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The Building Societies (Accounts and Related Provisions) Regulations 1998

Type Statutory-Instrument

Publication 1998-03-03

Last updated 2022-06-06

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Other significant holdings of society or group

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Construction of references to shares held by society or group

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PART III — SUPPLEMENTARY PROVISIONS

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SCHEDULE 7 — ACCOUNTING PRINCIPLES AND RULES

PART I — ACCOUNTING PRINCIPLES

1

Subject to paragraph 7, the amounts to be included in respect of all items shown in a society’s annual accounts shall be determined in accordance with the principles set out in this Part of this Schedule.

2

The society shall be presumed to be carrying on business as a going concern, and so, where group accounts are prepared, shall the society and its subsidiary undertakings.

3

Accounting policies shall be applied consistently within the same accounts and from one financial year to the next.

4

(1) The amount of any item shall be determined on a prudent basis, and in particular—

(a) only profits realised at the date of the balance sheet shall be included in the income and expenditure account; and

(b) all liabilities ... which have arisen ... in respect of the financial year to which the accounts relate or a previous financial year shall be taken into account, including those which only become apparent between the balance sheet date and the relevant date.

(2) For the purposes of sub-paragraph (1), the relevant date is the date of signature of the balance sheet of the society on behalf of the board of directors under section 80 of the Act (signing of balance sheet and of documents).

5

Except so far as these Regulations otherwise specify, income and charges relating to the financial year to which the accounts relate shall be taken into account without regard to the date of receipt or payment.

6

In determining the aggregate amount of any item the amount of each individual asset or liability that falls to be taken into account shall be determined separately.

PART II — DEPARTURE FROM ACCOUNTING PRINCIPLES

7

If it appears to the directors of a society that there are special reasons for departing from any of the principles stated in Part I in preparing annual accounts in respect of any financial year, they may do so, but particulars of the departure, the reasons for it, and its effect shall be given in a note to the annual accounts.

PART III — FIXED ASSETS

General rules

8

(1) Subject to any provision for depreciation or diminution in value made in accordance with paragraph 9 or 10, the amount to be included in respect of any fixed asset shall be its cost unless it is valued in accordance with paragraph 13, 28, 31A, 31C or 31D.

(a) Assets included in items D and E in Parts I and II of Schedule 2 shall be valued as fixed assets.

(b) Other assets falling to be included in the balance sheet shall be valued as fixed assets where they are intended for use on a continuing basis in the normal course of the activities of the society or of the society and its subsidiary undertakings.

9

In the case of any fixed asset which has a limited useful economic life, the amount of—

(a) the cost, or

(b) where it is estimated that any such asset will have a residual value at the end of the period of its useful economic life, its cost less that estimated residual value,

shall be reduced by provisions for depreciation calculated to write off that amount systematically over the period of the asset’s useful economic life.

10

(1) Where a fixed asset investment of a description falling to be included under Asset item C of Parts I and II of Schedule 2, or any liquid asset held as a financial fixed asset, has diminished in value, provisions for diminution in value may be made in respect of it, and the amount to be included in respect of it may be reduced accordingly.

(2) Any such provisions as are mentioned in sub-paragraph (1) and which are not shown in the income and expenditure accounts shall be disclosed, either separately or in aggregate, in a note to the accounts, analysed according to balance sheet category.

(3) Provisions for diminution in value shall be made in respect of any fixed asset which has diminished in value if the reduction in its value is expected to be permanent (whether its useful economic life is limited or not), and the amount to be included in respect of it shall be reduced accordingly, and any such provisions which are not shown in the income and expenditure accounts shall be disclosed, either separately or in aggregate, in a note to the accounts, analysed according to balance sheet category.

(4) Where the reasons for which any provision in respect of fixed assets (whether or not it is one to which sub-paragraph (1) or (3) applies) was made have ceased to apply to any extent, that provision shall be written back to the extent that it is no longer necessary; and any amounts written back in accordance with this sub-paragraph which are not shown in the income and expenditure accounts shall be disclosed (either separately or in aggregate) in a note to the accounts.

Development costs

11

(1) Notwithstanding that amounts representing “development costs” may be included under Asset item D in Parts I and II of Schedule 2, an amount may only be included in a society’s balance sheet in respect of development costs in accordance with generally accepted accounting principles.

(2) If any amount is included in a society’s balance sheet in respect of development costs, the following information shall be given in a note to the accounts—

(a) the period over which the amount of those costs originally capitalised is being or is to be written off, and

(b) the reasons for capitalising the development costs in question.

Goodwill

12

(1) The application of paragraphs 8 to 10 in relation to goodwill (in any case where goodwill is treated as an asset) is subject to the following provisions of this paragraph.

(2) Subject to sub-paragraph (3), the amount of the consideration for any goodwill acquired by a society shall be reduced by provisions for amortisation calculated so as to write off that amount systematically over a period chosen by the directors of the society.

(3) The period chosen shall not exceed the useful economic life of the goodwill.

Financial fixed assets

13

(1) Debt securities including securities held as financial fixed assets shall be included in the balance sheet at an amount equal to their maturity value plus any premium, or less any discount, on their purchase, subject to the following provisions of this paragraph and to paragraphs 31A, 31C and 31D.

(2) The amount included in the balance sheet with respect to such a security as is mentioned in sub-paragraph (1) purchased at a premium shall be reduced each financial year on a systematic basis so as to write the premium off over the period to the maturity date of the security, and the amounts written off shall be charged to the income and expenditure account for the relevant financial years.

(3) The amount included in the balance sheet with respect to such a security purchased at a discount shall be increased each financial year on a systematic basis so as to extinguish the discount over the period to the maturity date of the security, and the amounts by which the amount is increased shall be credited to the income and expenditure account for the relevant financial years.

(4) The notes to the accounts shall disclose the amounts of any unamortised premium or discount not extinguished which are included in the balance sheet by virtue of sub-paragraph (1).

(5) For the purposes of this paragraph, “premium” means any excess of the amount paid for a security over its maturity value and “discount” means any deficit of the amount paid for a security over its maturity value.

PART IV — CURRENT ASSETS

14

The amount to be included in respect of Asset items A.3, A.4, B and C in Parts I and II of Schedule 2 shall be, subject to paragraphs 15, 16, 31A, 31C and 31D, their cost.

15

(1) If the net realisable value of any current asset is lower than its cost the amount to be included in respect of that asset shall be the net realisable value.

(2) Where the reasons for which any provision for diminution in value was made in accordance with sub-paragraph (1) have ceased to apply to any extent, that provision shall be written back to the extent that it is no longer necessary.

(16)

(1) Subject to paragraph 15, the amount to be included in the balance sheet in respect of transferable securities not held as financial fixed assets may be the higher of their cost or their market value at the balance sheet date.

(2) The difference between the cost of any securities included in the balance sheet at a valuation under sub-paragraph (1) and their market value shall be shown (in aggregate) in the notes to the accounts.

PART V — OTHER ACCOUNTING RULES

General rules

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(1) Without prejudice to paragraph 3(6)(c) of Part III of Schedule 2, amounts in respect of items representing assets or income may not be set off against amounts in respect of items representing as the case may be liabilities or expenditure, or vice versa.

(2) Charges required to be included in items 12(a) and 12(b) in Parts I and II of Schedule 1 may, however, be set off against income required to be included in items 13(a) and 13(b) of Parts I and II of that Schedule and the resulting figure shown as a single item.

(3) Charges required to be included in item 14 in Parts I and II of Schedule 1 may also be set off against income required to be included in item 15 in Parts I and II of Schedule 1 and the resulting figure shown as a single item.

18

(1) Assets shall be shown under the relevant balance sheet headings even where the society has pledged them as security for its own liabilities or for those of third parties, or has otherwise assigned them as security to third parties.

(2) A society shall not include in its balance sheet assets pledged or otherwise assigned to it as security, unless such assets are in the form of cash in the hands of the society.

19

Preliminary expenses, expenses of and commission on any issue of subscribed capital and costs of research shall not be treated as assets in a society’s balance sheet.

20

Assets acquired in the name of and on behalf of third parties shall not be shown in the balance sheet.

Excess of money owed over value received as an asset item

21

(1) Where the amount repayable on any debt owed by a society is greater than the value of the consideration received in the transaction giving rise to the debt, the amount of the difference may be treated as an asset.

