Parliamentary.ai

Overview

This bill amends the Building Societies Act 1986, primarily to adjust how building societies calculate their funding limits and to allow for more flexible meeting procedures and document execution. It also aims to streamline the assimilation of company law into building society regulations.

Description

The bill makes several key changes:

• Funding Limit Adjustments: It modifies the definition of "disregarded funds" within the funding limit, specifically including funds from the Bank of England's liquidity insurance facility, certain debt instruments used to meet capital requirements, and funds from sale and repurchase agreements to comply with Prudential Regulation Authority (PRA) rules. The Treasury will define specifics via regulations.
• Electronic Meetings: It permits building societies to hold meetings electronically, allowing members to participate remotely. Security and identification protocols must be in place.
• Assimilation of Company Law: It extends the power to assimilate company law into building society regulations to include provisions on common seals and document execution.

Government Spending

The bill is not expected to significantly affect government spending. The changes relate to regulatory adjustments rather than direct government financial outlays. No specific figures were provided in the bill text.

Groups Affected

• Building Societies: The bill directly impacts building societies by altering their funding calculations, enabling electronic meetings, and potentially simplifying their administrative procedures. The changes could lead to increased efficiency and flexibility.
• Bank of England: The bill clarifies the role of the Bank of England's liquidity insurance facility in relation to building society funding.
• Prudential Regulation Authority (PRA): The bill's impact on the PRA is primarily in clarifying the interaction between their rules and building society funding practices.
• Building Society Members: Members may find it easier to participate in society meetings through electronic means.