The Financial Services and Markets Act 2000 (Controllers) (Exemption) (No. 2) Order 2001

Reducing control over an authorised building society

3.—(1) In any case where a controller of an authorised building society—

(a) proposes to take a step which would result in his ceasing to have control of the kind mentioned in paragraph (a) of subsection (4) of section 179 of the Act (holding of shares) over that society, or

(b) without himself taking any such step, has ceased to have such control,

the controller is exempt from any obligation imposed by section 190 of the Act to notify the Authority of his proposal or that cessation unless paragraph (2) applies.

(2) This paragraph applies if the proposed step would result in the controller ceasing, or the controller has ceased, to hold 10% or more of the capital of that authorised building society.

(3) In any case where a controller of an authorised building society—

(a) proposes to take a step which would result in his reducing his control over that society in the circumstances mentioned in paragraph (a) of subsection (1) of section 181 of the Act (decrease in percentage of shares), or

(b) without himself taking any such step, has reduced his control in those circumstances,

the controller is exempt from any obligation imposed by section 190 of the Act to notify the Authority of his proposal or that reduction unless paragraph (4) applies.

(4) This paragraph applies if the proposed step would result in the controller reducing, or the controller has reduced, his holding of the capital of that authorised building society by any of the steps mentioned in section 181(2) of the Act.

(5) In paragraphs (2) and (4), “controller” means—

(a) the controller;

(b) any of the controller’s associates; or

(c) the controller and any of his associates.