Financial Services (Banking Reform) Act 2013

Financial year U.K.

15 (1) Section 117 (financial year of building societies) is amended as follows. U.K.

(2) For subsection (1) substitute—

“(1) A building society's financial years (apart from its final financial year) are determined according to its year-end date in each calendar year.

For provision about a building society's final financial year, see subsection (1G).

(1A) The year-end date of a building society established before 25th August 1894 is—

(a) the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or

(b) if the society has, at any time before the day on which subsection (1) comes into force (“the relevant day”), altered its financial year in exercise of a power within subsection (1B), 31st December.

(1B) The powers referred to in subsection (1A)(b) are—

(a) the power conferred by section 70(2) of the Building Societies Act 1960,

(b) the power conferred by section 128(2) of the Building Societies Act 1962, and

(c) the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).

(1C) The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.

(1D) The year-end date of a building society established on or after the relevant day is the last day of the month in which the anniversary of its establishment falls.

(1E) The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end date of the society (but see subsection (1G)).

(1F) In the case of a building society established on or after the relevant day—

(a) the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning with the date of its establishment and ending with its year-end date, and

(b) its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial year and ending with its year-end date (but see subsection (1G)).

(1G) The final financial year of a building society is a period of less than 12 months that begins immediately after the end of the previous financial year and ends with the date as at which the society makes up its final accounts.

(1H) This section has effect subject to section 117A (alteration of financial year).”

(3) Omit subsections (2) and (3).

16 U.K. After section 117 insert—

“117A Alteration of financial year

(1) A building society may by notice given to the FCA specify a new year-end date.

(2) A notice given under subsection (1) has effect in relation to—

(a) the financial year in which the notice is given (“the current financial year”), and

(b) subsequent financial years.

(3) The notice must state whether the current financial year—

(a) is to be shortened, so as to come to an end on the first occasion on which the new year-end date falls or fell after the beginning of the current financial year, or

(b) is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the current financial year.

(4) A notice extending a building society's financial year is not effective if given less than 5 years after the end of an earlier financial year of the society that was extended under this section.

(5) A financial year of a building society may not be extended so as to exceed 18 months and a notice under subsection (1) is ineffective if the current financial year as extended in accordance with the notice would exceed that limit.”

17 U.K. In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).

18 U.K. The amendments made by paragraphs 15 to 17 have effect in relation to financial years beginning on or after the day on which those amendments come into force.