- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made).
Statutory Instruments
Building Societies
Made
21st April 2008
Laid before Parliament
21st April 2008
Coming into force
29th June 2008
The Treasury make the following Regulations in exercise of the powers conferred by sections 72C(1), (2) and (3), 72G(1), (2) and (3), and 76(3) of the Building Societies Act 1986(1).
1.—(1) These Regulations may be cited as the Building Societies (Accounts and Related Provisions) (Amendment) Regulations 2008.
(2) They come into force on 29th June 2008 and apply in relation to financial years beginning on or after that date.
2. The Building Societies (Accounts and Related Provisions) Regulations 1998(2) are amended as follows.
3. In regulation 10(1) (summary financial statement), before “the relevant Part” insert “in”.
4. In Schedule 5 (notes to annual accounts), after paragraph 37 insert—
38.—(1) Particulars may be given of transactions which the society has entered into with related parties, and must be given if such transactions are material and have not been concluded under normal market conditions.
(2) The particulars of transactions required to be disclosed by sub-paragraph (1) must include—
(a)the amount of such transactions,
(b)the nature of the related party relationship,
(c)other information about the transactions necessary for an understanding of the financial position of the society.
(3) Information about individual transactions may be aggregated according to their nature, except where separate information is necessary for an understanding of the effects of related party transactions on the financial position of the society.
(4) Particulars need not be given of transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly-owned by such a member.
(5) In this paragraph, “related party” has the same meaning as in international accounting standards.”.
5. In Schedule 7 (accounting principles and rules), in paragraph 31A—
(a)in sub-paragraph (2), at the end of paragraph (a), omit “or”;
(b)at the end of paragraph (b), insert—
“; or
(c)they are financial instruments falling within sub-paragraph (3A).”;
(c)in sub-paragraph (3), before “Sub-paragraph (1) does not apply to” insert “Unless they are financial instruments falling within sub-paragraph (3A) below,”;
(d)after sub-paragraph (3), insert—
“(3A) Financial instruments which, under international accounting standards adopted by the European Commission on or before 5th September 2006 in accordance with the IAS Regulation, may be included in accounts at fair value, may be so included, provided that the disclosures required by such accounting standards are made.”.
Dave Watts
Steve McCabe
Two of the Lords Commissioners of Her Majesty’s Treasury
21st April 2008
(This note is not part of the Regulations)
These Regulations amend the Building Societies (Accounts and Related Provisions) Regulations 1998 (S.I. 1998/504) (“the principal Regulations”) to implement in part Directive 2006/46/EC of the European Parliament and of the Council on the annual and consolidated accounts of certain types of companies, banks and other financial institutions (O.J. L 224, 16/8/2006, p.1) (“the Directive”).
Regulation 3 corrects a defect in regulation 10(1) as amended by S.I. 2007/859. As this instrument contains other amendments to the principal Regulations, it is not being issued free of charge to purchasers of the defective instrument.
Regulation 4 amends Schedule 5 to the principal Regulations, to require societies preparing Building Societies Act accounts (see sections 72A(2) and 72E(3) of the Building Societies Act 1986 (c. 53), inserted by S.I. 2004/3380) to give certain information about transactions with related parties in the notes to those accounts.
Regulation 5 amends Schedule 7 to the principal Regulations, to enable societies preparing Building Societies Act accounts to value a wider range of financial liabilities at fair value in accordance with international accounting standards.
A transposition note showing how the main provisions of the Directive (as it applies to building societies) will be transposed into UK law is available from HM Treasury. Copies may be obtained from the Savings and Investment Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and the note will be available on the Treasury website (www.hm-treasury.gov.uk).
A full regulatory impact assessment of the effect that this instrument will have on the costs of business is also available from HM Treasury at the above address, and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).
1986 c.53. Sections 72C and 72G were substituted, together with sections 72A, 72B, 72D to 72F, 72H and 72I, for sections 72 and 73 as originally enacted, by S.I. 2004/3380. Regulations made under section 73 have effect as if made under sections 72C and 72G (see article 9(2) of S.I. 2004/3380).
S.I. 1998/504, as amended by S.I. 2004/3199 and S.I. 2007/859. There are other amending instruments but none is relevant.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: