Search Legislation

Building Societies Act 1986

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes to legislation:

Building Societies Act 1986, Cross Heading: Miscellaneous and supplementary is up to date with all changes known to be in force on or before 22 February 2020. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Miscellaneous and supplementaryU.K.

104 Power to amend, etc. to assimilate to company law.U.K.

(1)If, on any modification of the statutory provisions in force in Great Britain or Northern Ireland relating to companies, it appears to the Treasury to be expedient to modify the relevant provisions of this Act for the purpose of assimilating the law relating to companies and the law relating to building societies, the Treasury may, by order, make such modifications of the relevant provisions of this Act as they think appropriate for that purpose.

(2)The “relevant provisions of this Act” are the following provisions as for the time being in force, that is to say—

(a)so much of Part VI as relates to investigations or inspections;

(b)the provisions of Part VII (management);

(c)the provisions of Part VIII (accounts and audit); F1 . . .

(d)so much of Part X as relates to winding up [F2or insolvency][F3; and

(e)section 110 (provisions exempting officers and auditors from liability).].

(3)The power conferred by subsection (1) above includes power to modify the relevant provisions of this Act so as to—

(a)confer power to make orders, regulations, rules or other subordinate legislation;

(b)create criminal offences; or

(c)provide for the charging of fees but not any charge in the nature of taxation.

(4)An order under this section may—

(a)make consequential amendments of or appeals in other provisions of this Act; or

(b)make such transitional or saving provisions as appear to the Treasury to be necessary or expedient.

(5)The power to make an order under this section is exercisable by statutory instrument but no such order shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.

(6)In this section—

  • modification” includes any additions and, as regards modifications of the statutory provisions relating to companies, any modification whether effected by any future Act or by an instrument made after the passing of this Act under an Act whenever passed; and

  • statutory provisions” includes the provisions of any instrument made under this Act.

Subordinate Legislation Made

P1S. 104: power exercised by S.I. 1991/1729

S. 104: power exercised (4.12.1991) by S.I. 1991/2738

Textual Amendments

F1Word in s. 104(2) omitted (1.10.1991) by virtue of Companies Act 1989 (c. 40, SIF 27), s. 211(1); S.I. 1991/1996, art. 2(1)(b)

F2Words in s. 104(2) inserted (1.12.1997) by 1997 c. 32, s. 43, Sch. 7 para. 48; S.I. 1997/2668, art. 2, Sch. Pt. I(j)(l)(xii)

F3Word in s. 104(2) and s. 104(2)(e) added (1.10.1991) by Companies Act 1989 (c. 40, SIF 27), s. 211(1); S.I. 1991/1996, art. 2(1)(b)

[F4104A Registration of charges: application of company law.U.K.

(1)For the purpose of securing the registration of charges created by building societies, the Secretary of State may, by order made with the concurrence of the Treasury F5... , provide that such of the provisions of [F6Part 25 of the Companies Act 2006 (company charges)] as may be specified in the order shall apply in relation to building societies, and charges created by building societies, with such modifications as may be so specified.

(2)An order under this section may make different provision for different cases or different areas and may contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State to be necessary or expedient.

(3)The power to make an order under this section is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F4S. 104A inserted (9.6.1997) by 1997 c. 32, s. 42; S.I. 1997/1427, art. 2(j)

F5Words in S. 104A(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with S. 13(3), Sch. 5); S.I. 2001/3538, art. 2

[F7105 Limited power to anticipate future statutory instrument powers.U.K.

(1)This section has effect as regards any power conferred under any provision of this Act on building societies or building societies of any description by—

(a)an instrument a draft of which has to be approved by a resolution of each House of Parliament before it can be made, or

(b)an instrument which is subject to annulment in pursuance of a resolution of either House of Parliament and which defers its operation until a future date;

and in this section “the anticipation date” is, in the case of an instrument falling within paragraph (a), the date on which either House approves the draft and, in the case of an instrument falling within paragraph (b), the date on which it was laid before Parliament.

(2)Every building society or, as the case may be, every building society of the description to which the instrument applies, has, as from the anticipation date, power, for the purposes of the power conferred by the instrument, to do such things, subject to subsection (3) below, as are reasonably necessary to enable it—

(a)to decide whether or not, and to what extent, to exercise (and in the case of an adoptable power to adopt) the power, and

(b)if it decides to exericse the power, to exercise it as from the date when it becomes exercisable by the society.

(3)Subsection (2)(b) above does not authorise a society—

(a)to make contracts, other than conditional contracts, for the acquisition of land, the acquisition of a business or the acquisition of shares in any company if that company offers the public any service or facility within the power,

(b)to issue invitations to members of the society or the public to apply for any power to be exercised for their benefit, or

(c)to retain shares in a company which offers the public any service or facility within the power;

and, in this subsection, “conditional”, in relation to contracts with respect to the exercise of a power, means conditional on the power’s becoming exercisable by the society.

(4)The power conferred by this paragraph, and activities carried on under it, for the purposes of an adoptable power are not to be treated as included in, or in activities comprised in, that adoptable power for the purposes of paragraph 16 of Schedule 2 to this Act.]

Textual Amendments

F7S. 105 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 49, Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxix)(cc)(xiv)

106 Public file of the society.U.K.

(1)The [F8FCA] shall prepare and maintain a file relating to each building society (to be known as the public file) and the file shall—

(a)contain the documents or, as the case may be, the copies of the documents and the records of the matters directed by or under any provision of this Act to be kept in the public file of the society; and

(b)be available for inspection on reasonable notice by members of the public [F9subject to subsection (3) below].

