditors
- Application to court to remove auditor from office
- Removal of auditor on improper grounds
- Resignation of auditors
- Duty of auditor to notify appropriate audit authority
- Duty of building society to notify appropriate audit authority
- Interpretation
- Part I Matters to be Provided for in Schemes
- Administration
- The adjudicator
- Scope of scheme
- Functions of adjudicator
- Determinations and their effects
- Reports by investigators to administering body
- Amendment or revocation of scheme
- Accession to membership
- Withdrawal from membership
- Part II Requirements for Recognised Schemes:Matters of Complaint
- Share accounts
- Deposit accounts
- Borrowing members: class 1 or class 2 advances
- Borrowers: mobile home loans
- Borrowers: other loans
- Money transmission services
- Foreign exchange facilities
- Agency payments and receipts
- Provision of credit
- Part III Minimum Requirements for Recognised Schemes: Other Provisions
- Grounds of complaint
- Permissible exclusions from investigation
- Functions of adjudicator
- Effect of determinations and their communication
- Reports by adjudicator to administering body
- Publication
- Preliminary
- The register of recognised schemes
- Procedure for recognition: Commission’s initiative
- Procedure for recognition: submission by societies
- Procedure on accession to schemes
- Withdrawal of recognition
- Withdrawal from membership
- SCHEDULE 14 Settlement of Disputes
- Part I Proceedings in Court
- Jurisdiction of the court
- Right of FCA and PRA to be heard
- Part II Arbitration
- Circulation of election addresses, resolutions and statements
- Calling of special meeting
- Procedure on a reference to arbitration
- Access to register of members
- Disputes cognizable under a scheme
- General
- SCHEDULE 15 Application of Companies Winding Up Legislation to Building Societies
- Part I General Mode of Application
- Part II Modified Application of Insolvency Act 1986
- Preliminary
- Members of a building society as contributories in winding up
- Voluntary winding up
- Winding up by the court
- Winding up: general
- Penal provisions
- Protection of supplies
- Preferential debts
- Insolvency practitioners: their qualification and regulation
- Part III Modified application of Insolvency (Northern Ireland) Order 1989
- Preliminary
- Members of a building society as contributories in winding up
- Voluntary winding up
- Winding up by the High Court
- Winding up: general
- Penal provisions
- Protection of supplies
- Preferential debts
- Insolvency practitioners: their qualification and regulation
- Part IV Dissolution of Building Society wound up (England and Wales, Scotland and Northern Ireland)
- Insolvency rules and fees: England and Wales and Scotland
- Insolvency rules and fees: Northern Ireland
- SCHEDULE 15A Application of other companies insolvency legislation to building societies
- Part I General mode of application
- Part II Modified Application of Parts I to III, 6, 7, 12 and 13 of Insolvency Act 1986
- Preliminary
- Voluntary arrangements
- Administration orders
- Receivers and managers
- Protection of supplies
- Insolvency practitioners: their qualification and regulation
- Part III Modified Application of Parts II, III, 4 and 12 of Insolvency (Northern Ireland) Order 1989
- Preliminary
- Voluntary arrangements
- Administration orders
- Receivers and managers
- Protection of supplies
- Insolvency practitioners: their qualification and regulation
- SCHEDULE 16 Mergers: Supplementary Provisions
- Part I Issue of Statements to Members
- Part II Notification of Proposals for Merger
- Preliminary
- Duty to notify members
- Duty to notify appropriate authority
- Penalty
- Part III Confirmation by appropriate authority : Procedure
- SCHEDULE 17 Transfers of Business: Supplementary Provisions
- PART I Issue of statement or summary to members
- Preliminary
- Duty to send transfer statements or summaries to members
- PART IA Notification of proposals for transfers of business
- Preliminary
- Duty to notify members
- Duty to notify appropriate authority
- Penalty
- Part II Confirmation by appropriate authority : Procedure
- SCHEDULE 18 Amendments of Enactments
- Part I United Kingdom
- Bankers’ Books Evidence Act 1879 (c.11)
- Land Registration Act 1925 (c.21)
- Payment of Wages Act 1960 (c. 37)
- Trustee Investments Act 1961 (c. 62)
- Stock Transfer Act 1963 (c.18)
- Industrial and Provident Societies Act 1965 (c.12)
- Income and Corporation Taxes Act 1970 (c.10)
- Banking and Financial Dealings Act 1971 (c.80)
- Local Government Act 1972 (c.70)
- Consumer Credit Act 1974 (c. 39)
- Solicitors Act 1974 (c.47)
- Home Purchase Assistance and Housing Corporation Guarantee Act 1978 (c.27)
- Banking Act 1979 (c.37)
- Charging Orders Act 1979 (c.53)
- Finance Act 1982 (c.39)
- Companies Act 1985 (c.6)
- Insolvency Act 1985 (c.65)
- Housing Act 1985 (c. 68)
- Housing Associations Act 1985 (c.69)
- Part II Northern Ireland
- Industrial and Provident Societies Act (Northern Ireland)1969 (c.24 N.I.)
- Payment of Wages Act (Northern Ireland 1970
- Private Streets (Northern Ireland) Order 1980 (S.I. 1980/1086 (N.I.12))
- Housing (Northern Ireland) Order 1981 (S.I. 1981/156 (N.I.3))
- Property (Discharge of Mortgage by Receipt) (Northern Ireland) Order 1983 (S.I. 1983/766 (N.I.9))
- Housing (Northern Ireland) Order 1983 (S.I. 1983/1118 (N.I.15))
- Companies (Northern Ireland) Order 1986
- SCHEDULE 19 Repeals and Revocations
- Part I Repeals: General
- Part II Revocation Extending to Great Britain
- PART III Repeals and Revocations Extending Only to Northern Ireland
- SCHEDULE 20 Transitional and Saving Provisions
- Preliminary
- Adoption of powers and alteration of rules
- Default powers
- Registration with existing authorities
- Authorisation under existing enactments
- Anticipation of powers: declaratory provision
- Unlawful anticipation of powers
- Penalty for breach of undertaking
- Penalty for false declaration
- Powers of central office
- Permissible securities for advances
- Existing business names
- Directors in office
- Existing financial years
- Qualifying assets
- Provision of conveyancing services for building societies
- SCHEDULE 21 Provision of Conveyancing Services by Recognised Institutions and Practitioners
- ...
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