The Building Societies (General Charge and Fees) Regulations 1998

Fees in respect of mergers of societies

7.—(1) Subject to paragraph (3) below, a society which proposes to merge with another society, and—

(a) applies for consent under section 94(5)(b) of the Act to proceed to undertake to fulfil the engagements of the other society pursuant to a board resolution, or

(b) applies for approval under paragraph 1(3) of Schedule 16 to the Act or paragraph 3(4) of Schedule 8A to the Act(1) of the contents of a statement concerning matters relevant to the merger,

shall upon making such application pay to the Commission a fee determined in accordance with paragraph (2) below in respect of the Commission’s functions in relation to the application and any functions it may exercise subsequently under section 95 of the Act(2) with respect to the proposed merger.

(2) The sum payable under paragraph (1) above shall be £12,050, but a society which on making such application pays a fee of £8,100 shall not be required to pay the remaining £3,950 unless and until the Commission gives notice pursuant to paragraph 9(1)(b) of Schedule 16 to the Act to the society of its determination under paragraph 9(1)(a) of that Schedule.

(3) In any case where the Commission considers that the proposed merger would be expedient for the purpose of protecting the investments of the shareholders of or depositors in any society proposing to amalgamate with or transfer its engagements to another society, the Commission may in respect of the proposed merger waive payment of or reduce the fee payable by any or all of the societies concerned under paragraph (1) above by notifying any society in respect of which the fee is waived or reduced of such waiver or as the case may be of the reduced fee to be paid in respect of the society’s application and where the fee is so reduced the sums payable on application and upon the notice referred to in paragraph (2) above shall be such as may be notified by the Commission to the society.

(1)

Schedule 8A was inserted by section 17(2) of and Schedule 4 to the Building Societies Act 1997.

(2)

Section 95 was amended by section 43 of and paragraph 43 of Schedule 7 to the Building Societies Act 1997.