The Building Societies (General Charge and Fees) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations supersede the Building Societies (General Charge and Fees) Regulations 1996, which are revoked. They provide for a general charge to be paid by authorised building societies towards the expenses of the Building Societies Commission. The charge is levied with respect to the Commission’s accounting year beginning on 1st April 1997 and ending on 31st March 1998 and is expected to raise £2.25 million in aggregate. This is about 35% lower than the aggregate raised in 1996—97 as a result of an estimated surplus to be carried forward into 1997—98. Each society is required to pay a sum of £2,250 plus a sum equal to 0.00081 per cent of its assets, up to £30,000 million, and 0,000405 per cent of its assets above that amount, or in the case of a society formed by a recent amalgamation, a sum of £4,500 plus a sum equal to the same percentage of the aggregated value of the uniting societies. All registered societies will pay a reduced charge, compared with 1996—97, but the effect on individual societies will mainly depend on their asset growth over the relevant financial year.

The Regulations also provide for fees to be paid in respect of particular functions of the Building Societies Commission in relation to mergers of societies and transfers of business to commercial companies and of the Central Office of the Registry of Friendly Societies under the Building Societies Act 1986, and fees to be paid by persons wishing to inspect or receive copies of documents in the custody of the Central Office. Fees have been increased on average by 3%.

A compliance cost assessment of the effect that this instrument would have on the cost of business is available from the Secretary, Building Societies Commission, 30—34 Kingsway, London WC2B 6ES.