The Building Societies (Accounts and Related Provisions) (Amendment) Regulations 2008

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Building Societies (Accounts and Related Provisions) Regulations 1998 (S.I. 1998/504) (“the principal Regulations”) to implement in part Directive 2006/46/EC of the European Parliament and of the Council on the annual and consolidated accounts of certain types of companies, banks and other financial institutions (O.J. L 224, 16/8/2006, p.1) (“the Directive”).

Regulation 3 corrects a defect in regulation 10(1) as amended by S.I. 2007/859. As this instrument contains other amendments to the principal Regulations, it is not being issued free of charge to purchasers of the defective instrument.

Regulation 4 amends Schedule 5 to the principal Regulations, to require societies preparing Building Societies Act accounts (see sections 72A(2) and 72E(3) of the Building Societies Act 1986 (c. 53), inserted by S.I. 2004/3380) to give certain information about transactions with related parties in the notes to those accounts.

Regulation 5 amends Schedule 7 to the principal Regulations, to enable societies preparing Building Societies Act accounts to value a wider range of financial liabilities at fair value in accordance with international accounting standards.

A transposition note showing how the main provisions of the Directive (as it applies to building societies) will be transposed into UK law is available from HM Treasury. Copies may be obtained from the Savings and Investment Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and the note will be available on the Treasury website (www.hm-treasury.gov.uk).

A full regulatory impact assessment of the effect that this instrument will have on the costs of business is also available from HM Treasury at the above address, and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).