The Building Societies (Investigation of Complaints) Order 1990

Explanatory Note

(This note is not part of the Order)

This Order varies Part II of Schedule 12 to the Building Societies Act 1986 which prescribes the matters action in relation to which must be subject to investigation under a complaints scheme if it is to qualify for recognition for the purposes of investigations under section 83 of the Act.

Every building society authorised to raise money by shareholdings or deposits must, pursuant to section 83, be a member of one or more recognised schemes which between them provide for complaints in relation to every prescribed matter to be subject to investigation. Each society must also secure that bodies associated with it accede to such schemes in relation to prescribed matters within the powers of such bodies.

The newly prescribed matters correspond to powers conferred on societies by the variation of the powers in Schedule 8 of the Act by the Building Societies (Commercial Assets and Services) Order 1988 (S.I. 1988/1141),or by designation of bodies which are permitted to be the subject of investment and support by building societies. Appropriate mortgage corporations, which advance money on the security of land are designated as such bodies by the Building Societies (Designation of Qualifying Bodies) Order 1990 (S.I. 1990/1434).

The newly prescribed matters, which a complaints scheme must cover are the operation etc of accounts by associated mortgage companies advancing more on the security of land (paragraph 1 of the Schedule to the Order) banking services, trusteeship and executorship (paragraph 2 of the Schedule, substituting new paragraphs 6, 7 and 8 for paragraphs 6 to 9 of Schedule 12 to the Act). The substituted paragraph 6 replaces the more limited categories of money transmission services, foreign exchange facilities, agency payments and receipts and provision of credit with the comprehensive category of banking services. Paragraphs 7 and 8 correspond respectively with the new powers to provide trusteeship and executorship facilities.