(2)Any member of the public shall be entitled, [F9subject to subsection (3) below], to be furnished with a copy of all or any of the documents or records kept in the public file of a building society.

[F10(3)The [F8FCA] may charge a reasonable fee for making the public file available to any person for inspection under subsection (1)(b) above, or for furnishing any person with a copy of any documents or records under subsection (2) above.]

Textual Amendments

F9Words in S. 106(1)(b)(2) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 189(b) (with S. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F10S. 106(3) inserted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 189(c) (with S. 13(3), Sch. 5); S.I. 2001/3538, art. 2

107 Restriction of use of certain names and descriptions.U.K.

(1)Subject to subsections (2) to (9) below, no person carrying on in the United Kingdom a business of any description shall, unless that person is a building society, use any name or in any other way so describe himself or hold himself out so as to indicate, or reasonably be understood to indicate—

(a)that he is a building society,

(b)that he, or his business, is connected with one or more building societies, or

(c)that he, or his business, is connected with building societies generally.

(2)Subsection (1) does not prohibit the use by an institution carrying on the business of taking deposits and making loans secured on land which has its principal place of business in a country or territory outside the United Kingdom, of the name under which the institution carries on business in that country or territory if—

(a)the name is used in immediate conjunction with a description distinguishing the institution from a building society, being a description which has been approved for the purposes of this subsection by the [F11FCA] and the approval has not been revoked under subsection (7) below, and

(b)where the name appears in writing, that description is sufficiently prominent to secure that a person who reads the name will also read the description.

(3)For a description to distinguish an institution from a building society for the purposes of subsection (2) above it must distinguish it by reference to all or any of the following matters,—

(a)the situation of its principal place of business,

(b)its legal status or constitution, and

(c)the law (if any) which authorises it to take deposits in the United Kingdom,

as the [F11FCA] determines in its case, but need not indicate any other distinction.

(4)Subsection (1) above does not prohibit a person from carrying on a business under a name which indicates a connection between—

(a)that person, or his business, and one or more building societies, or

(b)that person, or his business, and building societies generally,

if the name has been approved for the purposes of this subsection by the [F11FCA] and the approval has not been revoked under subsection (7) below.

(5)No name shall be approved for the purposes of subsection (4) above unless the [F11FCA] , having regard to—

(a)the true connection (if any) in fact existing between the person using, or proposing to use, the name and the particular society or societies in question or with building societies generally, as the case may be, and

(b)in the cases referred to in subsection (4)(a) above, the respective natures of the business of that person and the society or societies in question,

is satisfied that the connection indicated by the name is not misleading; and, in so far as the name indicates investment or other financial support on the part of a building society the [F11FCA] shall not approve the use of the name unless it is satisfied that the name indicates no more investment or support than is the case and than is, in the opinion of the [F11FCA] , within the financial capacity of the building society to provide.

(6)An application for approval under subsection (2) or (4) above shall be made to the [F11FCA] in such form as it directs and accompanied by such information or evidence as it requires generally or in the particular case.

(7)The [F11FCA] may revoke any approval under subsection (2) or (4) above of a distinguishing description or a name, as the case may be, if it is of the opinion—

(a)in the case of a distinguishing description, that, by reason of any change in the matters by reference to which the distinction is made, the description does not or does not any longer distinguish the institution as required by subsection (2) above, or

(b)in the case of a name.

(i) that the name has proved to be misleading to the public,

(ii)that the approval has been obtained by fraud or mistake, or

(iii)that there has been a change in the facts to which the [F11FCA] had regard in giving its approval,

but it shall not do so without first giving the person to whom the approval was given an opportunity of making representations with respect to the proposed revocation of that approval.

(8)Subsection (1) above does not prohibit a person from using a description (other than his name) which, or from holding himself out in a way that, indicates a connection between himself or his business and one or more building societies if and to the extent he has been authorised to do so in writing by the society or societies in question.

(9)Subsection (1) above does not prohibit a person from using a description (other than his name) which, or from holding himself out in a way that, indicates a connection between himself or his business and building societies generally where the connection indicated is not misleading.

(10)Where on an application for—

(a)the first registration of a company, or the registration of a company by a new name, by [F12the registrar of companies under the Companies Act 2006], or

[F13(b)approval by the Secretary of State of words or expressions for inclusion in a business name under section 1194 of the Companies Act 2006,]

it appears to the registrar, [F14or the Secretary of State], as the case may be, that the use of the name or the words or [F15expressions] by the person seeking to register with it would contravene subsection (1) above, the registration shall not be made or the approval given.

(11)A person who contravenes subsection (1) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale; and where the contravention involves a public display or exhibition of the offending name, description or other matter, there shall be a fresh contravention of the subsection on each day during which that person causes or permits the display or exhibition to continue for which that person shall be liable on summary conviction to a fine not exceeding £200.

[F16(12)In this section—

  • “deposit” must be read with—

    (a)

    section 22 of the Financial Services and Markets Act 2000;

    (b)

    any relevant order under that section; and

    (c)

    Schedule 2 to that Act;

  • institution” means—

    (a)

    a body corporate wherever incorporated;

    (b)

    a partnership formed under the law of any part of the United Kingdom;

    (c)

    a partnership or other unincorporated association of two or more persons formed under the law of a member State other than the United Kingdom.]