(2) Where any such amount is so treated—

(a) it shall be written off by reasonable amounts each year and must be completely written off before repayment of the debt; and

(b) if the current amount is not shown as a separate item in the society’s balance sheet it must be disclosed in a note to the accounts.

Determination of cost

22

(1) The cost of an asset shall be determined by adding to the actual price paid any expenses incidental to its acquisition.

(2) The cost of an asset constructed by the society shall be determined by adding to the purchase price of the raw materials and consumables used the amount of the costs incurred by the society which are directly attributable to the construction of that asset.

(3) In addition, there may be included in the cost of an asset constructed by the society—

(a) a reasonable proportion of the costs incurred by the society which are only indirectly attributable to the construction of that asset, but only to the extent that they relate to the period of construction; and

(b) interest on capital borrowed to finance the construction of that asset, to the extent that it accrues in respect of the period of construction,

provided, however, in a case within sub-paragraph (b), that the inclusion of the interest in determining the cost of that asset and the amount of the interest so included is disclosed in a note to the accounts.

23

(1) Subject to the qualification mentioned below, the cost of any assets which are fungible assets (including liquid assets) may be determined by the application of any of the methods mentioned in sub-paragraph (2) in relation to any such assets of the same class, but the method chosen must be one which appears to the directors to be appropriate to the circumstances of the society.

(2) Those methods are—

(a) the method known as “first in, first out” (FIFO),

(b) the method known as “last in, first out” (LIFO),

(d) any other method similar to any of the methods mentioned above.

(3) Where in the case of any society—

(a) the cost of assets falling to be included under any item shown in the society’s balance sheet has been determined by the application of any method permitted by this paragraph, and

(b) the amount shown in respect of that item differs materially from the relevant alternative amount given below in this paragraph,

the amount of that difference shall be disclosed in a note to the accounts.

(4) Subject to sub-paragraph (5), for the purposes of sub-paragraph (3)(b), the relevant alternative amount, in relation to any item shown in a society’s balance sheet, is the amount which would have been shown in respect of that item if assets of any class included under that item at an amount determined by any method permitted by this paragraph had instead been included at their replacement cost as at the balance sheet date.

(5) The relevant alternative amount may be determined by reference to the most recent actual cost before the balance sheet date of assets of any class included under the item in question instead of by reference to their replacement cost as at that date, but only if the former appears to the directors of the society to constitute the more appropriate standard of comparison in the case of assets of that class.

(6) For the purposes of this paragraph, assets of any description shall be regarded as fungible if assets of that description are substantially indistinguishable one from another.

24

To the extent that debt securities included in a society’s balance sheet include assets valued at cost, the method of arriving at their cost shall be disclosed in the notes to the annual accounts.

Substitution of original amount where cost unknown

25

Where there is no record of the cost of any asset acquired by a society or of any price, expenses or costs relevant for determining its cost in accordance with paragraph 22, or any such record cannot be obtained without unreasonable expense or delay, its cost shall be taken for the purposes of paragraphs 8 to 16 to be the value ascribed to it in the earliest available record of its value made on or after its acquisition by the society.

PART VI — ALTERNATIVE ACCOUNTING RULES

26

The rules set out in paragraphs 8 to 25 of this Schedule are referred to below in this Schedule as the historical cost accounting rules.

27

Subject to paragraphs 29, 30 and 31, the amounts to be included in respect of assets of any description mentioned in paragraph 28 may be determined on any basis so mentioned.

28

(1) Intangible fixed assets, other than goodwill, may be included at their current cost.

(2) Tangible fixed assets may be included at a market value determined as at the date of their last valuation or at their current cost.

(3) Investments of any description falling to be included under Asset items C.2 and 3 in Parts I and II of Schedule 2 and under Asset item C.4 in Part II of Schedule 2, and all other securities held as financial fixed assets may be included either—

(a) at a market value determined as at the date of their last valuation, or

(b) at a value determined on any basis which appears to the directors to be appropriate in the circumstances of the society,

but in the latter case particulars of the method of valuation adopted and of the reasons for adopting it shall be disclosed in a note to the accounts.

(4) Investments of any description not held as financial fixed assets (if not valued in accordance with paragraph 16) may be included at their current cost.

29

(1) Where the value of any asset of a society is determined on any basis mentioned in paragraph 28, that value shall be, or (as the case may require) shall be the starting point for determining the amount to be included in respect of that asset in the society’s accounts, instead of its cost or any value previously so determined for that asset; and methods of depreciation to be used pursuant to these Regulations shall apply accordingly in relation to any such asset with the substitution for any reference to its cost of a reference to the value most recently determined for that asset on any basis mentioned in paragraph 28.

(2) The amount of any provision for depreciation required in the case of any fixed asset by paragraph 9 or 10 as it applies by virtue of sub-paragraph (1) is referred to below in this paragraph as the adjusted amount, and the amount of any provision which would be required by that paragraph in the case of that asset according to the historical cost accounting rules is referred to as the historical cost amount.

(3) Where sub-paragraph (1) applies in the case of any fixed asset the amount of any provision for depreciation in respect of that asset included in any item shown in the income and expenditure account in respect of amounts written off assets of the description in question may be the historical cost amount instead of the adjusted amount, provided that the amount of any difference between the two is shown separately in the income and expenditure account or in a note to the accounts.

30

(1) This paragraph applies where the amounts to be included in respect of any assets of a society have been determined on any basis mentioned in paragraph 28.

(2) The items affected and the basis of valuation adopted in determining the amounts of the assets in question in the case of each such item shall be disclosed in a note to the accounts.

(3) In the case of each balance sheet item affected either—

(a) the comparable amounts determined according to the historical cost accounting rules; or

(b) the differences between those amounts and the corresponding amounts actually shown in the balance sheet in respect of that item,

shall be shown separately in the balance sheet or in a note to the accounts.

(4) In sub-paragraph (3), references in relation to any item to the comparable amounts determined as there mentioned are references to—

(a) the aggregate amount which would be required to be shown in respect of that item if the amounts to be included in respect of all the assets covered by that item were determined according to the historical cost accounting rules; and

(b) the aggregate amount of the cumulative provisions for depreciation or diminution in value which would be permitted or required in determining those amounts according to those rules.

31

(1) With respect to any determination of the value of an asset of a society on any basis mentioned in paragraph 28, the amount of any profit or loss arising from that determination (after allowing, where appropriate, for any provisions for depreciation or diminution in value made otherwise than by reference to the value so determined and any adjustments of any such provisions made in the light of that determination) shall be credited or, as the case may be, debited to a separate reserve (referred to in these Regulations as “the revaluation reserve”).

(2) The revaluation reserve shall be reduced to the extent that the amounts standing to the credit of that reserve are no longer necessary for the purpose of the accounting policies adopted by the society, but an amount may only be transferred—

(a) from the revaluation reserve to the income and expenditure account if—

(i) the amount in question was previously charged to that account, or

(ii) it represents a realised profit, or

(b) to or from the revaluation reserve in respect of the taxation relating to any profit or loss credited or debited to the reserve.

(3) The treatment for taxation purposes of amounts credited or debited to the revaluation reserve shall be disclosed in a note to the accounts.

PART VII — ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

32

(1) Subject to the following sub-paragraphs, amounts to be included in respect of assets and liabilities denominated in foreign currencies shall be expressed in sterling after translation at an appropriate spot rate of exchange prevailing at the balance sheet date.

(2) An appropriate rate of exchange prevailing on the date of purchase may however be used for assets held as financial fixed assets and assets to be included under Asset items D and E in Parts I and II of Schedule 2, if they are not covered or not specifically covered in either the spot or forward currency markets.

(3) An appropriate spot rate of exchange prevailing at the balance sheet date shall be used for translating uncompleted spot exchange transactions.

(4) An appropriate forward rate of exchange prevailing at the balance sheet date shall be used for translating uncompleted forward exchange transactions.

(5) This paragraph does not apply to assets or liabilities held, or any transaction entered into, for hedging purposes, or to any assets or liabilities which are themselves hedged.

33

(1) Subject to sub-paragraph (2), any difference between the amount to be included in respect of an asset or liability under paragraph 32 and the book value, after translation into sterling at an appropriate rate, of that asset or liability, shall be credited or, as the case may be, debited to the income and expenditure account.

(2) In the case however of assets held as financial fixed assets, of assets to be included in Asset items D and E in Parts I and II of Schedule 2, and of transactions undertaken to cover such assets, any such difference shall be deducted from or credited to the general reserve included in the balance sheet.

