The Building Societies (Accounts and Related Provisions) (Amendment) Regulations 2007

in paragraph (1), for “in Part I” substitute “the relevant Part”;

after paragraph (1), insert—

“(1A)

For the purposes of paragraph (1) “the relevant Part”, for a society whose annual accounts are Building Societies Act accounts, is Part I, and for a society whose annual accounts are IAS accounts, is Part IA.”;

in paragraph (2), for “Paragraph (1) is” substitute “Paragraphs (1) and (1A) are”;

in paragraph (2)(b), for “Part I” substitute “Parts I and IA”.

in paragraph 7(1), after “report” insert “prepared by the directors of a society whose annual accounts are Building Societies Act accounts”;

after paragraph 7(1), insert—

“(1A)

The directors’ report prepared by the directors of a society whose annual accounts are IAS accounts shall disclose, in accordance with sub-paragraph (2)—

(a)

free capital as a percentage of the total of the liability items listed in sub-paragraph (1B) as shown in the annual accounts; and

(b)

gross capital as a percentage of the total of the liability items listed in sub-paragraph (1B) as shown in the annual accounts.

(1B)

The liability items are shares, amounts owed to credit institutions, amounts owed to other customers, and debt securities in issue.”;

in paragraph 7(2), for “sub-paragraph (1)” substitute “sub-paragraphs (1) and (1A)”;

in paragraph 8, renumber the existing provision as sub-paragraph (1);

in paragraph 8(1), after “report” insert “prepared by the directors of a society whose annual accounts are Building Societies Act accounts”;

after paragraph 8(1), insert—

“(2)

The directors’ report prepared by the directors of a society whose annual accounts are IAS accounts shall disclose in respect of mortgage accounts of the society and of any subsidiary undertaking twelve or more months in arrears at the balance sheet date—

(a)

the number of such accounts;

(b)

the total amount (before any provision for impairment losses) outstanding on such accounts; and

(c)

the total amount of arrears on such accounts.”.

in paragraph 1(1)(a), for “as defined in section 6(2) and (3)” substitute “for the purposes of section 6(1)”^f1;

in paragraph 1(1)(c), for “as defined in section 7(2) and (3)” substitute “for the purposes of section 7(1)”^f2;

in paragraph 1(3), after “sub-paragraph (1)(a)” insert “for a society whose annual accounts are Building Societies Act accounts”;

after paragraph 1(3), insert—

“(4)

For the purpose of calculating the percentage required to be stated by sub-paragraph (1)(a) for a society whose annual accounts are IAS accounts, the liquid assets and fixed assets of the society and any subsidiary undertakings referred to in paragraphs (a) and (b) of section 6(2) of the Act are those included in the balance sheet.”;

in paragraph 2(1), after “statement of a society” insert “whose annual accounts are Building Societies Act accounts”;

after paragraph 2(1), insert—

“(1A)

Subject to the following provisions of this paragraph, the annual business statement of a society whose annual accounts are IAS accounts shall state the following particulars in respect of the society both in relation to the financial year with which it deals and in relation to the previous financial year—

(a)

as a percentage of the total of the liability items listed in sub-paragraph (1B) as at the balance sheet date—

(i)

the gross capital as at that date;

(ii)

the free capital as at that date; and

(iii)

liquid assets as of that date;

(b)

the profit or loss after taxation as a percentage of the mean total assets; and

(c)

management expenses as a percentage of the mean total assets.

(1B)

the liability items are shares, amounts owed to credit institutions, amounts owed to other customers, and debt securities in issue.”;

in paragraphs 2(2) and (4), after “sub-paragraph (1)” insert “or (1A)”;

in paragraph 2(5), for “in this paragraph” substitute “for the purposes of sub-paragraph (1) and this sub-paragraph”;

after paragraph 2(5), insert—

“(5A)

For the purposes of sub-paragraph (1A)—

(a)

“management expenses” means the total of the administrative expenses, depreciation and amortisation as shown in the annual accounts;

(b)

“mean total assets” means, in respect of a financial year, the average amount of total assets as would have been included in the balance sheet throughout that year, calculated on a reasonable basis;

(c)

“the profit or loss after taxation” shall be taken from the annual accounts; and

(d)

“liquid assets” means—

(i)

cash and cash equivalents;

(ii)

treasury bills and similar securities;

(iii)

loans and advances to credit institutions; and

(iv)

debt securities and other fixed income securities.”;

in paragraphs 2(6) and (7), for “sub-paragraph (5)(b)” substitute “sub-paragraphs (5)(b) and (5A)(b)”.

in Part I, after “Format of summary financial statement” insert “(Building Societies Act accounts society)”;

before Part II, insert the text set out in the Schedule to these Regulations;

in Part II—

for the definition of “EEA State” substitute—

• ““EEA State” has the meaning given by Schedule 1 to the Interpretation Act 1978^f1;”;

in the definition of “liquid asset”, after ““liquid asset”” insert “(except in paragraph 2(1A) of Schedule 9)”.