F17108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

109 Exemption from stamp duty.U.K.

[F18(1)]The following instruments shall be exempted from all such stamp duties (if any) as apart from this section would be chargeable on them, that is to say—

(a)any copy of the rules of a building society;

(b)any transfer of a share in a building society;

(c)any bond or other security to be given to, or on account of, a building society or by an officer of a building society;

(d)any instrument appointing an agent of a building society or revoking such an appointment; and

(e)any other instrument whatsoever which is required or authorised to be given, issued, signed, made or produced in pursuance of this Act or of the rules of a building society.

[F19(2)No transfer effected by subsection (6) or (7) of section 97 shall give rise to any liability to stamp duty]

Textual Amendments

Modifications etc. (not altering text)

[F20109A.Exemptions from stamp duty land taxU.K.

(1)A land transaction effected by or in consequence of—

(a)an amalgamation of two or more building societies under section 93; or

(b)a transfer of engagements between building societies under section 94,

is exempt from charge for the purposes of stamp duty land tax.

(2)Relief under this section must be claimed in a land transaction return or an amendment of such a return.

(3)In this section—

  • “land transaction” has the meaning given by section 43(1) of the Finance Act 2003;

  • “land transaction return” has the meaning given by section 76(1) of that Act.]

110 Officers and auditors not to be exempted from liabilityU.K.

(1)Subject to subsection (3) below, any provision to which this section applies, whether contained in the rules of a building society or in any contract with a building society or otherwise, shall be void.

(2)This section applies to any provision for—

(a)exempting any director, other officer or person employed as auditor of a building society from any liability which, by virtue of any rule of law, would otherwise attach to him in respect of the negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the society, or

(b)indemnifying any such person against any such liability.

[F21(3)Subsection (1) above shall not prevent a building society from

(a)purchasing and maintaining for a person insurance against any such liability, or

(b)indemnifying a person against any liability incurred by him in defending any proceedings (whether civil or criminal) in which judgment is given in his favour or he is acquitted.]

(4)[F22Section 1157 of the Companies Act 2006 (power of court] to grant relief in certain cases of negligence, default, breach of duty or breach of trust) shall apply in relation to officers and auditors of a building society as it applies in relation to officers and auditors a company.

111 Time limit for commencing proceedings.U.K.

(1)Notwithstanding any limitation on the time for the taking of proceedings contained in any Act, summary proceedings for any offence under this Act [F23, other than an offence in relation to which provision is made in subsection (1A),] may, subject to subsection (2) below, be commenced [F24by the FCA] at any time within the period of one year beginning with the date of which evidence sufficient [F25in its opinion] to justify a prosecution for the offence, comes to its knowledge.

[F26(1A)Notwithstanding any limitation on the time for taking proceedings contained in any Act, summary proceedings for the offences under the provisions listed in subsection (1B), in the circumstances specified in that subsection in relation to those provisions, may be commenced by the PRA, after notifying the FCA, or by the FCA, after notifying the PRA, at any time within the period mentioned in subsection (1C).

(1B)The provisions and the circumstances are—

(a)section 52 (powers to obtain information and documents etc.), if—

(i)the failure referred to in subsection (10) of that section is a failure to furnish any information or accountant’s report, to produce any documents or material, or to provide any explanation or make any statement to the PRA, or

(ii)the information, explanation or statement referred to in subsection (11) or (12) of that section is furnished, provided or made to the PRA;

(b)section 55 (investigations), if the person appointed under subsection (1) of that section was appointed by the PRA;

(c)section 81 (laying and furnishing accounts), if the default referred to in subsection (4) of that section relates to a failure to send a copy of the accounts to the PRA in accordance with subsection (2) of that section;

(d)section 87 (dissolution by consent), if the failure referred to in subsection (5) or (7) of that section relates to a failure to give notice to the PRA;

(e)section 88 (voluntary winding up), if the failure referred to in subsection (4) of that section relates to a failure to send a copy of the resolution to the PRA in accordance with subsection (2) of that section;

(f)section 91 (power of court to declare dissolution of building society void), if the failure referred to in subsection (5) of that section relates to a failure to send a copy of an order to the PRA in accordance with subsection (4) of that section;

(g)section 95 (mergers: provisions supplementing sections 93 and 94), if the application referred to subsection (3) of that section was made, or should have been made, to the PRA;

(h)section 98 (transfers of business: supplementary provisions), if the application referred to subsection (2) of that section was made, or should have been made, to the PRA;

(i)Schedule 8A, paragraph 3(5) (directions under section 42B(3)), if the PRA has given a direction under section 42B(3);

(j)Schedule 8A, paragraph 9(5) (directions under section 42B(4)), if the PRA has given a direction under section 42B(4);

(k)Schedule 11, paragraph 3 (auditors: appointment), if the failure referred to in sub-paragraph (2) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (1) of that paragraph;

(l)Schedule 11, paragraph 6 (auditors: removal), if the failure referred to in sub-paragraph (3) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (2) of that paragraph;

(m)Schedule 11, paragraph 7 (auditors: resignation), if the default referred to in sub-paragraph (8) of that paragraph relates to a failure to send any notice or statement to the PRA in accordance with sub-paragraph (3) or (7) of that paragraph;

(n)Schedule 15, paragraph 21 (application of companies winding up legislation to building societies: winding up by the court), if the failure referred to in sub-paragraph (4) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (3) of that paragraph;

(o)Schedule 15, paragraph 48 (modified application of Insolvency (Northern Ireland) Order 1989: winding up by the High Court), if the failure referred to in sub-paragraph (4) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (3) of that paragraph; and

(p)Schedule 16, paragraph 6 (mergers: penalty), if the default referred to in sub-paragraph (1) of that paragraph relates to a failure to send a copy of a statement or notification to the PRA in accordance with paragraph 5(1) of that Schedule.

