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The Building Societies Act 1986 (c. 53) is an act of Parliament of the United Kingdom governing building societies (mutually-owned mortgage-lending institutions).[1] It removed certain restrictions on the range of services they could offer, so that they could compete with banks on a level basis: they could now make unsecured loans, offer cheque accounts, exchange currencies, provide stockbroking services, manage personal equity plans (tax-privileged investment accounts) and portfolios of unit trusts, arrange and advise on insurance, etc.[2] A new regulatory agency, the Building Societies Commission, was set up to supervise the activities of the societies, which were allowed to de-mutualise and become public limited companies subject to the agreement of their depositors.
| Act of Parliament | |
 | |
| Long title | An Act to make fresh provision with respect to building societies and further provision with respect to conveyancing services. |
|---|---|
| Citation | 1986 c. 53 |
| Territorial extent | United Kingdom |
| Dates | |
| Royal assent | 25 July 1986 |
| Other legislation | |
| Amended by |
|
Status: Amended | |
| Text of statute as originally enacted | |
| Text of the Building Societies Act 1986 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. | |
This act and the Big Bang stockmarket reform, also in the UK, also in 1986, were the two central planks of the move to financial deregulation in the United Kingdom in the 1980s. The Financial Services Act 1986 was also part of that movement.
Amendments
editBuilding Societies Act 1986 (Amendment) Act 2024
edit| Building Societies Act 1986 (Amendment) Act 2024 | |
|---|---|
| Act of Parliament | |
 | |
| Long title | An Act to make provision about the funding of building societies and the assimilation of the law relating to companies and the law relating to building societies. |
| Citation | 2024 c. 18 |
| Dates | |
| Royal assent | 24 May 2024 |
| Commencement | 24 July 2024 |
| Other legislation | |
| Amends | Building Societies Act 1986 |
Status: Current legislation | |
| Text of statute as originally enacted | |
| Text of the Building Societies Act 1986 (Amendment) Act 2024 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. | |
Under the Building Societies Act 1986, building societies would have had to raise at least 50% of funds, with some qualifications, from customer savings. The Building Societies Act 1986 (Amendment) Act 2024 (c. 18) would amend this to exclude some types of funding held for liquidity purposes or accessed in stress scenarios, from this calculation.[3][4] The Building Societies Act 1986 (Amendment) Act 2024 also amends the act to allow for meetings to be held through electronic means.[5][4]
See also
editReferences
edit- ^ Law, Jonathan, ed. (2018). A dictionary of finance and banking. ISBN 978-0-19-878974-1. OCLC 1031029712.
- ^ Boddy, Martin (April 1989). "Financial deregulation and UK housing finance: Government‐building society relations and the building societies act, 1986". Housing Studies. 4 (2): 92–104. doi:10.1080/02673038908720647. ISSN 0267-3037.
- ^ "Building Societies Act 1986 (Amendment) Act 2024: Section 1", legislation.gov.uk, The National Archives, 24 July 2024, 2024 c. 18 (s. 1), retrieved 25 August 2024
- ^ a b "Building Societies Act 1986 (Amendment) Bill 2023-24: Progress of the Bill". UK Parliament. UK Parliament. 2 April 2024. Retrieved 25 August 2024.
Under the Building Societies Act 1986, building societies must raise at least 50% of funds, with some qualifications, from customer savings. ... The Bill would exclude some types of funding held for liquidity purposes or accessed in stress scenarios, from this calculation.
- ^ "Building Societies Act 1986 (Amendment) Act 2024: Section 2", legislation.gov.uk, The National Archives, 24 July 2024, 2024 c. 18 (s. 2), retrieved 25 August 2024
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