Building Societies Act 1986
Act of the Parliament of the United Kingdom
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The Building Societies Act 1986 (c. 53) is an act of the 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.
Long titleAn Act to make fresh provision with respect to building societies and further provision with respect to conveyancing services.
Territorial extentUnited Kingdom
Royal assent25 July 1986
| Act of Parliament | |
.svg) | |
| 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 |
| Commencement | |
| Other legislation | |
| Amends | See § Repealed enactments |
| Repeals/revokes | See § Repealed enactments |
| Amended by |
|
Status: Amended | |
| Text of statute as originally enacted | |
| Revised text of statute as amended | |
| 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 stock market 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.
Provisions
Repealed enactments
Section 120(2) of the act repealed 22 enactments, listed in part I of schedule 19 to the act, revoked 1 instrument, listed in part II of schedule 19, and repealed and revoked 15 further enactments and instruments extending only to Northern Ireland, listed in part III of schedule 19 to the act.[3]
| Citation | Short title | Extent of repeal |
|---|---|---|
| 37 & 38 Vict. c. 42 | Building Societies Act 1874 | Section 1. |
| Section 4. | ||
| Section 32. | ||
| 57 & 58 Vict. c. 47 | Building Societies Act 1894 | Section 8(1). |
| Section 29. | ||
| 8 & 9 Eliz. 2. c. 64 | Building Societies Act 1960 | Section 72. |
| Section 73(1). | ||
| Section 77. | ||
| In Schedule 5, the entry relating to paragraph 4 of section 32 of the Building Societies Act 1874. | ||
| 9 & 10 Eliz. 2. c. 62 | Trustee Investments Act 1961 | In Part IV of Schedule 1, paragraphs 3A and 7. |
| 10 & 11 Eliz. 2. c. 37 | Building Societies Act 1962 | The whole act. |
| 1965 c. 32 | Administration of Estates (Small Payments) Act 1965 | In Schedules 1 and 3, the entries relating to the Building Societies Act 1962. |
| 1969 c. 46 | Family Law Reform Act 1969 | In Schedule 1, the entry relating to the Building Societies Act 1962. |
| 1970 c. 10 | Income and Corporation Taxes Act 1970 | In section 343(5), the words " union or ". |
| 1974 c. 39 | Consumer Credit Act 1974 | In section 16, in subsection (1) the words " or building society," and, in subsections (1)(e) and (3)(c), the word " or". |
| 1974 c. 46 | Friendly Societies Act 1974 | In Schedule 10, paragraph 9. |
| 1974 c. 47 | Solicitors Act 1974 | In section 32, in subsections (1) and (2), the word " banks' ". |
| 1974 c. 49 | Insurance Companies Act 1974 | In Schedule 1, the entries relating to the Building Societies Act 1962. |
| 1978 c. 27 | Home Purchase Assistance and Housing Corporation Guarantee Act 1978 | In section 3, subsections (2) to (4). |
| 1979 c. 37 | Banking Act 1979 | In paragraph 6 of Schedule 1, the words from " within " to the end. |
| In Schedule 6, paragraphs 6, 7, 16, and 17. | ||
| 1982 c. 50 | Insurance Companies Act 1982 | In Schedule 5, paragraphs 3 and 5. |
| 1984 c. 28 | County Courts Act 1984 | In Schedule 2, paragraph 26. |
| 1985 c. 9 | Companies Consolidation (Consequential Provisions) Act 1985 | In Schedule 2, the entries relating to the Building Societies Act 1962. |
| 1985 c. 58 | Trustee Savings Banks Act 1985 | In Schedule 1, paragraph 11(2)(a) and so much of that sub-paragraph as relates to the section 59 specified therein. |
| 1985 c. 61 | Administration of Justice Act 1985 | Section 66. |
| 1985 c. 68 | Housing Act 1985 | In section 458, the definition of "designated building society". |
| In section 459, the entry relating to "designated building society". | ||