SCHEDULE 8 — DIRECTORS' REPORT

Miscellaneous

1

There shall be stated the names of the persons who, at any time during the financial year, were directors of the society.

2

The directors' report shall contain—

(a) a statement of the business objectives and activities of the society and of any connected undertaking;

(b) particulars of the events during the financial year considered by the directors of the society to have an important effect on the society or any connected undertaking;

(c) particulars of any events which have occurred since the end of the financial year and which are considered by the directors of the society to have an important effect on the society or any connected undertaking; and

(d) an indication of the opinion of the directors of the society as to the developments which they consider likely to happen in the business of the society or any connected undertaking.

Land and buildings

3

If, in the case of such of the fixed assets of the society or of any subsidiary undertaking as consist in interests in land and buildings, their market value (as at the end of the financial year) differs substantially from the amount at which they are included in the balance sheet, and the difference is, in the directors' opinion, of such significance as to require that the attention of members of the society should be drawn to it, the report shall indicate the difference with such degree of precision as is practicable.

Political and charitable gifts

4

(1) The following applies if the society or any subsidiary undertaking of the society has in the financial year given money for political purposes or charitable purposes or both.

(2) If the money given exceeded £200 in amount, there shall be contained in the directors' report for the year—

(a) in the case of each of the purposes for which the money has been given, a statement of the amount of money given for that purpose; and

(b) in the case of political purposes for which money has been given, the following particulars (so far as is applicable)—

(i) the name of each person to whom money has been given for those purposes exceeding £200 in amount and the amount of money given; and

(ii) if money exceeding £200 in amount has been given by way of donation or subscription to a political party, the identity of the party and the amount of money given.

(2A) In addition to any statement required by sub-paragraph (2), if the money has been given by way of a transfer under section 2 of the Dormant Bank and Building Society Accounts Act 2008 or a transfer required by section 2A(8) of that Act, there shall be contained in the directors’ report for the year—

(a) the name of each charity to which such a transfer was made; and

(b) the amount transferred to each such charity.

(3) For the purposes of this paragraph a society or a subsidiary undertaking is to be treated as giving money for political purposes if, directly or indirectly—

(a) it gives a donation or subscription to a political party of the United Kingdom or any part of it; or

(b) it gives a donation or subscription to a person who, to the society’s knowledge (or, as the case may be, that of the subsidiary undertaking), is carrying on, or proposing to carry on, any activities which can, at the time at which the donation or subscription was given, reasonably be regarded as likely to affect public support for such a political party as is mentioned.

(4) For the purposes of this paragraph money given for charitable purposes to a person who, when it was given, was ordinarily resident outside the United Kingdom shall be left out of account.

(5) In this paragraph, “charitable purposes” means purposes which are exclusively charitable; and, as respects Scotland, “charitable” is to be construed as if it were contained in the Income Tax Acts.

Directors' interests

5

(1) Subject to sub-paragraphs (2) and (3), the directors' report shall state the following, with respect to each person who, at the end of the financial year, was a director of the society—

(a) whether or not he was at the end of that year interested in shares in, or debentures of, any connected undertaking of the society; and

(b) if he was so interested—

(i) the number and amount of shares in, and debentures of, each such undertaking (specifying it) in which he was then interested;

(ii) whether or not he was, at the beginning of that year (or, if he was not then a director, when he became one), interested in shares in, or debentures of, that or any other such undertaking; and

(iii) if he was, the number and amount of shares in, and debentures of, each undertaking (specifying it) in which he was interested at the beginning of the financial year or (as the case may be) when he became a director.

(2) The particulars required by sub-paragraph (1) may be given by way of notes to the society’s annual accounts in respect of the financial year, instead of being stated in the directors' report.

(3) Particulars required by sub-paragraph (1) are not required to be given in respect of directors' nominee shareholdings, held on behalf of the society.

(4) Any changes in the details disclosed under sub-paragraph (1) between the end of the year and the relevant date must be disclosed in the directors' report and any such change after that date may be so disclosed.

(5) For the purposes of sub-paragraph (4) “the relevant date” is—

(a) the date one month prior to the date of the notice of the society’s annual general meeting; or

(b) if earlier, the date on which approval, under section 80 of the Act, of components of the annual accounts is completed.

(6) In this paragraph, the interest of the spouse, civil partner, infant son or infant daughter of a director of a society (not being himself or herself a director of the society) is to be treated as an interest of the director; and “son” includes step-son and “daughter” includes step-daughter and “infant” means, in relation to Scotland, a person under the age of 18 years.

(7) In this paragraph, any reference to an interest of a director, or any other person mentioned in sub-paragraph (6), in shares or debentures shall be interpreted in accordance with Schedule 1 to the Companies Act 2006.

Employee information

6

(1) This paragraph applies to the directors' report where the average number of persons employed by the society in each month during the financial year exceeded 250.

(2) For the purposes of sub-paragraph (1) the average number is the quotient derived by dividing, by the number of complete calendar months in the financial year, the number derived by ascertaining, in relation to each of those months, the number of persons who, under contracts of service, were employed in the month (whether throughout it or not) by the society, and adding up the numbers ascertained.

(3) The directors' report shall where this paragraph applies contain a statement describing such policy as the society has applied during the financial year—

(a) for giving full and fair consideration to applications for employment by the society made by disabled persons, having regard to their particular aptitudes and abilities;

(b) for continuing the employment of, and for arranging appropriate training for, employees of the society who have become disabled persons during the period when they were employed by the society; and

(4) The directors' report shall where this paragraph applies also contain a statement describing the action that has been taken during the financial year to introduce, maintain or develop arrangements aimed at—

(a) providing employees systematically with information on matters of concern to them as employees;

(b) consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests;

(d) achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of the society.

(5) In this paragraph—

(a) “employment” means employment other than employment to work wholly or mainly outside the United Kingdom, and “employed” and “employee” shall be construed accordingly; and

(b) “disabled person” has the same meaning as in the Disability Discrimination Act 1995[^f00022].

Percentages

7

(1) The directors' report prepared by the directors of a society whose annual accounts are Building Societies Act accounts shall disclose, in accordance with sub-paragraph (2)—

(a) free capital as a percentage of the total of Liability items A to D in Part I or II of Schedule 2; and

(b) gross capital as a percentage of the total of Liability items A to D in Part I or II of Schedule 2.

(1A) The directors’ report prepared by the directors of a society whose annual accounts are IAS accounts shall disclose, in accordance with sub-paragraph (2)—

(a) free capital as a percentage of the total of the liability items listed in sub-paragraph (1B) as shown in the annual accounts; and

(b) gross capital as a percentage of the total of the liability items listed in sub-paragraph (1B) as shown in the annual accounts.

(1B) The liability items are shares, amounts owed to credit institutions, amounts owed to other customers, and debt securities in issue.

(2) The matters required to be disclosed by sub-paragraphs (1) and (1A) shall be disclosed—

(a) where the society is a single accounts society, in relation to the society; and

(b) where the society is a group accounts society, in relation to the society and its subsidiary undertakings.

Mortgage arrears

8

(1) The directors' report prepared by the directors of a society whose annual accounts are Building Societies Act accounts shall disclose in respect of mortgage accounts of the society and of any subsidiary undertaking twelve or more months in arrears at the balance sheet date—

(a) the number of such accounts;

(b) the total amount (before any provision for bad and doubtful debts or interest in suspense) outstanding on such accounts which is included in Asset item B in Part I or II of Schedule 2; and

(2) The directors’ report prepared by the directors of a society whose annual accounts are IAS accounts shall disclose in respect of mortgage accounts of the society and of any subsidiary undertaking twelve or more months in arrears at the balance sheet date—

(a) the number of such accounts;

(b) the total amount (before any provision for impairment losses) outstanding on such accounts; and

Supplier payment policy

9

(1) The directors' report shall state, with respect to the next following financial year—

(a) whether in respect of some or all of its suppliers it is the society’s policy to follow any code or standard on payment practice and, if so, the name of the code or standard and the place where information about, and copies of, the code or standard can be obtained,

(b) whether in respect of some or all of its suppliers it is the society’s policy—

(i) to settle the terms of payment with those suppliers when agreeing the terms of each transaction,

(ii) to ensure that those suppliers are made aware of the terms of payment, and

(iii) to abide by the terms of payment,

(c) where the society’s policy is not as mentioned in sub-paragraph (a) or (b) in respect of some or all of its suppliers, what its policy is with respect to the payment of those suppliers,

and if the society’s policy is different for different suppliers or classes of suppliers, the report shall identify the suppliers to which the different policies apply.

