Building Societies Act 1986

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

5 Establishment, constitution and powers.

6The lending limit.

6A Loans secured on land.

6B Loans fully secured on land.

6C Discharge of mortgages.

Raising funds and borrowing

7The funding limit.

8 Raising funds and borrowing.

9 Constitution of Building Societies

Restrictions on powers

9ARestrictions on certain transactions.

9BRestriction 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.

21 Liquid assets.

Liabilities of associated bodies

22 Advances, Loans and Other Assets

23 Power to hedge.

Part IV Protection of Investors

Investor Protection Scheme

24 Protection of Investors

25 Protection of Investors

25A Protection of Investors

26 Protection of Investors

27 Protection of Investors

27A Protection of Investors

28 Protection of Investors

29 Protection of Investors

29A Protection of Investors

30 Protection of Investors

Other provisions

31 Protection of Investors

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.

35Prohibition 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 Powers of Control of the Commission

42 Powers of Control of the Commission

42A Powers of Control of the Commission

42B Power to direct transfers of engagements or business.

42CVariation and revocation of transfer directions

43 Powers of Control of the Commission

43A Powers of Control of the Commission

43B Powers of Control of the Commission

44 Powers of Control of the Commission

45 Powers of Control of the Commission

General functions of Commission

45AA Powers of Control of the Commission

45A Powers of Control of the Commission

Notices, hearings and appeals

46A Notices, hearings and appeals.

46Rights of appeal.

47 Determination of appeals.

48 Costs, procedure and evidence.

49 Further appeals on points of law.

Advertising etc.

50 Powers of Control of the Commission

51 Powers to avoid apparent association with other bodies.

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.

54Information disclosed to FCA or PRA from other sources.

Inspections, etc

55Investigations 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.

70 Interpretation of this Part.

Part VIII Accounts and Audit

Accounting records . . .

71 Accounting records . . .

72 Duty of directors to prepare annual accounts.

72ADuty to prepare individual accounts

72BBuilding Societies Act individual accounts

72CForm and contents of Building Societies Act individual accounts

72D IAS individual accounts

72EDuty to prepare group accounts

72FBuilding Societies Act group accounts

72GForm and contents of Building Societies Act group accounts

72H IAS group accounts

72IConsistency of accounts

72J Disclosures relating to directors, other officers and employees of society required in notes to accounts

72KDisclosures about related undertakings required in notes to accounts

72LDisclosures relating to off-balance-sheet arrangements required in notes to accounts

72MDisclosure 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

78BSenior statutory auditor

78CNames to be stated in copies of auditor’s report filed or published

78DCircumstances 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

81BInterpretation of Part 8

82 Accounts and Audit

Part IX. . . Disputes

83. . . Disputes

83A. . . Disputes

84. . . Disputes

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.

89ABuilding society insolvency as alternative order

90 Application of winding up legislation to building societies.

90A Application of other companies insolvency legislation to building societies.

90BPower to alter priorities on dissolution and winding up

90CApplication of bank insolvency and administration legislation to building societies

90DNotice to the FCA and the PRA of preliminary steps

90EDisqualification of directors

91 Power of court to declare dissolution of building society void.

92 Supplementary.

92A Acquisition or establishment of a business.

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

104Power 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 Miscellaneous and Supplementary and Conveyancing Services

109 Exemption from stamp duty.

109AExemptions 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.

115 Service of notices.

115ADeemed agreement to use of web site

115BRight to hard copy version

115COther agreed forms of communication

116 Form of documents.

117 Financial year of building societies.

117AAlteration of financial year

118 Qualifying asset holding for certain powers.

118A Miscellaneous and Supplementary and Conveyancing Services

119 Interpretation.

119AMeaning of “associated undertaking”

120 Amendments, repeals, revocations and transitional and saving provisions.

121 Power to make transitional and saving provisions.

122 Northern Ireland

123 Miscellaneous and Supplementary and Conveyancing Services

Provision of conveyancing services by recognised institutions and practitioners

124 Recognition of building societies, other institutions and individuals as suitable to provide conveyancing services.

125 Short title.

126 Commencement.

1The Commission shall be a body corporate.

The First Commissioner, etc.

2The person who holds office as Chief Registrar may also...

Tenure of office of member

3(1) Subject to the provisions of this paragraph, a person...

4No person who has attained the age of 70 years...

Remuneration and pensions, etc. for part-time members

5The Commission shall pay to its part-time members such fees...

6(1) If the Treasury so determines in the case of...

Parliamentary disqualification

7(1) In part II of Schedule 1 to the House...

8The Commission may appoint such staff as the chairman of...

9The quorum of the Commission and the arrangements relating to...

10The validity of any proceedings of the Commission shall not...

Performance of functions

11(1) With the exception 34specified in sub-paragraph (2) below, the...

12The Statutory Instruments Act 1946 shall apply to all powers...

13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14(1) The fixing of the common seal of the Commission...

15(1) A document purporting to be duly executed under the...