| 1985 c. 69 | Housing Associations Act 1985 | Sections 63 to 66. |
| In section 72, the definitions of " building society ", " Chief Registrar " and " officer ". | ||
| In section 73, the entries relating to " building society ", " Chief Registrar " and " officer ". | ||
| 1985 c. 71 | Housing (Consequential Provisions) Act 1985 | In Schedule 2, paragraphs 5 and 6. |
| Citation | Title | Extent of revocation |
|---|---|---|
| SI 1981/1488 | Building Societies (Authorisation) Regulations 1981 | The whole Regulations. |
| Citation | Short title | Extent of repeal or revocation |
|---|---|---|
| 1967 c. 5 (N.I.) | Administration of Estates (Small Payments) Act (Northern Ireland) 1967 | In Schedule 1, the entry relating to the Building Societies Act 1874. |
| 1967 c. 31 (N.I.) | Building Societies Act (Northern Ireland) 1967 | The whole act. |
| 1969 c. 24 (N.I.) | Industrial and Provident Societies Act (Northern Ireland) 1969 | In section 101(1), the definition of " Building Societies Acts ". |
| 1969 c. 28 (N.I.) | Age of Majority Act (Northern Ireland) 1969 | In Schedule 1, the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| 1969 c. 31 (N.I.) | Age of Majority Act (Northern Ireland) 1969 | In Part I of Schedule 1, the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| 1970 c. 18 (N.I.) | Land Registration Act (Northern Ireland) 1970 | In Schedule 12 the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| 1978 c. 23 | Judicature (Northern Ireland) Act 1978 | In Schedule 5, in Part II the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| SI 1979/1573 (N.I. 12) | Statutory Rules (Northern Ireland) Order 1979 | In Schedule 4 the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| 1980 c. 25 | Insurance Companies Act 1980 | In Schedule 3, paragraph 3. |
| SI 1981/156 (N.I. 3) | Housing (Northern Ireland) Order 1981 | Article 156(6). |
| In Part II of Schedule 2, the entry relating to the Building Societies Act (Northern Ireland) 1967. | ||
| S.R. 1982/155 (N.I.) | Building Societies (Authorisation) Regulations (Northern Ireland) 1982 | The whole Regulations. |
| SI 1983/776 (N.I. 9) | Property (Discharge of Mortgage by Receipt) (Northern Ireland) Order 1983 | In Article 3(10), in the definition of " mortgage " the words " section 37 of the Building Societies Act (Northern Ireland) 1967 ". |
| SI 1983/1118 (N.I. 15) | Housing (Northern Ireland) Order 1983 | In Schedule 10, the entry relating to the Building Societies Act (Northern Ireland) 1967. |
| 1985 c. 71 | Housing (Consequential Provisions) Act 1985 | In Schedule 2, paragraphs 13, 51(2) and 51(5)(a). |
| SI 1986/1035 (N.I. 9) | Companies Consolidation (Consequential Provisions) (Northern Ireland) Order 1986 | In Part I of Schedule 1, the entry relating to the Building Societies Act (Northern Ireland) 1967. |
Amendments
Building Societies Act 1986 (Amendment) Act 2024
| Building Societies Act 1986 (Amendment) Act 2024[d] | |
|---|---|
| Act of Parliament | |
.svg) | |
| 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 |
| Introduced by | Julie Elliott MP (Commons) Lord Kennedy of Southwark (Lords) |
| Territorial extent | [e] |
| Dates | |
| Royal assent | 24 May 2024 |
| Commencement | 24 July 2024[f] |
| Other legislation | |
| Amends | Building Societies Act 1986 |
Status: Current legislation | |
| History of passage through Parliament | |
| Text of statute as originally enacted | |
| Revised text of statute as amended | |
| 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.[4][5] The Building Societies Act 1986 (Amendment) Act 2024 also amends the act to allow for meetings to be held through electronic means.[6][5]