(1C)The period is one year beginning with the date on which evidence comes to the knowledge of one or both of the FCA and the PRA, being evidence sufficient in the opinion of the FCA or the PRA (as the case may be) to justify a prosecution.]

(2)Nothing in subsection (1) [F27or (1A)] above shall authorise the commencement of proceedings for any offence at a time more than three years after the date on which the offence was committed.

(3)For the purposes of subsection (1) [F28and subsection (1C)] of this section a certificate, purporting to be signed by or on behalf of the [F29FCA or the PRA] , as to the date on which such evidence as is mentioned in [F30the relevant subsection] came to its knowledge, shall be conclusive evidence of that date.

[F31(4) In the application of this section to Scotland—

(a)for subsection (1), substitute—

(1)Notwithstanding any limitation on the time for the taking of proceedings contained in any Act, summary proceedings for any offence under this Act may, subject to subsection (2), be commenced by the Lord Advocate at any time within the period of one year beginning with the date on which evidence sufficient in the opinion of the Lord Advocate to justify a prosecution for the offence, comes to the knowledge of the Lord Advocate;

(b)omit subsections (1A), (1B) and (1C); and

(c)for subsection (3), substitute—

(3)For the purposes of subsection (1) of this section a certificate, purporting to be signed by or on behalf of the Lord Advocate, as to the date on which such evidence as is mentioned in that subsection came to the knowledge of the Lord Advocate, shall be conclusive evidence of that date..]

(5)In the application of this section to Scotland, [F32section 136(3) of the Criminal Procedure (Scotland) Act 1995] shall apply for the purposes of this section as it applies for the purposes of that section.

Textual Amendments

F32Words in s. 111(5) substituted (S.) (1.4.1996) by 1995 c. 40, ss. 5, 7(2), Sch. 4 para. 65

112 Offences: liability of officers and defence of due diligence.U.K.

(1)Where an offence under any provision of this Act committed by a building society is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer of the society he, as well as the society, shall be guilty of that offence and liable to be proceeded against and punished in accordance with that provision.

F33(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Where an offence under any provision of this Act committed by a body corporate other than a building society is proved to have been committed with the consent or connivance, or to be attributable to any neglect on the part of, any officer of the body corporate he, as well as the body corporate, shall be guilty of that offence and liable to be proceeded against and punished accordingly.

(4)In any proceedings for an offence under this Act, it shall be a defence for a person charged to prove that he took all reasonable precautions and exercised all due diligence to avoid the commission of such an offence by himself or any person under his control

Textual Amendments

F33S. 112(2) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

113 Evidence.U.K.

[F34(1)Any document bearing the seal or stamp of the [F35FCA] shall be received in evidence without further proof.

(1A)Any document purporting to have been signed by a person authorised to do so on behalf of the [F36FCA or the PRA] shall, in the absence of any evidence to the contrary, be received in evidence without proof of the signature.

(1B)In subsections (1) and (1A), “document” means any document issued, received or created by the [F36FCA or the PRA] for the purposes of or in connection with this Act.]

(2)Any printed document purporting to be a copy of the rules or memorandum of a building society, and certified by the secretary or other officer of the society to be a true copy of its rules or memorandum as registered, shall be received in evidence and shall, in the absence of any evidence to the contrary, be deemed to be a true copy of its rules or memorandum.

Textual Amendments

F34S. 113(1)-(1B) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) for s. 113(1) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 192 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

114 Records.U.K.

(1)Subject to any other provision of this Act or regulations under it, any record to be kept by a building society may be kept in any manner.

(2)Where any such record is not kept by making entries in a bound book, but by some other means, adequate precautions shall be taken for guarding against falsification and facilitating its discovery.

(3)The power in subsection (1) above includes power to keep the record by recording matters otherwise than in legible form so long as the recording is capable of being reproduced in a legible form; and any duty imposed by or under this Act to allow inspection of, or to furnish a copy of, the record or any part of it is to be treated as a duty to allow inspection of, or to furnish, a reproduction of the recording or of the relevant part of it in a legible form.

(4)The [F37Treasury may by regulations], make such provision in addition to subsection (3) above as [F38they consider] appropriate in connecton with such records as are kept otherwise than in legible form; and the regulations may make modifications of this Act so far as it relates to the records of building societies.

(5)If default is made in complying with this section the building society shall be liable on summary conviction—

(a)to a fine not exceeding level 4 on the standard scale, and

(b)in the case of a continuing offence, to an additional fine not exceeding £100 for every day during which the offence continues,

and so shall any officer who is also guilty of the offence.

Textual Amendments

F37Words in S. 114(4) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 193(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F38Words in s. 114(4) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 193(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

Modifications etc. (not altering text)

C2S. 114(4): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2000/2617 arts. 2(b), 4(1) Sch. 1 Pt. III; S.I. 2001/3538, art. 2

115 Service of notices.U.K.

(1)This section has effect in relation to any notice, directions or other document required or authorised by or under any provision of this Act or by the rules of a building society to be served on any person other than the [F39FCA and the PRA] but subject, in the case of notices or other documents to be given or sent to members of a building society, to any provision of its rules.

F40(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)Any such document may be served on the person in question—

(a)by delivering it to him;

(b)by leaving it at his proper address; or

(c)by sending it by post to him at that address.

[F41(2A)The reference in subsection (2)(a) to delivering a document to a person includes a reference to sending it electronically to an electronic address which that person has notified for the purpose in accordance with express provision made by this Act.]