SCHEDULE 2Establishment, Incorporation and Constitution of Building Societies

Requirements for establishment

1(1) Any ten or more persons may establish a society...

2(1) The memorandum of a building society shall state the...

3(1) The rules of a building society shall provide for...

Requirements for alteration of purpose, powers and rules

4(1) A building society may by special resolution alter its...

5(1) The rules of a building society shall provide that...

Liability of members

6(1) The liability at any time of a shareholding member...

Joint shareholders

7(1) Two or more persons may jointly hold shares in...

Joint borrowers

8(1) Where a loan secured on land is made by...

Use and change of name

9(1) The common seal of a building society shall bear...

Offences relating to society’s name

10(1) If a building society does not—

Restrictions on business names

10A(1) This paragraph and paragraph 10B below apply where a...

Use of business names: required disclosure

10B(1) Paragraph 9(2A) above shall have effect as if after...

Use of business names: supplementary

10C(1) A building society which contravenes paragraph 10A(2) above shall...

Change of principal office

11(1) A building society may change its principal office—

Societies to supply copies of rules etc.

12(1) A building society shall, on demand, give a copy...

Register of members

13(1) Every building society shall maintain a register of members...

Exception to duties to send documents

14(1) A building society is not obliged by any provision...

Right of members to obtain particulars from the register

15(1) At any time when a building society—

Part IICapacity of society and power of directors to bind it

Capacity of society not limited by its memorandum

16(1) The validity of an act done by a building...

Power of directors to bind society

17(1) In favour of a person dealing with a building...

No duty to enquire as to capacity of society etc.

18(1) A party to a transaction with a building society...

Powers of central office

19(1) The central office, on receiving from a building society...

Part IIIMeetings, Resolutions and Postal Ballots

Annual general meeting

20(1) Subject to sub-paragraph (2) below, every building society shall...

Special meeting on members’ requisition

20A(1) On a members’ requisition, a building society shall—

Failure to comply with members’ requisition

20B(1) This paragraph applies where a members’ requisition is deposited...

Length of notice for calling meetings

21(1) Any provision contained in the rules of a building...

Persons entitled to notice of meetings

22(1) Subject to the provisions of this Part of this...

Transmission of notice of meeting to an electronic address

22A(1) Where a notice of a meeting of a society...

Publication of notice of meeting on a web site

22B(1) A requirement under any provision of this Act to...

Members’ entitlement to vote on resolutions

23(1) A member of a building society is entitled to...

24(1) A member of a building society who is entitled...

Right to demand a poll

25(1) Any provision contained in the rules of a building...

Special resolutions

26No resolution of a building society shall be passed as...

27(1) A resolution of a building society shall be a...

27AA resolution of a building society shall be a shareholding...

Borrowing members’ resolutions

28No resolution of a building society shall be passed as...

29(1) A resolution of a building society shall be a...

Transfer resolutions

30(1) The transfer resolutions required for the purposes of section...

Members’ right to propose and circulate resolutions

31(1) If at least the requisite number of qualified members...

Members’ resolutions: supplementary provisions

32(1) Notice of a resolution given under paragraph 31(1) above...

33(1) The rules of a building society may provide for...

Electronic ballots

33A(1) Where— (a) the rules of a building society provide...

Declarations to be made in proxy and ballot forms

34(1) If a member of a building society who purports...

34A(1) Nothing in this Part of this Schedule is to...

Advertising requirements in lieu of notice of meetings, etc.

35(1) The advertising requirements referred to in paragraph 14 above,...

The prescribed amount

36(1) For the purposes of this Part of this Schedule,...

SCHEDULE 2A Discharge of mortgages: supplementary provisions

Main provisions

1(1) When all money intended to be secured by a...

Application of paragraph 1 to Northern Ireland

2(1) In its application to Northern Ireland, paragraph 1 above...

Power to prescribe form of documents

3(1) The Treasury may make rules for prescribing anything authorised...

Part I Preliminary

1In this Schedule— “authorisation” means authorisation under section 9 or...

Part II Authorisation

Procedure for authorisation

2(1) An application for authorisation— (a) shall be made in...

Offences in connection with application

3(1) Any building society which furnishes any information or makes...

Part III Imposition of Conditions

4(1) If the Commission proposes to impose conditions it shall...

5(1) This paragraph applies where the Commission has decided to...

Part IV Revocation of Authorisation

Procedure for revocation

6(1) If the Commission proposes to revoke a society’s authorisation...

7(1) This paragraph applies where the Commission proposes, instead of...

8(1) This paragraph applies where the Commission has decided, instead...

Part V Supplementary

Imposition of conditions on appeal

9(1) The modifications of the provisions of Part III of...

Notice to directors and chief executives

10Where any provision of this Schedule requires notice of any...

Provisions as to sale of mortgaged property

1(1) Where any land has been mortgaged to a building...

Discharge of mortgages

2(1) When all money intended to be secured by a...

Power to prescribe form of documents

3(1) The Chief Registrar may make rules for prescribing anything...

