The Building Societies (Liquid Asset) (Amendment) Regulations 1991

Statutory Instruments

1991 No. 1785

BUILDING SOCIETIES

The Building Societies (Liquid Asset) (Amendment) Regulations 1991

Made

30th July 1991

Laid before Parliament

31st July 1991

Coming into force

2nd August 1991

The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred upon it by section 21(7) of the Building Societies Act 1986(1), and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Building Societies (Liquid Asset) (Amendment) Regulations 1991 and shall come into force on 2nd August 1991.

Amendment of previous Regulations

2.  There shall be added to Part I of the Schedule to the Building Societies (Liquid Asset) Regulations 1987(2) (“the 1987 Regulations”):

“26.   Deposits with any society, other than subordinated debt.”

3.  Paragraph 7 of Part II of the Schedule to the 1987 Regulations (which restricts a liquid asset to an asset issued by a society with total assets in its latest balance sheet of not less than £1,000 million) shall cease to have effect.

4.  Paragraphs 1 and 2 of Part III of the Schedule to the 1987 Regulations (which provide that a liquid asset issued by a society which comes within paragraph 18 or 25 of Part I of the Schedule may be held only where the aggregate values of such assets so held did not exceed 2.5 per cent of the total assets of the holding society) shall cease to have effect.

In witness whereof the common seal of the Building Societies Commission is hereunto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 30th July 1991.

L.S.

Norman Digance

Secretary to the Commission

We consent to this Order.

Norman Lamont

Sydney Chapman

Two of the Lords Commissioners of Her Majesty’s Treasury

30th July 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations add a description of assets to Part I of the Schedule to the Building Societies (Liquid Asset) Regulations 1987 namely deposits with any society; remove the restriction in those Regulations which restrict a liquid asset to an asset issued by a society with total assets in its latest balance sheet of not less than £1,000 million; and, remove the restriction on a building society’s holding of certificates of deposit or floating rate notes issued by any building society so that they shall not exceed, in aggregate 2.5 per cent of the amount of the total assets of the holding society in its latest balance sheet.

(1)

1986 c. 53.

(2)

S.I. 1987/1499, amended by S.I. 1989/1701.