Everything you wanted to know
Building Societies regulated by Building Societies Act of 1986 which has been amended various times. Further revised by Financial Services and Markets Act of 2000 and Building Societies Act of 1997.
The revised 1986 Act and 2000 Act regulates the following aspects of Building Societies:
Building societies received a new legal framework as the Building Societies Act of 1986 which replaced the building societies 1874 legislation. The 1986 Act for building societies has been revised numerous times, mainly by the Building Societies Act of 997 and the Financial services and markets Act of 2000.
Because the powers of building societies at the time of the 1986 Act was restricted, one of the most notable features of the Building Societies Act 1986 was the formation of the Building Societies Commission. The Building Societies Commission is a supervisory authority for all building societies). The building Societies Commission was given considerable power. Power was also given to the Teasury to make orders and regulations in regards to building societies.
Government reviewed in two stages the Building Societies Act 1986 on January 1994. Further changes to the Building Societies Act 1986. Changes to building societies' powers, introduced in the Deregulation and Contracting Out Act 1994 for building societies. Government released results of second stage of reviewing process for building societies in 1995 and shortly after in 1996 and 1997 the Building Societies Bill was released to Parliament. The 1997 Buildings Society Act.
The Building Societies Act of 1997's changes to the 1986 Act were as follows:
Building Societies were given until 30 April 1999 to adopt the new changes and rules.
More reforms and revisions beyond that of the 1997 Act for building Societies was announced by the government in 1997. This introduced the Financial Services Authority that was created to supervise building societies, banks, friendly societies, investment firms and insurance companies. This is the 2000 Act.
Building Societies Commission transferred a lot of its functions to the Financial Services Authority.
Different authorisation criteria replaced with single statutory process for building societies, banks etc.
Single financial ombudsman scheme for building societies formed.
Many additions of the 1986 Act for building Societies are repealed by the 2000 Act for Building Societies but parts of the 1986 Act for building societies remain in terms of governance and constitution.
Much of the 1986 Act for building societies are similar to legislation in the Companies Act of 1985, in which case certain aspects of the legislation of the Companies Act 2006 will be similar in legislation of building societies. In 2003 the Building Societies Act 1986 (Electronic Communications) Order was introduced to allow building societies to discuss with their members on a variety of constitutional matters such as:
2007 the Butterfill Act was introduced by MP Sir John Butterfill MP which allows building societies (and other mutual societies) to transfer its business to another mutual society. It also allows the Treasury to allow building societies to borrow up to 75% in case of a building society insolvency.