1(1) The Board shall consist of seven members as follows,...

Appointment and tenure of office

2(1) Subject to the following provisions of this paragraph a...

3The Board shall pay to each member such allowances in...

4(1) The Board shall determine its own procedure, including the...

5(1) The fixing of the common seal of the Board...

Performance of functions

5AThe Board may authorise— (a) any member or members of...

Accounts, audit and annual report

6(1) The Board may determine its own financial year.

1(1) The following provisions of this Schedule have effect for...

2(1) Where any persons hold an investment in a building...

3Where an investment is held on trust for any person...

4(1) Except in the case of a partnership, where two...

5Where an investment is made by a person whose business...

6The Board may decline to make any payment under section...

7In this Schedule “jointly entitled” means— (a) in England and...

8In the application of this Schedule in relation to investments...

SCHEDULE 7 Investors: Special Provisions

Members or depositors dying

1(1) The provisions of this paragraph have effect where a...

Receipts by depositors under age

2Any receipt or acknowledgment given to a building society by...

1In this Schedule “direction” means a direction under section 36(3),...

Procedure for giving proposed direction

2(1) If the Commission proposes to give a direction, it...

Procedure for giving different direction

3(1) This paragraph applies where the Commission has decided to...

Different directions on appeal

4(1) The modifications of the provisions of paragraph 2 and...

Notice to directors and chief executives

5Where any provision of this Schedule requires notice of any...

SCHEDULE 8 Powers to Provide Services

Part I The Services

1Banking services.

2Investment services.

3Insurance services.

6Land services.

Part II General Restrictions On Services

1Subject to paragraphs 2, 3, 4 and 5 below, no...

2Paragraph 1 above shall not be taken to prevent—

3Where, as part of the power to provide banking services,...

4The right to recover any sum overdrawn (with or without...

5Acquiring or holding relevant investments shall not be treated as...

6Paragraph 1 above shall not be taken to prevent the...

Part III Restrictions In Relation To Certain Services

Banking services

1In relation to the power to provide banking services—

Investment services

2In relation to the power to provide investment services—

3In relation to the power to provide the service of...

4In relation to the power to provide land services—

5No employee of a building society, a subsidiary or other...

Part IV Supplementary

Powers—general

1Any power derived from this Schedule to perform any activity...

Powers—specific services

2Without prejudice to the general scope of any service specified...

Banking—particular provisions

3(1) A building society shall, so far as regards the...

4Where an account of a person with a building society...

5(1) For the purposes of paragraph 1(f) and (g) of...

Land services—sanction

6If a person performs any service in contravention of paragraph...

7This Schedule is to be construed as relating only to...

8In this Schedule— “arranging”, in relation to the performance of...

SCHEDULE 8A Transfer directions: modifications of Part X

Part I Directions under section 42B(3)

1This Part of this Schedule applies where a direction is...

Compensation for loss of office

2(1) The consent of the appropriate authority shall be sufficient...

Statements to members

3(1) The following provisions of this paragraph shall apply in...

Application for confirmation

4No application for confirmation by the appropriate authority of the...

Grounds for not confirming transfer

5Section 95 shall apply as if— (a) for paragraphs (a)...

Part II Directions under section 42B(4)

6This Part of this Schedule applies where a direction is...

Compensation for loss of office

7(1) The consent of the appropriate authority shall be sufficient...

Increased remuneration

8If the appropriate authority consents to the inclusion of any...

Statements to members

9(1) The following provisions of this paragraph shall apply in...

Application for confirmation

10No application for confirmation by the appropriate authority of the...

Grounds for not confirming transfer

11Section 98 shall apply as if— (a) for paragraphs (a)...

SCHEDULE 9 Directors: Requisite Particulars of Restricted Transactions

1In this Schedule— “the financial year” means the financial year...

The requisite particulars

2(1) The particulars of a restricted transaction or arrangement required...

SCHEDULE 10 Requisite Particulars of Income or Related Businesses

Part I Requisite Particulars Where no Adoption of Part II

1Where the business associate of the building society provides conveyancing...

Valuers and surveyors

2Where the business associate of the building society provides the...

3Where the business associate of the building society provides accountancy...

Insurance agents, etc.

4Where the business associate of the building society arranges for...

Part II Requisite Particulars on Adoption of This Part

5Where the business associate of the building society provides conveyancing...

Valuers and surveyors

6Where the business associate of the building society provides the...

7Where the business associate of the building society provides accountancy...

Insurance agents, etc.

8Where the business associate of the building society arranges for...

Part III Supplementary

Power to prescribe bands for Part II particulars

9(1) The Treasury may by order prescribe, for the purposes...

10(1) In this Schedule— “administrative services” means services falling within...

SCHEDULE 10ADisclosures about directors, other officers and employees in notes to accounts

Part 1Emoluments of and dealings with directors and other officers

Aggregate amount of director’s remuneration etc

1(1) The following must be shown— (a) the aggregate amount...

1A(1) This paragraph applies for the purposes of paragraph (a)...

