(1)Section 7 of the Building Societies Act 1986 (the funding limit) is amended as follows.
(2)In subsection (3) (disregarded funds), after paragraph (b) insert—
“(c)amounts drawn by the society from a specified liquidity insurance facility provided by the Bank of England;
(d)amounts represented by specified debt instruments issued by the society with a view to maintaining the minimum requirement for own funds and eligible liabilities;
(e)sums received by the society under a sale and repurchase agreement entered into by the society with a view to complying with a specified PRA rule.”
(3)After subsection (9) insert—
“(9A)In subsections (3) and (9B)—
“liquidity insurance facility” means a facility provided by the Bank of England enabling a building society to borrow cash or other relatively liquid assets in exchange for collateral (and “relatively liquid assets” means assets which are more liquid than the collateral provided);
“the minimum requirement for own funds and eligible liabilities” means the minimum requirement set by the Bank of England in a direction under section 3A(4B)(a) of the Banking Act 2009;
“PRA rule” means a rule made by the PRA under the Financial Services and Markets Act 2000;
“specified” means specified, or of a description specified, in regulations under subsection (9B).
(9B)The Treasury may by regulations made by statutory instrument specify, or specify descriptions of—
(a)liquidity insurance facilities, for the purposes of subsection (3)(c);
(b)debt instruments, for the purposes of subsection (3)(d);
(c)PRA rules, for the purposes of subsection (3)(e).
(9C)Regulations under subsection (9B) may make provision by reference to a document or rule as it has effect from time to time.
(9D)A statutory instrument containing regulations under subsection (9B) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”