Explanatory note

These Rules amend the Building Societies (Aggregation) Rules 1993. First, they amend the definition of “attributable assets” (those assets of associated bodies which are to be aggregated with assets of societies under rule 7) to include loans not made to individuals or which would cause any limit in section 16 of the Building Societies Act 1986 to be exceeded. Secondly they amend the definition of “excluded assets” to include assets representing the long term business fund maintained under the equivalent in other jurisdictions of section 28(1)(b) of the Insurance Companies Act 1982. Thirdly, rule 7 is amended to provide that such loans may be attributed as class 3 assets of a society (notwithstanding that they could not otherwise count as class 3 assets of the society because the society could not make them itself).

A review of the cost of compliance with these Rules has been undertaken and the resulting compliance cost assessment may be purchased from the Secretary, Building Societies Commission, 15 Great Marlborough Street, London W1V 2AX.