Explanatory note

These Regulations set out (in Parts I and II of the Schedule) the liquid assets which a building society may hold under section 21 of the Building Societies Act for the purposes of meeting its liabilities as they arise. They replace article 7 of the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986. Regulation 4 empowers societies to continue to hold previously acquired assets which fall outside Parts I and II of the Schedule but are validly held by virtue of that article, and assets which following acquisition have ceased being liquid assets (for example where an institution ceases to be a Banking Act authorised institution).