The Credit Institutions (Protection of Depositors)Regulations 1995

Enforcement: building societies

51.—(1) In relation to any building society, subsection (1) of section 42 of the 1986 Act(1) (imposition of conditions on authorisation) shall have effect as if the reference to protecting the investments of the society’s shareholders or depositors included references to—

(a) securing the payment by the society of unpaid contributions; and

(b) securing that the society complies with any obligation imposed by or under the law of another EEA State in connection with its participation in a scheme for the protection of depositors or investors which is in force in that State.

(2) In subsection (1A) of section 43 of the 1986 Act(2) (revocation of authorisation)—

(a) after paragraph (b) there shall be inserted the following paragraph—

“(bb) it appears to the Commission that the society has failed to comply with any obligation imposed on it by or under Part IV of this Act;;”

(b) in paragraph (e), after the words “the Banking Coordination (Second Council Directive) Regulations 1992” there shall be inserted the words “or the Credit Institutions (Protection of Depositors) Regulations 1995”; and

(c) in paragraph (f), after the words “the Second Council Directive” there shall be inserted the words “or Directive 94/19/EC on deposit-guarantee schemes”.

(3) Where the Commission—

(a) is informed by the Investor Protection Board of an unpaid contribution of a building society; or

(b) is informed by a supervisory authority in another EEA State that a building society is failing to comply with such an obligation as is mentioned in paragraph (1)(b) above,

the Commission shall, after such consultation with that Board or supervisory authority as it considers appropriate, consider whether to exercise its powers under section 42 or 43 of the 1986 Act.

(4) In this regulation “unpaid contribution”, in relation to a building society, means any amount specified in a notice served on the institution under subsection (8) of section 26 of the 1986 Act which remains unpaid after the period of 21 days mentioned in that subsection.

(1)

1986 c. 53; section 42 was amended by the Banking Coordination (Second Council Directive) Regulations 1992 (S.I. 1992/3218), regulation 70.

(2)

1986 c. 53; section 43 was amended by the Banking Coordination (Second Council Directive) Regulations 1992 (S.I. 1992/3218), regulation 71.