# The Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1994, Note: Explanatory note


(This note is not part of the Order)
This Order amends the Building Societies (Designation of Qualifying Bodies) Order 1993 and the Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993. Firstly, the No. 1 order, which designates funding bodies, is amended to make funding bodies subject to a “qualifying activities condition”, in the same terms as in paragraph 4 of Part II of the Schedule to the No. 3 Order. The No. 3 Order is amended to make general insurance bodies subject to that condition also. Secondly, in both Orders, the purposes for which a society may invest in a body subject to the “qualifying activities condition” are extended to include enabling the body to carry on (alongside the activities currently mentioned in column 4 of Part I of the relevant Schedule) any activity which is within the powers of the body, but the additional activities will not count as qualifying activities for the purposes of the “qualifying activities condition” (so that not more than 40% of the society’s consolidated gross income can be derived from them).
Thirdly, paragraph 5 of Part I of Schedule 1 to the No. 1 Order and paragraph 7 of Part II of the Schedule to the No. 3 Order (which restrict a body from engaging in “activities in the range from which the society is restricted”) have been deleted. In relation to Girobank plc, the applicable provisions of paragraph 7 have been re-enacted in paragraph 11, but the meaning of “activities in the range from which a society is restricted” is amended to exclude simple investment in and support, or support of another body corporate.
A review of the cost of compliance with this Order 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.

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Source: https://www.legislation.gov.uk/uksi/1994/2457/note (the official version)
Page: https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-amendment-order-1994/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.