The Building Societies (Designation of Qualifying Bodies) Order 1990

Meaning of business percentage certification condition for estate agency vehicles

6.—(1) In this Schedule “the business percentage certification condition for estate agency vehicles” means a condition to the effect that where a society holds shares or corresponding membership rights in an appropriate estate agency vehicle—

(a) the society shall for each financial year of the vehicle ending more than 18 months after the acquisition of such shares or rights seek to obtain within four months after the end of that year a certificate signed by a director of the vehicle (and adequately supported by a report of its auditors) stating that at least 40 per cent of the gross income of the vehicle (or, where the vehicle has subordinate organisations, of the consolidated gross income of the vehicle and those subordinate organisations) for that year was derived from the carrying on of estate agency work carried on in countries in which the society, at any time in that year, carried on the business of making advances secured on land, and

(b) if no such certificate is obtained by the society for two successive financial years of the estate agency vehicle, the society shall dispose of its shares or corresponding membership rights in that vehicle as soon as it is conveniently practicable to do so without undue loss.

(2) For the purposes of subparagraph (1) above a certificate is adequately supported by a report of the auditors of an estate agency vehicle where the auditors have reported at least to the effect that—

(a) they have examined the certificate,

(b) they have inquired into the affairs of the vehicle, and obtained information from the society, to an extent necessary to consider whether there is any significant likelihood that the certificate is untrue in any material particular, and

(c) they consider that there is no significant likelihood that the certificate is untrue in any material particular.