Details of individual directors' remuneration etc

2(1) There must be shown in respect of each director...

Excess retirement benefits of directors and past directors

3(1) Subject to sub-paragraph (2), there must be shown the...

Compensation to directors for loss of office

4(1) There must be shown the amount of any compensation...

Sums paid to third parties in respect of directors' services

5(1) There must be shown the aggregate amount of any...

Supplementary provisions regarding directors' remuneration

6(1) The following applies with respect to the amounts to...

7(1) The amounts to be shown for any financial year...

8(1) Where the chief executive of the society is not...

Interpretation of provisions regarding directors remuneration

9(1) Sub-paragraphs (2) and (3) apply for the interpretation of...

Directors' loans and transactions

10(1) This paragraph applies, subject to sub-paragraph (4), in relation...

Disclosure of auditors' remuneration

11. . . . . . . . . ....

Persons who are to be regarded as associates of a society’s auditors

12. . . . . . . . . ....

PART 2Information about employees

13(1) The following information with respect to the employees of...

SCHEDULE 10BDisclosures about related undertakings required in note to accounts

PART 1Societies not required to prepare consolidated group accounts

Subsidiary undertakings

1(1) The following information must be given where at the...

Holdings in subsidiary undertakings

2(1) There must be stated in relation to shares of...

Financial information about subsidiary undertakings

3(1) There must be disclosed with respect to each subsidiary...

Financial years of subsidiary undertakings

4Where— (a) disclosure is made under paragraph 3(1) with respect...

Significant holdings in undertakings other than subsidiary undertakings

5(1) The information required by paragraphs 6 and 7 must...

6(1) The name of the undertaking must be stated.

7(1) There must also be stated– (a) the aggregate amount...

Construction of references to shares held by society

8(1) References in this Part of this Schedule to shares...

PART 2Societies required to prepare consolidated group accounts

Subsidiary undertakings

9(1) The following information must be given with respect to...

Holdings in subsidiary undertakings

10(1) The following information must be given with respect to...

Financial information about subsidiary undertakings not included in the consolidation

11(1) There must be shown with respect to each subsidiary...

Associated undertakings

12(1) The following information must be given where an undertaking...

Other significant holdings of society or group

13(1) The information required by paragraphs 14 and 15 must...

14(1) The name of the undertaking must be stated.

15(1) There must also be stated– (a) the aggregate amount...

16(1) The information required by paragraphs 17 and 18 must...

17(1) The name of the undertaking must be stated.

18(1) There must also be stated– (a) the aggregate amount...

Construction of references to shares held by society or group

19(1) References in this Part of this Schedule to shares...

Interpretation: general

20In this Schedule, “group” means a building society and its...

SCHEDULE10CDisclosure of auditor remuneration etc required in notes to accounts

Disclosure required

1(1) The following must be shown— (a) the amount of...

Types of service

2The types of service in respect of which disclosure is...

Disclosure not required of remuneration for certain services provided by distant associate

3(1) Disclosure is not required of remuneration receivable for the...

Duty of auditor to supply information

4The auditor of a building society must supply the directors...

Meaning of “associate” and “distant associate” of auditor

5(1) This paragraph defines what is meant in this Schedule...

6In this Schedule— “associate of the society” means— any subsidiary...

SCHEDULE 11 Auditors: Appointment, Tenure...

1(1) The first auditor of a building society may be...

2The directors, or the building society in general meeting, may...

3(1) If at any annual general meeting of a building...

3A(1) Any term in a contract which, in relation to...

3B(1) This paragraph applies to the appointment of an auditor...

3C(1) This paragraph applies to the appointment of an auditor...

3D(1) A person who has been, or will have been,...

3DA(1) If— (a) a building society appoints, or purports to...

3E(1) Where a person is auditor of a building society...

4(1) A resolution at a general meeting of a building...

Qualification and disqualification of auditors

5 Auditors: Appointment, Tenure...

5A. . . . . . . . . ....

5BMaximum engagement period: transitional arrangements

Removal of auditors

6(1) A building society may by resolution in general meeting...

6ZAApplication to court to remove auditor from office

Removal of auditor on improper grounds

6A(1) Where an auditor of a building society is removed...

Resignation of auditors

7(1) An auditor of a building society may resign his...

8(1) Where an auditor’s notice of resignation contains a statement...

Duty of auditor to notify appropriate audit authority

8A(1) Where an auditor of a building society ceases for...

Duty of building society to notify appropriate audit authority

8B(1) Where an auditor ceases to hold office before the...

8C(1) In this Schedule— “ appropriate audit authority ” means—...

9In the application of this Schedule to Scotland, references to...

Part I Matters to be Provided for in Schemes

The matters for which provision is, subject to Part III...

1The establishment and functioning of an independent body (whether corporate...

2The identity of the members.

3The manner in which the expenses of the scheme are...

The adjudicator

4The appointment of an independent adjudicator to conduct investigations under...

Scope of scheme

5The matters action in relation to which is to be...