(3)Any such document may—

(a)in the case of a building society, be served on the secretary of the society;

(b)in the case of a body corporate (other than a building society), be served on the secretary or clerk of that body;

(c)in the case of a partnership, be served on any partner;

(d)in the case of an unincorporated association other than a partnership, be served on any member of its governing body.

(4)For the purposes of this section and section 7 of the M1Interpretation Act 1978 (service of documents) in its application to this section, the proper address of any person is—

(a)in the case of a building society or its secretary, the address of its principal office;

(b)in the case of a member of a building society, his registered address;

(c)in the case of a director or the chief executive of a building society, his officially notified address;

(d)in the case of a body corporate (other than a building society) its secretary or clerk, the address of its registered or principal office in the United Kingdom;

(e)in the case of an unincorporated association (other than a partnership) or a member of its governing body, its principal office in the United Kingdom;

and, in any other case, his last-known address (whether of his residence or of a place where he carries on business or is employed).

[F42115ADeemed agreement to use of web siteU.K.

(1)For the purposes of this Act, a person is to be taken to have agreed with a building society to access a document, information or facility on a web site if—

(a)the person has been asked individually by the society to agree to access documents, information or facilities generally, or documents, information or facilities of the description in question, on a web site, and

(b)the society has not received a response within the period of 28 days beginning with the date on which the society's request was received.

This is subject to subsections (2) to (4).

(2)A person is not to be taken to have so agreed if the society's request—

(a)did not state clearly what the effect of a failure to respond would be, or

(b)was sent less than 12 months after a previous request made to the person for the purposes of this section in respect of the same or a similar description of document, information or facility.

(3)A person who is taken to have made an agreement by virtue of subsection (1) may revoke the agreement.

(4)Subsection (1) does not apply in relation to the following documents—

(a)a statement required to be sent to members by paragraph 1(1) of Schedule 16 (statements in connection with proposed mergers);

(b)a merger statement (within the meaning of Part 2 of that Schedule) required to be sent to members by paragraph 3 of that Schedule;

(c)a transfer statement or transfer summary (within the meaning of Part 1 of Schedule 17) required to be sent to members by paragraph 4(1) or (2) of that Schedule;

(d)a transfer proposal notification (within the meaning of Part 1A of Schedule 17) required to be sent to members by paragraph 5B(1) of that Schedule.

Textual Amendments

115BRight to hard copy versionU.K.

(1)Where a person has received a document or information from a building society otherwise than in hard copy form, the person is entitled to require the society to send the person a version of the document or information in hard copy form.

(2)The society must send the document or information in hard copy form within 21 days of receipt of the request from the person.

(3)The society may not make a charge for providing the document or information in that form.

(4)Subsection (1) does not apply if the recipient of the document or information is the FCA or the PRA.

(5)A building society that fails to comply with this section is to be treated as having contravened rules made under section 137A of the Financial Services and Markets Act 2000.

(6)For the purposes of this section a person is treated as receiving a document or information from a building society if—

(a)the society is required by this Act to send the document or information to the person, and

(b)the requirement to send it is treated as satisfied.

(7)For the purposes of this section—

(a)a document or information is sent or supplied in hard copy form if it is sent or supplied in a paper copy or similar form capable of being read, and

(b)a document or information can be read only if it can be read with the naked eye, or (to the extent that it consists of images) it can be seen with the naked eye.

Textual Amendments

115COther agreed forms of communicationU.K.

(1)A document or information that is sent or supplied by a building society otherwise than in hard copy form or electronically or by means of a web site is validly sent or supplied if it is sent or supplied in a form or manner that has been agreed by the intended recipient.

(2)For the purposes of this section “hard copy form” is to be read in accordance with section 115B(7).]

Textual Amendments

[F43116 Form of documents.U.K.

(1)The [F44FCA and the PRA may each] , by directions under this section, make provision with respect to the form of, and the particulars to be included in, any document to be sent to it under this Act.

[F45(1A)The PRA and the FCA must each consult the other before issuing a direction under this section if the document in question is required to be sent to both of them.]

(2)The directions have effect subject to any other provision of or made under this Act.]

Textual Amendments

F43S. 116 substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 195 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

117 Financial year of building societies.U.K.

[F46(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.

(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).]

F47(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F47(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F48117AAlteration of financial yearU.K.

(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.]

[F49118 Qualifying asset holding for certain powers.U.K.

(1)This section has effect for determining for the purposes of this Act whether, in any financial year, a building society has a “qualifying asset holding”.

(2)A building society has a qualifying asset holding in any financial year, if, and only if, the aggregate value of its total commercial assets, as shown in its annual accounts for the previous year, is not less than £100 million or such other amount as may be substituted for it under subsection (3) below.

(3)The Commission, with the consent of the Treasury, may by order made by statutory instrument substitute for the amount for the time being specified in subsection (2) above such other amount as the Commission considers appropriate.

(4)An order under subsection (3) above may contain such transitional provisions as the Commission considers necessary or expedient.