In this sub-paragraph references to the society’s suppliers are references to persons who are or may become its suppliers.

(2) The report shall also state the number of days which bears to the number of days in the financial year the same proportion as

$$X bears to Y$where—Xthe aggregate of the amounts which were owed to trade creditors at the end of the year; andYthe aggregate of the amounts in which the society was invoiced by suppliers during the year.$

(3) For the purposes of sub-paragraphs (1) and (2) a person is a supplier of the society at any time if—

(a) at that time, he is owed an amount in respect of goods or services supplied, and

(b) that amount would be included under the heading corresponding to liability item E.4 (trade creditors) in Format 1 of the balance sheet formats set out in Part 1 of Schedule 1 to the Large and Medium–sized Companies and Groups (Accounts and Reports) Regulations 2008 if—

(i) the society’s accounts fell to be prepared as at that time,

(ii) those accounts were prepared in accordance with Schedule 1 to those Regulations, and

(iii) that Format were adopted.

(4) For the purposes of sub-paragraph (2), the aggregate of the amounts which at the end of the financial year were owed to trade creditors shall be taken to be the amounts which would be shown under the heading corresponding to liability item E.4 (trade creditors) in Format 1 of the balance sheet formats set out in Part 1 of Schedule 1 to the Large and Medium–sized Companies and Groups (Accounts and Reports) Regulations 2008 if the society’s accounts were prepared in accordance with that Schedule and that Format were adopted.

New activities

10

The directors' report shall describe any activities in which the society or any of its subsidiary undertakings has engaged during the financial year of a different nature from the activities in which it has previously engaged.

SCHEDULE 9 — ANNUAL BUSINESS STATEMENT

Statutory percentages

1

(1) The annual business statement of a society shall state, as at the end of the financial year with which it deals, the following percentages—

(a) the difference between the values of X and Y as at the balance sheet date, expressed as a percentage of X, where X and Y are calculated for the purposes of section 6(1) of the Act[^f00024] and subject to sub-paragraph (3);

(b) the limit for the percentage described in sub-paragraph (a) stated in section 6(1) of the Act;

(c) the difference between the values of X and Y as at the balance sheet date, expressed as a percentage of X, where X and Y are calculated for the purposes of section 7(1) of the Act[^f00025]; and

(d) the limit for the percentage described in sub-paragraph (c) stated in section 7(1) of the Act.

(2) The annual business statement shall include an explanation of the basis of the calculation specified in sub-paragraph (1) and of what is represented by each of the percentages and limits so specified.

(3) For the purpose of calculating the percentage required to be stated by sub-paragraph (1)(a) for a society whose annual accounts are Building Societies Act accounts—

(a) the liquid assets of the society and any subsidiary undertakings referred to in section 6(2)(a) of the Act are those included in the balance sheet under Asset item A; and

(b) the fixed assets of the society and any subsidiary undertakings referred to in section 6(2)(b) of the Act are those included in the balance sheet under Asset items D and E,

in Part I, or in the case of a group accounts society, Part II of Schedule 2.

(4) For the purpose of calculating the percentage required to be stated by sub-paragraph (1)(a) for a society whose annual accounts are IAS accounts, the liquid assets and fixed assets of the society and any subsidiary undertakings referred to in paragraphs (a) and (b) of section 6(2) of the Act are those included in the balance sheet.

Other percentages

2

(1) Subject to the following provisions of this paragraph, the annual business statement of a society whose annual accounts are Building Societies Act accounts shall state the following particulars in respect of the society both in relation to the financial year with which it deals and in relation to the previous financial year—

(a) as a percentage of the total of Liability items A to D in Part I or II of Schedule 2 as at the balance sheet date—

(i) the gross capital as at that date;

(ii) the free capital as at that date; and

(iii) liquid assets as of that date;

(b) the profit or loss after taxation as a percentage of the mean total assets; and

(1A) Subject to the following provisions of this paragraph, the annual business statement of a society whose annual accounts are IAS accounts shall state the following particulars in respect of the society both in relation to the financial year with which it deals and in relation to the previous financial year—

(a) as a percentage of the total of the liability items listed in sub-paragraph (1B) as at the balance sheet date—

(i) the gross capital as at that date;

(ii) the free capital as at that date; and

(iii) liquid assets as of that date;

(b) the profit or loss after taxation as a percentage of the mean total assets; and

(1B) the liability items are shares, amounts owed to credit institutions, amounts owed to other customers, and debt securities in issue.

(2) Where the society is a group accounts society, the particulars required to be stated by sub-paragraph (1) or (1A) in respect of the society shall be stated in respect of the society and its subsidiary undertakings, but this sub-paragraph shall not be taken to prohibit the stating in addition by a society of those particulars in respect of the society alone.

(3) Any matter required by sub-paragraph (1) to be stated as a particular in, or to be used as a factor in calculating a particular required by this paragraph to be stated in, the annual business statement and which relates to a previous financial year is required to be so stated or used for the purpose of assisting the assessment of the corresponding particular for the financial year with which the annual business statement deals and accordingly shall, where it can be derived from an amount in annual accounts adjusted in accordance with regulation 3(7)(b), be derived from that amount as so adjusted.

(4) The annual business statement shall include an explanation of what is represented by each of the particulars referred to in sub-paragraph (1) or (1A) and, where sub-paragraph (2) applies, a statement of the basis on which particulars are stated by virtue of that sub-paragraph.

(5) Subject to sub-paragraph (3), for the purposes of sub-paragraph (1) and this sub-paragraph—

(a) “management expenses” means the total of items 9 and 10 in Part I or II of Schedule 1;

(b) “mean total assets” means, in respect of a financial year, the average amount of total assets as would have been included in the balance sheet throughout that year under Asset item H in Part I or II of Schedule 2, calculated on a reasonable basis;

(c) “the profit or loss after taxation” shall be taken from item 25 in Part I or, as the case may be, item 28 in Part II of Schedule 1; and

(d) “total assets” shall be taken from Asset item H in Part I or II of Schedule 2.

(5A) For the purposes of sub-paragraph (1A)—

(a) “management expenses” means the total of the administrative expenses, depreciation and amortisation as shown in the annual accounts;

(b) “mean total assets” means, in respect of a financial year, the average amount of total assets as would have been included in the balance sheet throughout that year, calculated on a reasonable basis;

(d) “liquid assets” means—

(i) cash and cash equivalents;

(ii) treasury bills and similar securities;

(iii) loans and advances to credit institutions; and

(iv) debt securities and other fixed income securities.

(6) With regard to sub-paragraphs (5)(b) and (5A)(b) the basis of calculation used shall be stated in the annual business statement.

(7) In sub-paragraphs (5)(b) and (5A)(b) “reasonable” shall be interpreted in accordance with section 74(5) of the Act.

Information relating to directors and other officers

3

(1) The annual business statement of a society shall state—

(a) in relation to each person who was, at the end of the financial year with which it deals, a director of the society—

(i) his name;

(ii) his home address or an address, other than that of the society, at which documents may be served on him;

(iii) his business occupation;

(iv) the bodies (other than the society) of which he is a director, if any;

(v) his date of birth; and

(vi) his date of appointment as director; and

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The annual business statement of a society shall state particulars of any arrangement entered into during the financial year with which it deals whereby—

(a) a director of the society or a person connected with him acquired, or arranged to acquire, any non-cash asset from a relevant body, or

(b) a relevant body acquired, or arranged to acquire, any non-cash asset from a director of the society or a person connected with him,

and for the purposes of this sub-paragraph “non-cash asset” and “connected with” shall be construed in accordance with Part VII (Management of Societies) of the Act, and “relevant body” means the society or any subsidiary undertaking of the society.

4

(1) The annual business statement of a society shall state, in relation to each person who was, at the end of the financial year with which it deals, a director or the chief executive of the society, particulars of his service contract (if any) with the society including in particular—

(a) the date on which the contract was entered into;

(b) whether the contract is for a fixed term and, if so, what the term is and whether the contract is automatically renewable in any circumstances (specifying them); and

(c) whether the contract provides for termination by notice (otherwise than for breach of its terms) and, if so, what period of notice must be given by each of the parties.

