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The Building Societies (Liquid Asset) (Amendment) Regulations 1995

S.I. 1995/550 · Made 16 February 1995

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

BUILDING SOCIETIES

Made 16th February 1995

Laid before Parliament 7th March 1995

Coming into force 1st April 1995

The Building Societies Commission, with the consent of the Treasury, in exercise of the power conferred on it by section 21(7) of the Building Societies Act 1986f1, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1986 c. 53.

Contents

  1. 1Citation and commencement
  2. 2Amendment of principal Regulations
  3. Signature
  4. Explanatory note

1Citation and commencement

These Regulations may be cited as the Building Societies (Liquid Asset) (Amendment) Regulations 1995 and shall come into force on 1st April 1995.

2Amendment of principal Regulations

The Schedule to the Building Societies (Liquid Asset) Regulations 1991f1 shall be amended—

(a)

by the substitution in paragraph 1 of Part II of the words “paragraph 2(a) or (c) or 3(1)” for the words “paragraphs 2(a) or (c), 3(1)(a)”; and

(b)

by the substitution in Part III of the following for paragraph (ii) of the definition of “mortgage backed securities”—

“(ii)

securities which are guaranteed, in respect of the timely repayment of principal and timely payment of interest, by the Government National Mortgage Association of the United States of America, the Federal National Mortgage Association of the United States of America or the Federal Home Loan Mortgage Corporation of the United States of America;”.

Signature

In witness whereof the common seal of the Building Societies Commission is hereunto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on

L.S.

T. Matthews

A member of the Commission

16th February 1995.

We consent to these Regulations

T. Kirkhope

A. Mitchell

Two of the Lords Commissioners of Her Majesty’s Treasury

2nd March 1995

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Building Societies (Liquid Asset) Regulations 1991. First the existing Regulations provide (in paragraph 1 of Part II of the Schedule) that a deposit with a gilt-edged market maker or a Stock Exchange money broker, or a stock lending right against such a broker, is a liquid asset only where the deposit is secured by the transfer to the society of certain liquid assets which in the case of securities must be of the kind mentioned in paragraph 3(1)(a) of Part I of the Schedule (certain government securities). These Regulations extend the category of permitted security instruments to include the other types of securities mentioned in paragraph 3(1) (those issued by EC credit institutions, certain international organisations and local and other authorities). Secondly these Regulations add to the definition of “mortgage backed securities” in Part III of the Schedule securities guaranteed (as to the timely repayment of principal and payment of interest) by the Federal National Mortgage Association of the United States of America (known as “Fannie Mae”) or the Federal Home Loan Mortgage Corporation of the United States of America (known as “Freddie Mac”).

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