Functions of adjudicator

6The duty of the adjudicator to investigate, and make determinations...

7The powers of, and procedure to be followed in the...

8The powers of the adjudicator on the making of determinations....

Determinations and their effects

9The extent to which determinations are binding.

10The manner in which determinations are to be communicated and...

Reports by investigators to administering body

11The making to the body administering the scheme of regular...

Amendment or revocation of scheme

12The manner of amending or revoking the scheme.

Accession to membership

13Accession to membership of other societies.

Withdrawal from membership

14Withdrawal from membership.

Part II Requirements for Recognised Schemes:Matters of Complaint

1The operation or termination of a share account and the...

Deposit accounts

2The operation or termination of a deposit account and the...

Borrowing members: class 1 or class 2 advances

3The operation or termination of the account of a member...

Borrowers: mobile home loans

4The operation or termination of the account of a borrower...

Borrowers: other loans

5The operation or termination of the account of a borrower...

Money transmission services

6The terms on which are provided, the operation of, or...

Foreign exchange facilities

7The terms on which are provided, the operation of, or...

Agency payments and receipts

8The terms on which payments are made or received as...

Provision of credit

9The operation or termination of the account of a borrower...

Part III Minimum Requirements for Recognised Schemes: Other Provisions

Grounds of complaint

1(1) The grounds for making action by a building society...

Permissible exclusions from investigation

2A scheme must not exclude action from investigation on any...

Functions of adjudicator

3A scheme must, as regards the duties and powers attached...

4(1) Subject to any provision made in pursuance of sub-paragraph...

5(1) Subject to sub-paragraph (2) below, a scheme must confer...

Effect of determinations and their communication

6(1) Subject to any provision made in pursuance of sub-paragraph...

7A scheme must impose on the adjudicator an obligation not...

Reports by adjudicator to administering body

8A scheme must require reports by the adjudicator as to...

9(1) A scheme must permit the body administering the scheme...

1For the purposes of this Schedule, a scheme— “qualifies for...

2(1) The function of the Commission of granting recognition of...

The register of recognised schemes

3(1) The central office shall maintain a register of recognised...

Procedure for recognition: Commission’s initiative

4(1) If it appears to the Commission, from its own...

Procedure for recognition: submission by societies

5(1) Submission by or on behalf of building societies of...

Procedure on accession to schemes

6(1) A building society or connected undertaking of a building...

Withdrawal of recognition

7(1) The Commission may withdraw its recognition of a scheme...

8(1) If the Commission proposes at any time to withdraw...

9Withdrawal of recognition by the Commission shall take effect as...

Withdrawal from membership

10(1) A building society or connected undertaking of a building...

SCHEDULE 14 Settlement of Disputes

Part I Proceedings in Court

Jurisdiction of the court

1(1) No court other than the High Court or, in...

2The court may hear and determine a dispute falling within...

Right of FCA and PRA to be heard

3(1) Any person who institutes proceedings in the court in...

Part II Arbitration

Circulation of election addresses, resolutions and statements

4(1) If the rules of the society so provide, any...

Calling of special meeting

4AIf the rules of the society so provide, any dispute...

Procedure on a reference to arbitration

5(1) This paragraph has effect in relation to an arbitration...

Access to register of members

6(1) Any dispute as to the rights of a member...

Disputes cognizable under a scheme

7 Settlement of Disputes

8In this Part of this Schedule, in relation to an...

SCHEDULE 15 Application of Companies Winding Up Legislation to Building Societies

Part I General Mode of Application

1The enactments which comprise the companies winding up legislation (referred...

1AIn this Schedule— “deposit” means rights of the kind described...

2Subject to the following provisions of this Schedule, the enactments...

3(1) The enactments shall, in their application to building societies,...

4(1) Where any of the enactments as applied to building...

5Any enactment which specifies a money sum altered by order...

Part II Modified Application of Insolvency Act 1986

Parts IV , 6, 7, 12 and 13 and Schedule 10

6In this Part of this Schedule, Part IV of the...

6ZAParts 4, 6, 7 and 12 of, and Schedule 10...

6AIn the following provisions of the Act a reference to...

Members of a building society as contributories in winding up

7(1) Section 74 (liability of members) of the Act is...

8Sections 75 to 78 and 83 in Chapter I of...

9(1) Section 79 (meaning of “contributory”) of the Act does...

Voluntary winding up

10(1) Section 84 of the Act does not apply.

11In subsection (1) of section 101 (appointment of liquidation committee)...

12(1) Section 107 (distribution of property) of the Act does...

13Sections 110 and 111 (liquidator accepting shares, etc. as consideration...

14Section 116 (saving for certain rights) of the Act shall...

Winding up by the court

15In sections 117 (High Court and county court jurisdiction) and...

16(1) Section 122 (circumstances in which company may be wound...

17Section 124 (application for winding up) of the Act does...

18(1) In section 125 (powers of court on hearing of...

19Section 126 (power of court, between petition and winding up...

20If, before the presentation of a petition for the winding...