(2) The annual business statement of a society shall state, in relation to each person who was, at the end of the financial year with which it deals, a director ... of the society, whether he or any member of his immediate family was at the end of that year entitled to any right to subscribe for shares in, or debentures of, any connected undertaking of the society and whether any such right was granted to, or exercised by, him or a member of his immediate family during that year.

(3) If any right of the kind mentioned in sub-paragraph (2) granted to a director ... of the society or a member of his immediate family was outstanding at the end of that year, or was granted during that year but was not outstanding at the end of it, there shall be stated in respect of each such right—

(a) the name of the body in respect of which the right was granted;

(b) the date on which the right was granted;

(d) the consideration for the grant (or, if there is no consideration, that fact); and

(e) a description of the shares or debentures involved and the number or amount of them, and the prices to be paid for them (or the consideration, if otherwise than in money).

(4) If any right of the kind mentioned in sub-paragraph (2) was exercised by a director ... of the society or a member of his immediate family during that year, there shall be stated in respect of each such right—

(a) the name of the body in respect of which the right was exercised (identifying the right, if more than one was exercisable in respect of that body);

(b) a description of the shares or debentures involved and the number or amount of them; and

(c) if they were registered in his name, that fact, and, if not, the name or names of the person or persons in whose name or names they were registered, together (if they were registered in the names of two persons or more) with the number or amount registered in the name of each of them.

(5) In sub-paragraphs (2), (3) and (4) a director’s ... “immediate family” means his spouse or civil partner and infant children but does not include a person who is himself a director ... of the society; and for this purpose “children” includes step-children, and “infant” means, in relation to Scotland, under the age of 18 years.

SCHEDULE 10 — SUMMARY FINANCIAL STATEMENT

PART I — FORMAT OF SUMMARY FINANCIAL STATEMENT (Building Societies Act accounts society)

SECTION A — PRESCRIBED FORM OF STATEMENT FOR THE PURPOSES OF SECTION 76(4) OF THE ACT

SECTION B — SUMMARY DIRECTORS' REPORT

SECTION C — FORMAT OF SUMMARY STATEMENT

SECTION D — FORMAT OF SUMMARY OF KEY FINANCIAL RATIOS

PART II — PROVISIONS APPLICABLE TO PART I

1

The Summary Directors' Report (which is required by section B of Part I and Part IA) may be in any format but shall include—

(a) in the case of a single accounts society—

(i) a summary review of the business of the society during, and a commentary on its financial position at the end of, the relevant year;

(ii) a summary review of the events during the relevant year considered by the directors of the society to have an important effect on the society;

(iii) a summary review of any events which have occurred since the end of the relevant year and which are considered by the directors of the society to have an important effect on the society; and

(iv) a summary indication of the opinion of the directors of the society as to the developments considered by them to be likely to happen in the business of the society; and

(b) in the case of a group accounts society—

(i) a summary review of the business of the society and its subsidiary undertakings during, and a commentary on their financial position at the end of, the relevant year;

(ii) a summary review of the events during the relevant year considered by the directors of the society to have an important effect on the society and its subsidiary undertakings;

(iii) a summary review of any events which have occurred since the end of the relevant year and which are considered by the directors of the society to have an important effect on the society and its subsidiary undertakings; and

(iv) a summary indication of the opinion of the directors of the society as to the developments considered by them to be likely to happen in the business of the society and its subsidiary undertakings.

2

In sections C and D of Part I and Part IA “year” means “financial year”, “this year” means the relevant year, and “last year” means the financial year preceding the relevant year.

3

Any amount or percentage required to be included in section C or D of Part I or Part IA in the column headed “LAST YEAR” is required to be included for the purposes of assisting the assessment of the corresponding amount or percentage in the column headed “THIS YEAR” and accordingly shall, where it is derived from an amount in annual accounts adjusted in accordance with regulation 3(7)(b), be derived from that amount as so adjusted.

4

Sections C and D of Part I or Part IA shall all be completed—

(a) in relation to a single accounts society, in relation to the society, and

(b) in relation to a group accounts society, in relation to the society and its subsidiary undertakings.

5

Subject to paragraph 3, in section C of Part I—

(a) item 1 shall be derived from item 3 in Part I, or, as the case may be, Part II, of Schedule 1,

(b) item 2 shall be derived from items 4 to 8 and 11 in Part I, or, as the case may be, Part II, of Schedule 1,

(d) item 4 shall be derived from items 12 and 13 in Part I, or, as the case may be, Part II, of Schedule 1,

(e) item 5 shall be derived from item 16 in Part I, or, as the case may be, Part II, of Schedule 1,

(f) item 6 shall be derived from items 17 and 24 in Part I, or, as the case may be, items 17 and 27 in Part II, of Schedule 1,

(g) item 7 shall be derived from item 19 in Part II of Schedule 1,

(h) item 8 shall be derived from item 23 in Part I, or, as the case may be, items 25 and 26 in Part II of Schedule 1,

(i) item 9 shall be derived from item 25 in Part I, or, as the case may be, item 28 in Part II, of Schedule 1,

(j) item 10 shall be derived from Asset item A in Part I, or, as the case may be, Part II, of Schedule 2,

(k) item 11 shall be derived from Asset item B.1 and B.2(a) in Part I, or, as the case may be, Part II, of Schedule 2,

(l) item 12 shall be derived from Asset item B.2(b) in Part I, or, as the case may be, Part II of Scbedule 2,

(m) item 13 shall be derived from Asset items C to G in Part I, or, as the case may be, in Part II, of Schedule 2,

(n) item 15 shall be derived from Liability item A in Part I, or, as the case may be, Part II, of Schedule 2,

(o) item 16 shall be derived from Liability items B to D in Part I, or, as the case may be, Part II, of Schedule 2,

(p) item 17 shall be derived from Liability items E to G in Part I, or, as the case may be, Part II, of Schedule 2,

(q) item 18 shall be derived from Liability item H in Part I, or, as the case may be, Part II, of Schedule 2,

(r) item 19 shall be derived from Liability item I in Part I, or, as the case may be, Part II, of Schedule 2,

(s) item 20 shall be derived from Liability item K in Part I, or, as the case may be, Part II, of Schedule 2, and

(t) item 21 shall be derived from Liability item J in Part I, or, as the case may be, items J and L in Part II, of Schedule 2.

6

A heading for an item contained in section C of Part I or Part IA shall not be included if there is no amount to be shown for that item in respect of the relevant year or the previous financial year.

7

Subject to paragraph 3, in section D of Part I—

(a) item 1 shall be derived from the particulars required to be stated in the annual business statement by paragraph 2(1)(a)(i) of Schedule 9,

(b) item 2 shall be derived from the particulars required to be stated in the annual business statement by paragraph 2(1)(a)(iii) of Schedule 9,

(c) item 3 shall be derived from the particulars required to be stated in the annual business statement by paragraph 2(1)(b) of Schedule 9, and

(d) item 4 shall be derived from the particulars required to be stated in the annual business statement by paragraph 2(1)(c) of Schedule 9.

8

There shall be disclosed as a note to the Summary of Key Financial Ratios, the format of which is set out in section D of Part I, the items in section C of Part I which together constitute gross capital for the purposes of item 1 of section D of that Part.

9

There shall be included as a note to the Summary of Key Financial Ratios, the format of which is set out in section D of Part I, an explanation of what each of items 1, 2, 3 and 4 in that section measures and its significance.

10

Where there are extraordinary items in the income and expenditure account for the relevant year or the previous financial year, there shall be disclosed in a note to the Summary Statement (the format of which is set out in section C of Part I) the nature of the extraordinary items in the income and expenditure account for that year.

11

In this Schedule “relevant year”, in relation to a summary financial statement of a society, means the financial year of the society with which the summary financial statement deals.

SCHEDULE 11 — INTERPRETATION OF SCHEDULES

1

The following paragraphs apply for the purposes of the interpretation of the Schedules to these Regulations.

Balance sheet date

2

“Balance sheet date”, in relation to a balance sheet, means the date as at which the balance sheet was prepared.

Capital

3

(1) “Gross capital” means reserves as shown in the balance sheet plus any subordinated liabilities, subscribed capital, revaluation reserves and minority interests, where applicable, as shown in the balance sheet.

(2) “Free capital” means the aggregate of gross capital and general provisions for bad and doubtful debts less intangible fixed assets and tangible fixed assets, as shown in the balance sheet.

