The Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1988

law://uk/uksi/1988/1393@2026-11-12

Contents

Article 1Title and commencement#

This Order may be cited as the Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1988 and shall come into force on 30th August 1988.

Article 2Amendment of previous Order#

The Building Societies (Designation of Qualifying Bodies) Order 1988 shall have effect subject to the amendments set out in the Schedule to this Order.

Schedule · Amendments to the building societies (designation of qualifying bodies) order 1988

(1)To Part I of the Schedule (bodies corporate, and descriptions of bodies corporate, designated) there shall be added after the item numbered 10 an item numbered “10A” comprising the following entries in the columns of that Part—

(a)in column 1 (specified name or description), “LondonClear Limited”,

(b)in column 2 (specified registration number or definition), “2108186”,

(c)in column 3 (specified relevant power), “Investment and support.”,

(d)in column 4 (specified purposes (if any)),“1 Facilitating the provision of banking services by the society or any associated body of the society.2 Facilitating the provision of investment services by the society or any associated body of the society.3 Facilitating the raising of funds and borrowing of money by the society or any associated body of the society.”

(e)in column 5 (specified limits and conditions (if any)), “—”.

(2)In Part II of the Schedule (interpretation), in place of paragraph 4 (meaning of group interest provision) there shall be substituted the following paragraph—“4 1 In this Schedule “the group interest provision” means a condition to the effect that—a where a society holds shares or corresponding membership rights in an appropriate vehicle and becomes aware that and a subordinate organisation of that appropriate vehicle is within the prohibited range, the society shall dispose of those shares or corresponding membership rights as soon as it is conveniently practicable to do so without undue loss, andb where a society has a relevant interest in a relevant body corporate, the society shall, within four months of the end of each financial year of that relevant body corporate at which year end the society has such an interest, seek to obtain a group income certificate in relation to that relevant body corporate, and, if no such certificate as is required by this paragraph is so obtained by the society for two successive financial years of the relevant body corporate, the society shall—i notify the Commission in writing, within 14 days of the end of the four months following the end of the second such financial year, that subparagraphii below applies to it,iias soon as it is conveniently practicable to do so without undue loss, dispose of sufficient shares or corresponding membership rights that it ceases to have a relevant interest in that body corporate, andiii within 14 days following that cessation, notify the Commission in writing thereof.2 For the purposes of subparagraph (1)(a) above, a subordinate organisation comes within the prohibited range where it comes within a description in paragraph 7(2)(b), (c), (d) or (e) below (or would do if it were a vehicle subject to the provisions of subparagraph 7(2) below).3 For the purposes of subparagraph (1)(b) above, “relevant interest” means—a shares or corresponding membership rights in a body corporate which is not a company limited by shares, orb sufficient shares in a body corporate which is a company limited by shares to give the society direct ownership or direct and indirect ownership (determined as specified in the definition of “subordinate organisation” in paragraph 10 below) of 15 per cent or more of the ordinary share capital (as defined within that definition) of that company.4 For the purposes of subparagraph (1)(b) above, “relevant body corporate” means an appropriate vehicle which has any subordinate organisation which is not an associated body of the society.5 For the purposes of this paragraph—a “group income certificate”, in relation to a relevant body corporate, means a certificate signed by a director of the relevant body corporate (and adequately supported by a report of its auditors) stating that at least 60 per cent of the consolidated gross income of the relevant body corporate and its subordinate organisations for the financial year to which the certificate relates was derived, subject to subparagraph (6) below, from carrying on qualifying activities, andb “qualifying activities” means activities the purpose of enabling a qualifying body to carry on which is a purpose for which the society has power to invest in or support a qualifying body.6 For the purposes of subparagraph (5)(a) above—a in calculating the consolidated gross income of the relevant body corporate and its subordinate organisations derived from carrying on qualifying activities, any income derived by such a subordinate organisation, or by an appropriate vehicle other than an appropriate estate agency vehicle, from activities which are qualifying activities only if they are undertaken together with estate agency work shall be deemed to be derived from carrying on activities which are not qualifying activities, andb a certificate is adequately supported by a report of the auditors of a relevant body corporate where the auditors have reported at least to the effect that—i they have examined the certificate,ii they have inquired into the affairs of the relevant body corporate, and obtained information from the society, to an extent necessary to consider whether there is any significant likelihood that the certificate is untrue in any material particular, andiii they consider that there is no significant likelihood that the certificate is untrue in any material particular.”

(3)In Part II of the Schedule, in paragraph 5 (meaning of investment and support limit for general insurance companies), in subparagraph (a) after the words “associated bodies” in both places where they appear there shall be inserted the words “and subordinate organisations”.

(4)In Part II of the Schedule, in paragraph 6 (meaning of business percentage certification condition for estate agency vehicles), subparagraph (2) shall be amended as follows—

(a)in paragraph (b) after the word “untrue” there shall be added the words “in any material particular”, and

(b)in paragraph (c) after the word “untrue” there shall be added the words “in any material particular”.

Contains public sector information licensed under the Open Government Licence v3.0.

The Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1988

The Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1988

Article 1Title and commencement#

Article 2Amendment of previous Order#

Schedule · Amendments to the building societies (designation of qualifying bodies) order 1988

Defined terms · 4

Connections

History · 1 version

Key facts

Article 1Title and commencement#

Article 2Amendment of previous Order#

Schedule · Amendments to the building societies (designation of qualifying bodies) order 1988