21(1) Section 130 of the Act (consequences of winding-up order)...

22Section 140 (appointment of liquidator by court in certain circumstances)...

23In the application of sections 141(1) and 142(1) (liquidation committees),...

23ASection 143 (general functions of liquidator in winding up by...

24The conditions which the court may impose under section 147...

25Section 154 (adjustment of rights of contributories) of the Act...

26 Application of Companies Winding Up Legislation to Building Societies

Winding up: general

27Section 187 (power to make over assets to employees) of...

28(1) In section 201 (dissolution: voluntary winding up) of the...

29In section 205 (dissolution: winding up by the court) of...

Penal provisions

30Sections 216 and 217 of the Act (restriction on re-use...

31(1) Sections 218 and 219 (prosecution of delinquent officers) of...

32(1) Where a report is made to the prosecuting authority...

Protection of supplies

32ASection 233B of the Act (protection of supplies of goods...

Preferential debts

33Section 387 (meaning in Schedule 6 of “the relevant date”)...

Insolvency practitioners: their qualification and regulation

33ASection 390 of the Act (persons not qualified to act...

33B(1) In the following provisions of the Act, in a...

Part III Modified application of Insolvency (Northern Ireland) Order 1989

Parts V , 11 and 12

34In this Part of this Schedule, Part V of the...

34AIn the following provisions a reference to the creditors, general...

Members of a building society as contributories in winding up

35(1) Article 61 (liability of members) is modified as follows....

36Articles 62 to 65 and 69 in Chapter I of...

37In the enactments as applied to a building society, “...

Voluntary winding up

38(1) Article 70 does not apply. (2) In the enactments...

39In paragraph (1) of Article 87 (appointment of liquidation committee),...

40(1) Article 93 (distribution of property) does not apply; and...

41Articles 96 and 97 (liquidator accepting shares, etc , as...

42Article 101 (saving for certain rights) shall also apply in...

Winding up by the High Court

43Article 102 (circumstances in which company may be wound up...

44Article 104 (application for winding up) does not apply.

45(1) In Article 105 (powers of High Court on hearing...

46Article 106 (power of High Court, between petition and winding-up...

47If, before the presentation of a petition for the winding...

48(1) Article 110 (consequences of winding-up order) shall have effect...

49Article 119 (appointment of liquidator by High Court in certain...

50In the application of Article 120(1) (liquidation committee) to building...

50AArticle 121 (general functions of liquidator in winding up by...

51The conditions which the High Court may impose under Article...

52Article 132 (adjustment of rights of contributories) shall have effect...

53 Application of Companies Winding Up Legislation to Building Societies

Winding up: general

54Article 158 (power to make over assets to employees) does...

55(1) In Article 166 (dissolution: voluntary winding up), paragraph (2)...

55AIn Article 169 (dissolution: winding up by the High Court)...

Penal provisions

55BArticles 180 and 181 (restriction on re-use of name) do...

55C(1) Articles 182 and 183 (prosecution of delinquent officers) do...

55D(1) Where a report is made to the prosecuting authority...

Protection of supplies

55DAArticle 197B (protection of supplies of goods and services) does...

Preferential debts

55EArticle 347 (meaning in Schedule 4 of “the relevant date”)...

Insolvency practitioners: their qualification and regulation

55FArticle 349 (persons not qualified to act as insolvency practitioners)...

55G(1) In the following provisions of the Order, in a...

Part IV Dissolution of Building Society wound up (England and Wales, Scotland and Northern Ireland)

56(1) Where a building society has been wound up voluntarily,...

57(1) Sections 1012 to 1023 and 1034 of the Companies...

Insolvency rules and fees: England and Wales and Scotland

58(1) Rules may be made under section 411 of the...

Insolvency rules and fees: Northern Ireland

59(1) Rules may be made under Article 359 of the...

SCHEDULE 15A Application of other companies insolvency legislation to building societies

Part I General mode of application

1(1) Subject to the provisions of this Schedule, the enactments...

2(1) The enactments shall, in their application to building societies,...

3(1) Where any of the enactments as applied to building...

4(1) Rules may be made under section 411 of the...

5Any enactment which specifies a money sum altered by order...

5AIn this Schedule— “deposit” and “relevant deposit” have the meaning...

Part II Modified Application of Parts I to III , 6, 7, 12 and 13 of Insolvency Act 1986

6In this Part of this Schedule, the Insolvency Act 1986...

6AParts 1, 3, 6, 7 and 12 of the Act,...

Voluntary arrangements

7Section 1 of the Act (proposals for voluntary arrangements) has...

8In section 2 (procedure where nominee is not liquidator or...

8AIn subsection (2) of section 4A of the Act (approval...

9In section 6 of the Act (challenge of decisions) as...

9AIn section 7A of the Act (prosecution of delinquent officers)...

Administration orders

10(1) Section 8 of the Act (power of court to...

11(1) Subsection (1) of section 9 of the Act (application...

12In section 10 of the Act (effect of application for...

