Building Societies Act 1986

2 (1) Recognition rules may prescribe—

(a) the circumstances in which institutions, or institutions of any specified description, may be recognised by the Lord Chancellor under this Schedule as being suitable to undertake the provision of conveyancing services ; and

(b) the conditions which (subject to any exceptions provided by the rules) must at all times be complied with by institutions so recognised if they are to remain so recognised.

(2) Without prejudice to the generality of sub-paragraph (1)(b) above, rules made by virtue of that provision may prescribe such conditions as appear to the Lord Chancellor to be appropriate for the purpose of—

(a) protecting persons for whom conveyancing services are provided by recognised institutions from conflicts of interest that might otherwise arise in connection with the provision of such services ; and

(b) securing that compensation is available to such persons in respect of negligence, fraud or other dishonesty on the part of officers or employees of recognised institutions or (in the case of recognised institutions which are unincorporated associations) on the part of members of such institutions.

(3) Recognition rules may make provision for enabling the Lord Chancellor to require a recognised institution to furnish him with such information or documents as he considers necessary or expedient for the purpose of ascertaining whether or not the institution is complying with any conditions prescribed in pursuance of sub-paragraph (1)(b) above.