# The Building Societies Investor Protection Scheme (Maximum Protected Investment) Order 1987, Note: Explanatory note


(This note is not part of the Order)
The investor protection scheme provided for in the Building Societies Act 1986 gives those who have invested money in a building society which has become insolvent the right to receive a payment from a fund to which all authorised building societies are required to contribute. The amount to which each investor is entitled under the scheme is a proportion (normally 90 per cent) of his protected investment. Subsection (5) of section 27 of the 1986 Act provides that an investor’s protected investment in a society is the total liability of the society to him which is referable to sums deposited with the society or to shares in the society, subject to a specified maximum. This Order amends that subsection so as to increase the maximum from £10,000 to £20,000.

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Source: https://www.legislation.gov.uk/uksi/1987/1349/note (the official version)
Page: https://openlegislation.uk/building-societies-investor-protection-scheme-maximum-protected-investment-order-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.