(5)An instrument containing an order under subsection (3) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F49S. 118 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 52, Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(y)(z)(xxx)(cc)(xv)

F50118A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments

F50S. 118A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with S. 13(3), Sch. 5); S.I. 2001/3538, art. 2

119 Interpretation.U.K.

(1)In this Act, except where the context otherwise requires—

  • [F51adopt” and “adopted”, in relation to powers, and “adoptable powers” have the meaning given by paragraph 1 of Schedule 2 of this Act;]

  • [F51advance secured on land” and “advance fully secured on land” have the meanings given by section 10(1) and (11) and references to class 1 or class 2 advances are to be construed in accordance with sections 11 and 12;]

  • F51[F52advance secured on third party land” has the meaning given by section 10(4A);]

  • [F53“annual accounts” has the meaning given in section 81B(1)]

  • the annual business statement” has the meaning given by section 74(1);

  • the applicable winding up legislation” and “the companies winding up legislation” have the meanings given by section 90;

  • [F54“the appropriate authority” means—

    (a)

    in relation to a building society which is a PRA-authorised person, the PRA; and

    (b)

    in relation to a building society which is not a PRA-authorised person, the FCA;]

  • [F55“associated undertaking” has the meaning given by section 119A;]

  • F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F57...

  • [F58“ballot” means an electronic ballot or a postal ballot, as the case may be;]

  • [F59borrowing members’ resolution” has the meaning given by paragraph 29(1) of Schedule 2 to this Act and, subject to paragraph 29(2), “borrowing member” has the meaning given by paragraph 5 of that Schedule;]

  • building society” means a building society incorporated (or deemed to be incorporated) under this Act;

  • [F60“building society insolvency”, “building society insolvency order” and “building society liquidator” shall be construed in accordance with Part 2 of the Banking Act 2009 as applied with modifications by section 90C above;

  • “building society special administration”, “building society special administration order” and “building society special administrator” shall be construed in accordance with Part 3 of the Banking Act 2009 as applied with modifications by section 90C above;]

  • [F61“Building Societies Act accounts” means Building Societies Act individual accounts and, where required, any Building Societies Act group accounts;]

  • [F61“Building Societies Act group accounts” has the meaning given by section 72E(3)(a)]

  • [F61“Building Societies Act individual accounts” has the meaning given by section 72A(2)(a)]

  • F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • [F63“the Companies Acts” has the meaning given by section 2(1) of the Companies Act 2006;]

  • [F64connected undertaking” means a subsidiary undertaking or an associated undertaking;]

  • [F65the court”, in relation to a building society, means the court which has jurisdiction under the applicable winding up legislation to wind up the society;]

  • F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • deferred shares” means shares of a class defined by order of the [F67Treasury], in a statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament;

  • [F68deposit” includes—

    (a)

    a loan; and

    (b)

    a subordinated deposit, that is to say, a deposit which, on a winding up, would fall to be repaid only after repayment in full had been made to the holders of shares in the society other than deferred shares,

    and cognate expressions shall be construed accordingly;]

  • dispose”, in relation to any property, includes the granting of any interest in or right over it;

  • [F58“electronic address” includes any number or address used for the purposes of receiving electronic communications which are sent electronically;]

  • [F58“electronic ballot”, in relation to an election or resolution of a building society, means the electronic ballot taking place, in accordance with paragraph 33A of Schedule 2 to this Act, in the case of the election or resolution;]

  • [F58“electronic communication” means an electronic communication within the meaning of the Electronic Communications Act 2000 the processing of which on receipt is intended to produce writing;]

  • executive”, in relation to a director, means a person who holds office as a director and also as chief executive, secretary or manager;

  • [F54“the FCA” means the Financial Conduct Authority;]

  • financial year” is to be construed in accordance with section 117;

  • [F61“group accounts” has the meaning given by section 72E(1);]

  • heritable security” means a security capable of being constituted over any land by disposition or assignation of that interest in security of any debt and of being recorded in the Register of Sasines or, as the case may be, in the Land Register of Scotland and includes a security constituted by a standard security and any other charge enforceable in the same manner as a standard security;

  • [F61IAS accounts” means IAS individual accounts or IAS group accounts;]

  • [F61IAS group accounts” has the meaning given by section 72E(3)(b);]

  • [F61IAS individual accounts” has the meaning given by section 72A(2)(b);]

  • [F61“individual accounts” has the meaning given by section 72A(1);]

  • [F69interest”, in relation to shares, includes dividends;]

  • F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • [F71land”, in the expression “loan secured on land”, has the meaning given by section 6A(8);

  • loan secured on land” and “loan fully secured on land” shall be construed in accordance with sections 6A and 6B respectively;]

  • manager”, in relation to a building society, means a person (other than the chief executive) employed by the society who, under the immediate authority of a director or the chief executive of the society exercises managerial functions or is responsible for maintaining accounts or other records of the society;

  • [F72member” shall be construed in accordance with paragraph 5 of Schedule 2 to this Act;]

  • memorandum” has the meaning given by paragraph 1 of Schedule 2 to the Act;

  • [F51mobile home loan” means a loan under section 15;]

  • mortgage” includes charge;

  • [F73mortgage debt”, in relation to a loan secured on land and any time, means the total amount outstanding at that time in respect of—

    (a)

    the principal of the loan;

    (b)

    interest on the loan; and

    (c)

    any other sum which the borrower is obliged to pay the society under the terms of the loan;]

  • F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • [F75“notice” means written notice but includes a notice in an electronic communication to the extent only that this Act provides for the manner in which the notice may be given electronically, and “notice to” and “notify” shall be construed accordingly;]

  • officer”, in relation to a building society, means any director, chief executive, secretary or manager of the society; and, in relation to any offence, “officer” also includes any person who purports to act as an officer of the society; and in relation to any other body corporate means the corresponding officers of that body;

  • officially notified”, in relation to the appointment or address of a director or the chief executive of a building society, means respectively notified to, and the last address notified to, the [F76FCA] under section 61(13) or 59(6), as the case may be;