Leases

4

In respect of leases—

“long lease” means a lease in the case of which the portion of the term for which it was granted remaining unexpired at the end of the financial year is not less than 50 years;

“short lease” means a lease which is not a long lease; and

“lease” includes an agreement for a lease.

Listed securities

5

“Listed security” means a security listed on a stock exchange in an EEA State or on any stock exchange not in an EEA State which meets the criteria established by the Financial Conduct Authority in exercise of its functions under Part 6 (official listing etc.) of the Financial Services and Markets Act 2000 and is included in a list maintained by the Financial Conduct Authority and the expression “unlisted security”shall be construed accordingly.

Loans

6

A loan is treated as falling due for repayment, and an instalment of a loan is treated as falling due for payment, on the earliest date on which the lender could require repayment or (as the case may be) payment, if he exercised all options and rights available to him.

Materiality

7

No provision of these Regulations requiring the inclusion of amounts in a particular account, or in notes to the annual accounts (other than paragraphs 4 to 11, 13, 14(3)(b) and 35 of Schedule 5), shall be taken to prohibit the disregarding of an amount which, in the particular context of that provision, is immaterial.

Participating interest

8

“Participating interest” has the meaning given to that phrase in paragraph 11 of Schedule 10 to the Large and Medium–sized Companies and Groups (Accounts and Reports) Regulations 2008.

Provisions

9

(1) References to provisions for depreciation or diminution in value of assets are to be taken as references to any amount written off by way of providing for depreciation or diminution in value of assets.

(2) Any reference in an income and expenditure account to the depreciation of, or amounts written off, assets of any description is to be taken as a reference to any provision for depreciation or diminution in value of assets of that description.

(3) References to provisions for liabilities are to be taken as a reference to any amount retained as reasonably necessary for the purpose of providing for any liability the nature of which is clearly defined and which is either likely to be incurred, or certain to be incurred but uncertain as to amount or as to the date on which it will arise.

Scots land tenure

10

In the application of these Regulations in Scotland, “land of freehold tenure” means land in respect of which the society (or, as the case may be, a subsidiary undertaking of the society) is the proprietor of the dominium utile or, in the case of land not held on feudal tenure, is the owner, and “land of leasehold tenure” means land of which the society (or, as the case may be, a subsidiary undertaking of the society) is the tenant under a lease.

Staff costs

11

(1) “Social security costs” means any contribution by the society to any state social security or pension scheme, fund or arrangement.

(2) “Pension costs” includes any costs incurred by the society in respect of any pension scheme established for the purpose of providing pensions for persons currently or formerly employed by the society, any sums set aside for the future payment of pensions directly by the society to current or former employees and any pensions paid directly to such persons without having been first set aside.

(3) Any amount stated in respect of the item “social security costs” or in respect of the item “wages and salaries” in the society’s income and expenditure account shall be determined by reference to payments made or costs incurred in respect of all persons employed by the society during the financial year.

Amounts repayable

12

Only those amounts which can at any time be withdrawn without notice or for which a maturity or period of notice of twenty-four hours or one working day has been agreed shall be regarded as repayable on demand.

Other defintions

13

In the Schedules to these Regulations—

“credit institution” means an undertaking carrying on (whether in the United Kingdom or elsewhere) a regulated activity (within the meaning of the Financial Services and Markets Act 2000) of accepting deposits, and authorised by the competent authorities of the United Kingdom, an EEA State or any other State (the reference to accepting deposits being read with section 22 of that Act, any relevant order under that section and Schedule 2 to that Act);

“EEA State” has the meaning given by Schedule 1 to the Interpretation Act 1978;

“fair value reserve” has the meaning given by paragraph 31E of Schedule 7;

“fixed assets” means assets of a society which are intended for use on a continuing basis in the society’s activities, and “current assets” means assets not intended for such use;

“liquid assets” (except in paragraph 2(1A) of Schedule 9) means an asset of a society which is shown under Asset item A in Part I or II of Schedule 2;

“sale and repurchase transaction” means a transaction which involves the transfer by a credit institution or a customer (the “transferor”) to another credit institution or customer (the “transferee”) of assets subject to an agreement that the same assets will subsequently be transferred back to the transferor at a specified price on a date specified or to be specified by the transferor; but forward exchange transactions, options, transactions involving the issue of fixed income securities with a commitment to repurchase all or part of the issue before maturity or any similar transactions shall not be regarded as sale and repurchase transactions; and

“third party” means a person who is neither the society nor a connected undertaking.

Signed

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

G. S. Johnson — Secretary to the Commission — 2nd March 1998.

We consent to this Order.

Jim Dowd — Bob Ainsworth — Two of the Lords Commissioners of Her Majesty’s Treasury — 3rd March 1998

Explanatory note

(This note is not part of the Regulations)

These Regulations revoke and replace with effect from 27th March 1998 the Building Societies (Accounts and Related Provisions) Regulations 1992. They prescribe the format and content of the annual accounts which must be prepared in respect of building societies or of building societies and their subsidiary undertakings as a group, as applicable. The previous Regulations are largely re-enacted but changes are made to take account of amendments to the provisions of the Building Societies Act 1986 governing societies' activities made by the Building Societies Act 1997.

The principal changes made by the Regulations in this respect are—

(i) replacement generally of references to associated bodies of societies by references to connected undertakings in a building society’s corporate group to reflect the removal by the 1997 Act of the restrictions in the 1986 Act on the ability of building societies to have interests in other types of bodies;

(ii) replacement of references in regulation 6 and Schedule 6 to investments in associated bodies of societies by references to holdings in undertakings to take account of the range of interests which building societies may now have in other types of bodies;

(iii) amendments to the format of a society’s income and expenditure account and balance sheet set out in Schedules 1 and 2 to reflect the relaxation of constraints on societies' activities and to clarify and simplify the assets and liabilities headings, and consequent amendments to the format of the statement of the source and application of funds set out in Schedule 3;

(iv) replacement of the statutory ratios and percentages to be stated in the annual business statement as set out in Schedule 9 by statutory percentages based on the lending and funding limits in sections 6 and 7 of the Building Societies Act 1986 substituted by the 1997 Act, amendment of the profit-based percentage by removing the requirement to show profit as a percentage of mean reserves, amendment of the liquid assets percentage to show such assets as a percentage of shares and borrowings and the introduction of a new percentage to show management expenses as a percentage of total assets.

The Regulations also make more stringent the requirements for the disclosure of directors' remuneration and other benefits in the notes to the annual accounts as set out in Schedule 5. The remuneration, bonuses, other non-cash benefits, share option gains, incentives, pension contributions and any annual increase in accrued pension or lump sum pension benefits payable for each director by name are to be shown, together with any amounts received as compensation for loss of office. These requirements will implement for the directors of building societies the key provisions of the Greenbury Code of Best Practice on Directors' Remuneration set out in Directors' remuneration: Report of a study group chaired by Sir Richard Greenbury (17 July 1995).

The Regulations also make miscellaneous minor changes to the required form and content of building societies' accounts to take account of amendments to the corresponding requirements for companies' accounts under the Companies Act 1985 and to align building societies' accounts more closely with banks' accounts. In particular, the maturity analysis required in Schedule 5 has been reduced to be consistent with that used for banks and the directors' report as set out in Schedule 8 must state the policy and give information on payment of suppliers.

The matters for inclusion in the directors' report are extended to cover particulars of any important events for the society and any connected undertakings during the year and a description of any new types of activities which a society or any subsidiary undertakings has engaged in during the year.

A regulatory appraisal has been produced setting out the objectives, costs and benefits of this instrument and is available from the Secretary, Building Societies Commission, 30—34 Kingsway, London WC2B 6ES.

Footnotes

[^f00001]: 1986 c. 53; sections 73, 74, 75 and 76 were amended by section 43 of, and Schedule 7 to, the Building Societies Act 1997 (c. 32).

[^f00006]: S.I. 1992/359.

[^f00007]: S.I. 1997/2668 (C.99).

[^f00008]: S.I. 1994/2459.

[^f00009]: S.I. 1995/3065.

[^f00010]: Section 9A was inserted by section 10 of the Building Societies Act 1997.

[^f00011]: Section 6 was substituted by section 4 of the Building Societies Act 1997 (c. 32).

[^f00012]: Section 6B was inserted by section 6 of the Building Societies Act 1997.

[^f00022]: 1995 c. 50.

[^f00024]: Section 6 was substituted by section 4 of the Building Societies Act 1997 (c. 32).