13In section 11 of the Act (effect of administration order),...

14In subsection (1) of section 12 of the Act (notification...

15Subsection (3) of section 13 of the Act (appointment of...

16(1) Subject to sub-paragraph (2) below, section 14 of the...

17(1) Subject to sub-paragraph (3) below, paragraph 16 of Schedule...

18. . . . . . . . . ....

19(1) Section 17 of the Act (general duties of administrator)...

20. . . . . . . . . ....

21(1) Subsection (1) of section 23 of the Act (statement...

22Section 24 of the Act (consideration of proposals by creditors’...

23(1) Section 25 of the Act (approval of substantial revisions)...

24Subsection (1) of section 27 of the Act (protection of...

Receivers and managers

25In section 38 of the Act (receivership accounts), “ prescribed...

26In subsection (1) of section 39 of the Act (notification...

27Subsection (3) of section 40 of the Act (payment of...

27ASections 42 to 49 of the Act (administrative receivers) are...

27BSubsection (1) of section 51 of the Act (power to...

27CSubsection (3) of section 59 of the Act (priority of...

27DSubsection (1) of section 67 of the Act (report by...

27ESubsection (1) of section 70 of the Act (interpretation for...

27FChapter 4 of Part 3 of the Act (prohibition of...

Protection of supplies

27FASection 233B of the Act (protection of supplies of goods...

Insolvency practitioners: their qualification and regulation

27GSection 390 of the Act (persons not qualified to act...

27H(1) In the following provisions of the Act, in a...

27IIn sections 391O, 391Q and 391R of the Act a...

Part III Modified Application of Parts II, III , 4 and 12 of Insolvency (Northern Ireland) Order 1989

28In this Part of this Schedule, the Insolvency (Northern Ireland)...

Voluntary arrangements

29Article 14 of the Order (proposals for voluntary arrangements) has...

30In Article 15 (procedure where nominee is not liquidator or...

30AIn paragraph (2) of Article 17A of the Order (approval...

31In Article 19 of the Order (challenge of decisions) as...

31AIn Article 20A of the Order (prosecution of delinquent officers)...

Administration orders

32(1) Article 21 of the Order (power of High Court...

33(1) Paragraph (1) of Article 22 of the Order (application...

34In Article 23 of the Order (effect of application for...

35In Article 24 of the Order (effect of administration order),...

36In paragraph (1) of Article 25 of the Order (notification...

37Paragraph (3) of Article 26 of the Order (appointment of...

38(1) Subject to sub-paragraph (2) below, Article 27 of the...

39(1) Subject to sub-paragraph (3) below, paragraph 17 of Schedule...

40. . . . . . . . . ....

41(1) Article 29 of the Order (general duties of administrator)...

42. . . . . . . . . ....

43(1) Paragraph (1) of Article 35 of the Order (statement...

44Article 36 of the Order (consideration of proposals by creditors’...

45(1) Article 37 of the Order (approval of substantial revisions)...

46Paragraph (1) of Article 39 of the Order (protection of...

Receivers and managers

47In Article 48 of the Order (receivership accounts), “ prescribed...

48In paragraph (1) of Article 49 of the Order (notification...

49Paragraph (3) of Article 50 of the Order (payment of...

50Articles 52 to 59 of the Order (administrative receivers) are...

51Article 59A of the Order (floating charge holder not to...

52Articles 59B to 59J of the Order (exceptions to prohibition)...

Protection of supplies

52AArticle 197B of the Order (protection of supplies of goods...

Insolvency practitioners: their qualification and regulation

53Article 349 of the Order (persons not qualified to act...

54(1) In the following provisions of the Order, in a...

55In Articles 350O, 350Q and 350R of the Order a...

SCHEDULE 16 Mergers: Supplementary Provisions

Part I Issue of Statements to Members

1(1) A building society which desires— (a) to amalgamate with...

Part II Notification of Proposals for Merger

2In this Part of this Schedule— “merger” means an amalgamation...

Duty to notify members

3(1) Subject to sub-paragraph (3) below, it shall be the...

4(1) A building society shall include in or with every...

Duty to notify appropriate authority

5(1) Where a building society sends a merger statement or...

6(1) If default is made by a building society in...

Part III Confirmation by appropriate authority : Procedure

7An application for confirmation by the appropriate authority of an...

8(1) Where a building society applies to the appropriate authority...

9(1) After the date specified in pursuance of paragraph 8(2)(b)...

SCHEDULE 17 Transfers of Business: Supplementary Provisions

PART I Issue of statement or summary to members

1In this Part of this Schedule— “ prescribed matters ”...

Duty to send transfer statements or summaries to members

2A building society which desires to transfer its business shall,...

3(1) A transfer statement, in relation to a transfer of...

4(1) Subject to sub-paragraph (3) below, a building society shall,...

5(1) The Treasury, may make regulations for the purpose of...

PART IA Notification of proposals for transfers of business

5AIn this Part of this Schedule— “ requisite particulars ”,...