  • [F77ordinary resolution” means a resolution which will be effective without being passed as a special resolution, shareholding members’ resolution or borrowing members’ resolution;]

  • [F78“own funds” means own funds as defined in Article 4(1)(118) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council;]

  • F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • [F58“postal ballot”, in relation to an election or resolution of a building society, means any postal ballot taking place by virtue of any rules of the society made in accordance with paragraph 33 of Schedule 2 to this Act, in the case of the election or resolution;]

  • [F54“the PRA” means the Prudential Regulation Authority;]

  • [F54PRA-authorised person” has the meaning in section 2B of the Financial Services and Markets Act 2000;]

  • the public file”, in relation to a building society, means the file relating to the society which the [F80FCA] is required to maintain under section 106;

  • [F51qualifying asset holding”, in relation to a building society, shall be construed in accordance with section 118;]

  • registered address”, in relation to a member of a building society, has the meaning given by paragraph 13 of Schedule 2 to this Act;

  • the repealed enactments” means the M2Building Societies Act 1962 or the M3Building Societies Act 1874 or, in relation to Northern Ireland, the M4Building Societies Act (Northern Ireland) 1967;

  • [F81residential property” has the meaning given by section 5(10);]

  • [F82share”, in relation to a building society, shall be construed in accordance with section 8;]

  • shareholder and depositor” includes a potential shareholder or depositor;

  • [F83shareholding member” has the meaning given by paragraph 5 of Schedule 2 to this Act;

  • shareholding members” resolution’ has the meaning given by paragraph 27A of that Schedule;]

  • special resolution” has the meaning given by paragraph 27 of Schedule 2 to this Act;

  • [F51subsidiary[F84has the meaning given by section 736 of] the M5Companies Act 1985;]

  • F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • summary financial statement” has the meaning given by section 76(1);

  • [F51total commercial assets”, in relation to a building society, means the aggregate of its class 1 assets, its class 2 assets and its class 3 assets.]

  • [F86undertaking” and “subsidiary undertaking” have the same meaning as in the Companies Acts (see sections 1161(1) and 1162 of, and Schedule 7 to, the Companies Act 2006);]

[F87(1ZA)In this Act references to the Bank of England do not include the Bank acting in its capacity as the Prudential Regulation Authority.]

[F88(1A)Any reference in this Act to the seal of the [F89FCA] is a reference to the seal provided for in regulations made under section 109(1)(b) of the Friendly Societies Act 1974 (and not to the [F90FCA’s] common seal).]

(2)In relation to [F91loans] secured on land in Scotland, “mortgage” means a heritable security, “mortgagor” and “mortgagee” mean respectively the debtor and creditor in a heritable security and connected expressions shall be construed accordingly.

F92(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F93(2B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94(2C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For the purposes of any provision of this Act referring to the value of a person’s shareholding in a building society—

(a)the value of a person’s shares shall be taken as the amount standing to his credit in respect of payments made F95... on the shares and interest credited F95... by way of capitalisation; and

(b)shares held by a person to whom, as the holder of the share, the society has made [F96a loan], shall be disregarded.

[F97(3A)Any reference in this Act (however expressed) to loans being owed to a building society or a subsidiary undertaking of a building society is a reference to their being so owed either at law or in equity.]

[F98(4)Subject to [F99section 9A(7)], the value in sterling of—

(a)any transaction effected by or with a building society or connected undertaking in another currency, or

(b)any assets or liabilities of a building society or connected undertaking denominated in another currency,

shall be determined for any purpose of this Act in accordance with directions given by the [F100appropriate authority] under this subsection.]

F101(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F51Definitions in s. 119(1) repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 53(1)(a), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pts. I(j)(k)(l)(xiv), II(w)(y)(z)(xxxi)(cc)(xvi)

F52Words in s. 119(1) inserted (3.1.1995) by 1994 c. 40, ss. 39, 82(2)(e), Sch. 11 para. 7(6)

F53Words in s. 119(1) substituted (22.12.2004) (with effect in accordance with art. 1(2) of the amending S.I.) by The Building Societies Act 1986 (International Accounting Standards and Other Accounting Amendments) Order 2004 (S.I. 2004/3380), art. 1, Sch. para. 7

F56Definition of “authorisation" in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F59Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(c); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F61Words in s. 119(1) inserted (22.12.2004) (with effect in accordance with art. 1(2) of the amending S.I.) by The Building Societies Act 1986 (International Accounting Standards and Other Accounting Amendments) Order 2004 (S.I. 2004/3380), art. 1, Sch. para. 7

F62Definitions of “the central office", “the Chief Registrar", “the Commission" and “the criteria of prudent management" in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F64Definition in s. 119(1) inserted (9.6.1997 for certain purposes only, 1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(d); S.I. 1997/1427, art. 2(k)(n)(xii); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F65Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(e); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F66Words in S. 119(1) repealed (1.12.2001) by S.I. 2001/3649 art. 199(3)

F67Words in the definition of “deferred shares" s. 119(1) substituted (17.8.2001 for certain purposes otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 197(a)(iv) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F68Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(g); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F69Definition in s. 119(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(h); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F70Definition of “Investor Protection Board" in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F71Definitions in s. 119(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(i); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F72Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(j); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F73Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(k); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F74Definition of “non-EEA laws" in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F77Definition in s. 119(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(l); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F79Definition of “prescribed" in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F81Definition in s. 119(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(m); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F82Definition in s. 119(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(n); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F83Definitions in s. 119(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(1)(o); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F88S. 119(1A) inserted (17.8.2001 for certain purposes otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 197(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F91Word in s. 119(2) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(2); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F92S. 119(2A)(2C) repealed (1.12.2001) by S.I. 2001/3649 art. 1999(4)