[^f00025]: Section 7 was substituted by section 8 of the Building Societies Act 1997.

Editorial notes

[^key-6dca88932d6f23d3134a99aeedcd704c]: Reg. 1 in force at 27.3.1998, see reg. 1

[^key-0e228ecc36ecc586f59d226eb98a3399]: Reg. 2 in force at 27.3.1998, see reg. 1

[^key-c4f24b84dcc0445ae99f272201926b2e]: Reg. 3 in force at 27.3.1998, see reg. 1

[^key-b53fa3e147176efc7e327553b23bd80d]: Reg. 4 in force at 27.3.1998, see reg. 1

[^key-f97dad1be3b1ff79add34463b11b8d4a]: Reg. 5 in force at 27.3.1998, see reg. 1

[^key-c32d69964e378e3338f688ec6384d435]: Reg. 7 in force at 27.3.1998, see reg. 1

[^key-6c031dea8ef9c92c083e4d419d85eb98]: Reg. 8 in force at 27.3.1998, see reg. 1

[^key-feddb28d2f2af1f8e260cd7806e4ea01]: Reg. 9 in force at 27.3.1998, see reg. 1

[^key-78f357547eb912f187017f48d1a95333]: Reg. 10 in force at 27.3.1998, see reg. 1

[^key-12457dd541310d01479133da877cf8d6]: Reg. 11 in force at 27.3.1998, see reg. 1

[^key-685e2e3e04d4bc20a0029794a7d54cdf]: Reg. 12 in force at 27.3.1998, see reg. 1

[^key-3a739cd4fdd3c1bd65ac7a234e706932]: Reg. 13 in force at 27.3.1998, see reg. 1

[^key-2636de3b20b99a75d84f5b7f1ce7bba1]: Sch. 1 Pt. I para. 1 in force at 27.3.1998, see reg. 1

[^key-22a7a95ad38381ced231c19c7dc09b01]: Sch. 1 Pt. I para. 2 in force at 27.3.1998, see reg. 1

[^key-10ca474c58d7390e7c199429b49ac623]: Sch. 1 Pt. I para. 3 in force at 27.3.1998, see reg. 1

[^key-2d0c17fd58d891494e7733af4f4a6659]: Sch. 1 Pt. I para. 4 in force at 27.3.1998, see reg. 1

[^key-9ea6cbe8b7519696029c7a0188f15786]: Sch. 1 Pt. I para. 5 in force at 27.3.1998, see reg. 1

[^key-f20df2de412528c48b38d5cd0f17a806]: Sch. 1 Pt. I para. 6 in force at 27.3.1998, see reg. 1

[^key-d62e997a4aabe3e05a73fc0a8bf6f4f1]: Sch. 1 Pt. I para. 7 in force at 27.3.1998, see reg. 1

[^key-652dc5f8ad5175068d7057be939f3e16]: Sch. 1 Pt. I para. 8 in force at 27.3.1998, see reg. 1

[^key-313bde6f43a0ab9971850e1bbf7e59ea]: Sch. 1 Pt. I para. 9 in force at 27.3.1998, see reg. 1

[^key-8040b6810783e1b455e9f04e7f701d89]: Sch. 1 Pt. I para. 10 in force at 27.3.1998, see reg. 1

[^key-a769fef3de72c131c11544a6ad252455]: Sch. 1 Pt. I para. 11 in force at 27.3.1998, see reg. 1

[^key-e66a1d33264ec14d8c878f3bfde256d1]: Sch. 1 Pt. I para. 12 in force at 27.3.1998, see reg. 1

[^key-33d55af97f1ae9c4fde7cec87037201f]: Sch. 1 Pt. I para. 13 in force at 27.3.1998, see reg. 1

[^key-fbc76e58e0d535ca3a06ddfbcb2ac700]: Sch. 1 Pt. I para. 14 in force at 27.3.1998, see reg. 1

[^key-0658c493cc413d0053b339fcc1b66aba]: Sch. 1 Pt. I para. 15 in force at 27.3.1998, see reg. 1

[^key-966ea365716dc2aee942a75365c07d5f]: Sch. 1 Pt. I para. 16 in force at 27.3.1998, see reg. 1

[^key-68d8f02ff6e74f21bda8b5ac30edb42e]: Sch. 1 Pt. I para. 17 in force at 27.3.1998, see reg. 1

[^key-e830e36b94c4cf040470df55a26e876e]: Sch. 1 Pt. I para. 18 in force at 27.3.1998, see reg. 1

[^key-c9495bae2eef4e238eba6b41a3cd9113]: Sch. 1 Pt. I para. 19 in force at 27.3.1998, see reg. 1

[^key-05e99dd43a69e0d4408a4730fbfafbc5]: Sch. 1 Pt. I para. 20 in force at 27.3.1998, see reg. 1

[^key-0e9215f28b97315b8c4bc4ed79efe3fe]: Sch. 1 Pt. I para. 21 in force at 27.3.1998, see reg. 1

[^key-0daf50b70b3f44cf7295a61cdff5fed3]: Sch. 1 Pt. I para. 22 in force at 27.3.1998, see reg. 1

[^key-bcbd6dae4161f70783472be78493540f]: Sch. 1 Pt. I para. 23 in force at 27.3.1998, see reg. 1

[^key-4ce6c84acf3cf4ae55e40eadedf245ac]: Sch. 1 Pt. I para. 24 in force at 27.3.1998, see reg. 1

[^key-ec0d5a139a3c836c700b0edffe61766b]: Sch. 1 Pt. I para. 25 in force at 27.3.1998, see reg. 1

[^key-84734382ce305fa966e7fc41b155f601]: Sch. 1 Pt. II para. 1 in force at 27.3.1998, see reg. 1

[^key-32dc76aa3afb7df3a8924655d290c254]: Sch. 1 Pt. II para. 2 in force at 27.3.1998, see reg. 1

[^key-d98d5f1c2c763f6e6219ea1616e5458f]: Sch. 1 Pt. II para. 3 in force at 27.3.1998, see reg. 1

[^key-85f2f3564223b1505a1039b3643d0522]: Sch. 1 Pt. II para. 4 in force at 27.3.1998, see reg. 1

[^key-6847e540d7bfa7c686c4ada3ab975807]: Sch. 1 Pt. II para. 5 in force at 27.3.1998, see reg. 1

[^key-790fce4818558173a7fee97fc850f8ec]: Sch. 1 Pt. II para. 6 in force at 27.3.1998, see reg. 1

[^key-88d6cc099503ba72ab5cc8a4ebf1c3d4]: Sch. 1 Pt. II para. 7 in force at 27.3.1998, see reg. 1

[^key-dd6e909cf9e39db5dcd08dff18a64d5e]: Sch. 1 Pt. II para. 8 in force at 27.3.1998, see reg. 1

[^key-5b101003fe81c79ea3eeed5ef9e0b13c]: Sch. 1 Pt. II para. 9 in force at 27.3.1998, see reg. 1

[^key-2c7dcac172a1f7bf9679c2bce56e8684]: Sch. 1 Pt. II para. 10 in force at 27.3.1998, see reg. 1

[^key-68d5c2a06385444b9258000de71d323b]: Sch. 1 Pt. II para. 11 in force at 27.3.1998, see reg. 1

[^key-31ab547bb8e2f9c86c0b4c87dfe38662]: Sch. 1 Pt. II para. 12 in force at 27.3.1998, see reg. 1

[^key-73a07902926cf586fb80f921d9badcb6]: Sch. 1 Pt. II para. 13 in force at 27.3.1998, see reg. 1

[^key-b4eb30a8e643f0be365ce56a7cd2614e]: Sch. 1 Pt. II para. 14 in force at 27.3.1998, see reg. 1

[^key-76d88a50a5df956dc4e5a01b2ce859d7]: Sch. 1 Pt. II para. 15 in force at 27.3.1998, see reg. 1

[^key-db001daee6b363ec211cd4c696832a5d]: Sch. 1 Pt. II para. 16 in force at 27.3.1998, see reg. 1

[^key-869fc5d54cea5e26a226e8a5c9c5d441]: Sch. 1 Pt. II para. 17 in force at 27.3.1998, see reg. 1

[^key-0ca1b1decaa8542267d1c7368944d190]: Sch. 1 Pt. II para. 18 in force at 27.3.1998, see reg. 1

[^key-71ba1f3101768dd92b9e7b37e3ae0332]: Sch. 1 Pt. II para. 19 in force at 27.3.1998, see reg. 1

