01 September 2008
The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007- a consultation
The Treasury has today launched a consultation on “The Building Societies (Funding) and Mutual Societies (Transfers) Act. The Act received Royal Assent on 23 October 2007 and gives the Treasury the powers to:
- Amend building society law to enable building societies to borrow a greater proportion (up to 75% of their funding from the wholesale markets (section 1);
- Amend building society law so that, in the event of a building society insolvency, members’ shares would rank equally with liabilities to creditors (section 2); and
- Make it easier for a mutual society to transfer its business to the subsidiary of another mutual society (sections 3 and 4)]
The consultation is open from 1 September 2008 to 27 October 2008