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The Investor Compensation Scheme Regulations 1998

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Amendment of the Building Societies Act 1986

3.  For subsection (4) of section 27 of the Building Societies Act 1986(1) shall be substituted the following–

“(4) The Board may decline to make any payment under subsection (1) to a person who, in the opinion of the Board–

(a)had any responsibility for, or may have profited directly or indirectly from, the circumstances giving rise to the institution’s financial difficulties; or

(b)is entitled to receive a payment in respect of his protected investment under a scheme established under section 54 of the Financial Services Act 1986 or set up pursuant to the conditions and arrangements referred to in section 43(2) of that Act,

and where any payment as mentioned in paragraph (b) above has been received by a person, the Board shall decline to make a payment under subsection (1) to that person.”

(1)

1986 c. 53. Section 27 of the Building Societies Act has been amended by the Credit Institutions (Protection of Depositors) Regulations 1995 (S.I. 1995/1442) and by section 43 of and Schedule 7 to the Building Societies Act 1997 (c. 32).

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