[^key-42cbbaee47065d0fcda6fa2c6063418f]: Sch. 1 Pt. II para. 20 in force at 27.3.1998, see reg. 1

[^key-c4cd19bd6652a030e9c44cd8c05c0dac]: Sch. 1 Pt. II para. 21 in force at 27.3.1998, see reg. 1

[^key-c85aebc5493f866d23508bc1e9345360]: Sch. 1 Pt. II para. 22 in force at 27.3.1998, see reg. 1

[^key-6c6afde0c6aefe0dffc558252d46c3fb]: Sch. 1 Pt. II para. 23 in force at 27.3.1998, see reg. 1

[^key-f77d6a03a66ddb40fb73533b3f2f4b38]: Sch. 1 Pt. II para. 24 in force at 27.3.1998, see reg. 1

[^key-04e6ed6156415bb685295d2fc511f8cf]: Sch. 1 Pt. II para. 25 in force at 27.3.1998, see reg. 1

[^key-b054e397aa0c2514d710fcebc80cbef1]: Sch. 1 para. 26 in force at 27.3.1998, see reg. 1

[^key-6defab21f795b91b03e486840d38b00c]: Sch. 1 para. 27 in force at 27.3.1998, see reg. 1

[^key-dbadedd41bda6dcebfeb8300e3fce228]: Sch. 1 para. 28 in force at 27.3.1998, see reg. 1

[^key-c839cf56ea0fe02ca33d8c5f628579fa]: Sch. 1 Pt. III para. 1 in force at 27.3.1998, see reg. 1

[^key-f6981785e50cbf9f22f6545df64426a3]: Sch. 1 Pt. III para. 2 in force at 27.3.1998, see reg. 1

[^key-14ec9af62e4a1f854417ea0e3c06a76f]: Sch. 1 Pt. III para. 3 in force at 27.3.1998, see reg. 1

[^key-1d180db641069a6984570e585aea2d1b]: Sch. 1 Pt. III para. 4 in force at 27.3.1998, see reg. 1

[^key-d2c77b180ec7b556269e3791f2c6da8e]: Sch. 1 Pt. III para. 5 in force at 27.3.1998, see reg. 1

[^key-df2de06e6b7e30cfc1dd0b4d2172a52f]: Sch. 1 Pt. III para. 6 in force at 27.3.1998, see reg. 1

[^key-816b2ccbc7e28cff01401241afad5b14]: Sch. 1 Pt. III para. 7 in force at 27.3.1998, see reg. 1

[^key-90bf783e5199995449def7c4698e9d83]: Sch. 1 Pt. III para. 8 in force at 27.3.1998, see reg. 1

[^key-02f72ecd21735c55084fb814d06773bb]: Sch. 1 Pt. III para. 9 in force at 27.3.1998, see reg. 1

[^key-4fc3ac0b59eeb48dfc880546041f8415]: Sch. 1 Pt. III para. 10 in force at 27.3.1998, see reg. 1

[^key-5c92ca9b3cc491b08d51fc2d39dfc163]: Sch. 1 Pt. III para. 11 in force at 27.3.1998, see reg. 1

[^key-a03c09468404a3ea2f7b1767757e2ba8]: Sch. 1 Pt. III para. 12 in force at 27.3.1998, see reg. 1

[^key-2db6eb7d78187cdadc1326af485214bd]: Sch. 1 Pt. III para. 13 in force at 27.3.1998, see reg. 1

[^key-7e51ac5219a112f0330423ae40e3588b]: Sch. 2 Pt. I in force at 27.3.1998, see reg. 1

[^key-f523366ad664dbc9b8e7d49614fdb8e8]: Sch. 2 Pt. II in force at 27.3.1998, see reg. 1

[^key-58a93d1b279930dad7c99d1de9443244]: Sch. 2 Pt. III para. 1 in force at 27.3.1998, see reg. 1

[^key-064692af90fe600c4f31f06f86d157f2]: Sch. 2 Pt. III para. 2 in force at 27.3.1998, see reg. 1

[^key-0d1619063a75e749af40bcdfafe7d24e]: Sch. 2 Pt. III para. 3 in force at 27.3.1998, see reg. 1

[^key-1f45e64217b8191d2db11f542a634565]: Sch. 2 Pt. III para. 4 in force at 27.3.1998, see reg. 1

[^key-3088759ea48f30a951d518e525ddd634]: Sch. 2 Pt. III para. 5 in force at 27.3.1998, see reg. 1

[^key-a298b2fe540adf99153fa0cd445dd8b6]: Sch. 2 Pt. III para. 6 in force at 27.3.1998, see reg. 1

[^key-4b64fdee6b2fa26caa51620c88d45cf5]: Sch. 2 Pt. III para. 7 in force at 27.3.1998, see reg. 1

[^key-3fccd8f129883ff652b5328e824c3bc8]: Sch. 2 Pt. III para. 8 in force at 27.3.1998, see reg. 1

[^key-1f38becf77faac99ffc64efc4bcff96a]: Sch. 2 Pt. III para. 9 in force at 27.3.1998, see reg. 1

[^key-02ee97a33310c6fe9606bb52dd211cbd]: Sch. 2 Pt. III para. 10 in force at 27.3.1998, see reg. 1

[^key-8541ca4b8fb9741c82105cd82e14f6e3]: Sch. 2 Pt. III para. 11 in force at 27.3.1998, see reg. 1

[^key-bb313f27c15ecd8e55d340dca6d17f37]: Sch. 2 Pt. III para. 12 in force at 27.3.1998, see reg. 1

[^key-fd96456b24cb453d2013680fa53e627f]: Sch. 2 Pt. III para. 13 in force at 27.3.1998, see reg. 1

[^key-c786a06533ac6b78011e45ac91a0de1d]: Sch. 2 Pt. III para. 14 in force at 27.3.1998, see reg. 1

[^key-8af94d7d10fd89cb298742b648443eb3]: Sch. 2 Pt. III para. 15 in force at 27.3.1998, see reg. 1

[^key-8165cb8cf6bae393f698df8c61de2978]: Sch. 2 Pt. III para. 16 in force at 27.3.1998, see reg. 1

[^key-57f9a8e708ac063f2c517249d12d329d]: Sch. 2 Pt. III para. 17 in force at 27.3.1998, see reg. 1

[^key-4b6a602bc499fbf12cb3d76ab695f59c]: Sch. 2 Pt. III para. 18 in force at 27.3.1998, see reg. 1

[^key-f094fbb5845266aadf30f78690f846ca]: Sch. 4 para. 1 in force at 27.3.1998, see reg. 1

[^key-1732a4236f76a78ec794ef7b02940181]: Sch. 4 para. 2 in force at 27.3.1998, see reg. 1

[^key-7737d934d4ce844907670bc7746c7aa8]: Sch. 4 para. 3 in force at 27.3.1998, see reg. 1

[^key-a1f8c0256187189652c6396aaf18bc37]: Sch. 4 para. 4 in force at 27.3.1998, see reg. 1

[^key-314889f007404cdb56ce65c1d0aebee5]: Sch. 4 para. 5 in force at 27.3.1998, see reg. 1

[^key-0efae68a028fe3e6366ed18f20e89233]: Sch. 4 para. 6 in force at 27.3.1998, see reg. 1

[^key-d364f1bdd82bf3dd2ffe1266d0d7bccb]: Sch. 4 para. 7 in force at 27.3.1998, see reg. 1

[^key-93808a38fa8c77214ff05b13ca14032d]: Sch. 4 para. 8 in force at 27.3.1998, see reg. 1

[^key-548dde794a27533083b905266c5cc84a]: Sch. 4 para. 9 in force at 27.3.1998, see reg. 1

[^key-a139b9d85107c573cdf89b0d0b807cb0]: Sch. 4 para. 10 in force at 27.3.1998, see reg. 1

[^key-ddd364e7d04ce241c8e664a17ddf75d7]: Sch. 4 para. 11 in force at 27.3.1998, see reg. 1

[^key-5e7a2efb92e4ca22941aff31aa987c0f]: Sch. 4 para. 12 in force at 27.3.1998, see reg. 1

[^key-d00f5d37aec58887e449c8e3602990d4]: Sch. 4 para. 13 in force at 27.3.1998, see reg. 1

[^key-4a62f5d7a348d814563a160c4d714349]: Sch. 4 para. 14 in force at 27.3.1998, see reg. 1

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