Duty to notify members

5B(1) Subject to sub-paragraph (3) below, it shall be the...

5C(1) A building society shall include in or with every...

Duty to notify appropriate authority

5D(1) Where a building society sends a transfer proposal notification...

5E(1) If default is made by a building society in...

Part II Confirmation by appropriate authority : Procedure

6An application by a building society for confirmation by the...

7(1) Where a building society applies for confirmation of a...

8(1) After the date specified in the notice in pursuance...

SCHEDULE 18 Amendments of Enactments

Part I United Kingdom

Bankers’ Books Evidence Act 1879 (c.11)

1In section 9(1) of the Bankers’ Books Evidence Act 1879...

Land Registration Act 1925 (c.21)

2 Amendments of Enactments

Payment of Wages Act 1960 (c. 37)

3 Amendments of Enactments

Trustee Investments Act 1961 (c. 62)

4(1) This paragraph amends the Trustee Investments Act 1961 as...

Stock Transfer Act 1963 (c.18)

5In section 1(4) of the Stock Transfer Act 1963 (simplified...

Industrial and Provident Societies Act 1965 (c.12)

6In section 31(b) of the Industrial and Provident Societies Act...

Income and Corporation Taxes Act 1970 (c.10)

7 Amendments of Enactments

Banking and Financial Dealings Act 1971 (c.80)

8(1) This paragraph amends the Banking and Financial Dealings Act...

Local Government Act 1972 (c.70)

9In Schedule 12A (access to information: exempt information) to the...

Consumer Credit Act 1974 (c. 39)

10(1) This paragraph amends the Consumer Credit Act 1974 as...

Solicitors Act 1974 (c.47)

11(1) This paragraph amends the Solicitors Act 1974 as follows....

Home Purchase Assistance and Housing Corporation Guarantee Act 1978 (c.27)

12In section 3(1) (building society law) of the Home Purchase...

Banking Act 1979 (c.37)

13 Amendments of Enactments

Charging Orders Act 1979 (c.53)

14In section 6(1) (interpretation) of the Charging Orders Act 1979,...

Finance Act 1982 (c.39)

15 Amendments of Enactments

Companies Act 1985 (c.6)

16 Amendments of Enactments

Insolvency Act 1985 (c.65)

17 Amendments of Enactments

Housing Act 1985 (c. 68)

18(1) This paragraph amends the Housing Act 1985 as follows....

Housing Associations Act 1985 (c.69)

19(1) This paragraph amends the Housing Associations Act 1985 as...

Part II Northern Ireland

Industrial and Provident Societies Act (Northern Ireland)1969 (c.24 N.I.)

20In section 31(b) of the Industrial and Provident Societies Act...

Payment of Wages Act (Northern Ireland 1970

21 Amendments of Enactments

Private Streets (Northern Ireland) Order 1980 (S.I. 1980/1086 (N.I.12))

22In Article 33 (security not to be deemed prior mortgage...

Housing (Northern Ireland) Order 1981 (S.I. 1981/156 (N.I.3))

23(1) This paragraph amends the Housing (Northern Ireland) Order 1981...

Property (Discharge of Mortgage by Receipt) (Northern Ireland) Order 1983 (S.I. 1983/766 (N.I.9))

24In Article 3(10) of the Property (Discharge of Mortgage by...

Housing (Northern Ireland) Order 1983 (S.I. 1983/1118 (N.I.15))

25In Article 3(4) of the Housing (Northern Ireland) Order 1983,...

Companies (Northern Ireland) Order 1986

26 Amendments of Enactments

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

1In this Schedule— “the commencement date for” any provision of...

Adoption of powers and alteration of rules

2 Transitional and Saving Provisions

3 Transitional and Saving Provisions

4 Transitional and Saving Provisions

Registration with existing authorities

5A building society which, at the commencement date for section...

Authorisation under existing enactments

6(1) A building society which, at the commencement date for...

Anticipation of powers: declaratory provision

7(1) It is hereby declared that every building society has...

Unlawful anticipation of powers

8(1) Where a building society adopts any adoptable power under...

Penalty for breach of undertaking

9If, in breach of the obligation assumed by virtue of...

Penalty for false declaration

10If the statement in a declaration made for the purposes...

Powers of central office

11(1) The central office, on receiving from a building society...

Permissible securities for advances

12(1) Until provision is made by an order under section...

13Until provision is made by an order under section 12(3)...

Existing business names

14 Transitional and Saving Provisions

Directors in office

15(1) Except as provided in this paragraph, an existing director...

Existing financial years

16In the case of a building society established before 25th...

Qualifying assets

17For the purposes of the application of section 118 by...

Provision of conveyancing services for building societies

18 Transitional and Saving Provisions

SCHEDULE 21 Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Provision of Conveyancing Services by Recognised Institutions and Practitioners

Royal arms

Building Societies Act 1986

1986 CHAPTER 53

An Act to make fresh provision with respect to building societies and further provision with respect to conveyancing services.

[25th July 1986]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—