F94S. 119(2A)(2C) repealed (1.12.2001) by S.I. 2001/3649 art. 1999(4)

F95Words in s. 119(3)(a) ceased to have effect (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 53(3)(a); and repealed (1.12.1997) by 1997 c. 32, s. 46(2), Sch. 9; S.I. 1997/1427, art. 2(k)(n)(xiii); S.I. 1997/2668, art. 2, Sch. Pt. I(j)(k)(l)(xiv)(o)(vii)

F96Words in s. 119(3)(b) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(3)(b); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F97S. 119(3A) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(4); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F98S. 119(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 53(5); S.I. 1997/2668, art. 2, Sch. Pts. I(j)(l)(xiv), II(w)(z)(xxxi)

F99Words in S. 119(4) substituted (17.8.2001 for certain purposes otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 197(c)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F101S. 119(5) repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 17 Group 2

Modifications etc. (not altering text)

C3S. 119(1): Functions of the Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. III; S.I. 2001/3538, art. 2

C4Definition of “total commercial assets" modified by S.I. 1986/2168, art. 4(2)(a)(ii)(3)

Marginal Citations

[F102119A.Meaning of “associated undertaking”U.K.

(1)In this Act “associated undertaking”, in relation to a building society, means an undertaking (other than a subsidiary undertaking of the society)—

(a)in which the society (or the group of which the society is a member) holds a participating interest, and

(b)over whose operating and financial policy the society (or group) exercises a significant influence.

(2)A “participating interest” means an interest in the shares of the undertaking held on a long term basis for the purpose of securing a contribution to the activities of the society (or group) by the exercise of control or influence arising from or related to that interest.

(3)For this purpose—

(a)a holding of 20% or more of the shares of an undertaking is presumed to be a participating interest unless the contrary is shown;

(b)an “interest in shares” includes—

(i)an interest that is convertible into an interest in shares, and

(ii)an option to acquire shares or any such interest,

and an interest or option falls within sub-paragraph (i) or (ii) notwithstanding that the shares to which it relates are, until the conversion or the exercise of the option, unissued;

(c)an interest held on behalf of an undertaking is treated as held by it.

(4)A holding of 20% or more of the voting rights in an undertaking is presumed to result in the exercise of such influence as is mentioned in subsection (1)(b), unless the contrary is shown.

(5)For this purpose—

(a)the voting rights in an undertaking means the rights conferred on shareholders in respect of their shares or, in the case of an undertaking not having a share capital, on members, to vote on all, or substantially all, matters affecting the undertaking; and

(b)the provisions of paragraphs 5 to 11 of Schedule 7 to the Companies Act 2006 (rights to be taken into account and attribution of rights) apply in determining whether the society (or the group) holds 20% or more of the voting rights in an undertaking.

(6)References in this section to the group of which the society is a member at any time are to the undertakings that would fall to be included in the consolidation if consolidated group accounts were to be drawn up by the society at that time.

(7)An undertaking is not an “associated undertaking” of a building society for the purposes of this Act if, in such accounts, it would fall to be dealt with as a joint venture (that is, an undertaking managed jointly with one or more undertakings not included in the consolidation).]

120 Amendments, repeals, revocations and transitional and saving provisions.U.K.

(1)The enactment specified in Schedule 18 to this Act shall have effect with the amendments made by that Schedule.

(2)Subject to the saving provisions of Schedule 20, and of any order under section 121, the enactments specified in Schedule 19 to this Act are hereby repealed or revoked to the extent specified in the third column of that Schedule.

(3)Where any enactment amended or repealed or revoked by subsection (1) or (2) above extends to any part of the United Kingdom, the amendment or repeal or revocation extends to that part.

(4)The transitional and saving provisions of Schedule 20 to this Act shall have effect.

Modifications etc. (not altering text)

C5S. 120(2) excluded by S.I. 1986/2168, art. 2(2)

121 Power to make transitional and saving provisions.U.K.

(1)The Treasury may, by order made by statutory instrument, make such provision as appears to them to be necessary or expedient for the purposes of the transition to the provisions of this Act from the existing enactments applicable in England and Wales, Scotland or Northern Ireland to building societies.

(2)An order under this section may—

(a)modify any of the existing enactments or provisions of this Act, in particular in their application to proceedings pending before the Chief Registrar or the Commission;

(b)create criminal offences or otherwise provide for the enforcement of obligations imposed by or under the order;

(c)provide for the charging of fees but not of any charge in the nature of taxation.

(3)An order under this section which contains any provision authorised by subsection (2)(b) or (c) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4)In this section “the existing enactments” means the enactments in force at the passing of this Act, including any enactment amended by Schedule 18 to this Act.

Modifications etc. (not altering text)

122 Northern IrelandU.K.

(1)F103... subject to section 120(3), this Act extends to Northern Ireland.

(2)Subject to any Order made by virtue of subsection (1)(a) of section 3 of the M6Northern Ireland Constitution Act 1973 building societies shall not be a transferred matter for the purposes of that Act but shall for the purposes of subsection (2) of that section be treated as specified in Schedule 3 to that Act.

Textual Amendments

F103Words in s. 122(1) repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 17 Group 2

Marginal Citations

F104123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments

F104S. 123 repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

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.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources