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The Building Societies (Provision of Services) (No. 3) Order 1987

S.I. 1987/1976 · Made 18 November 1987

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

Approved by both Houses of Parliament

Made 18th November 1987

Coming into force 19th November 1987

The Treasury, in exercise of the powers conferred on them by section 34(2) and (8) of the Building Societies Act 1986f1, hereby make the following Order, a draft of which has been laid before, and approved by a resolution of, each House of Parliament.

Annotations to the whole text

Footnotes

f1

1986 c. 53.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Additional services that may be provided by building societies
  4. 4Restrictions in relation to the provision of investment advice
  5. 5Definitions relating to investment services
  6. Signature
  7. Explanatory note

1Citation and commencement

This Order may be cited as the Building Societies (Provision of Services) (No. 3) Order 1987 and shall come into force on the day after the day on which it is made.

2Interpretation

In this Order, “the Act” means the Building Societies Act 1986.

3Additional services that may be provided by building societies

The list of services in Part I of Schedule 8 to the Act shall be varied by the addition of the following after the service numbered 6 —

“6A

Giving investment advice.

6B

Arranging for the provision of units in a unit trust scheme.”.

4Restrictions in relation to the provision of investment advice

Part III of Schedule 8 to the Act shall be varied by the insertion of the following paragraph after paragraph 5 —

“Giving investment advice

5A

The power to give investment advice is restricted to giving advice to individuals.”.

5Definitions relating to investment services

Part IV of Schedule 8 to the Act shall be varied by the insertion of the following definition after the definition of “estate agency work” in paragraph 7 —

““investment” means any asset, right or interest falling within any paragraph in Part I of Schedule 1 to the Financial Services Act 1986f1, and “investment advice” means advice of the kind specified in paragraph 15 of Part II of that Schedule;”.

Signature

Mark lennox-Boyd

Tony Durant

Two of the Lords Commissioners of Her Majesty’s Treasury

18th November 1987

Explanatory note

(This note is not part of the Order)

This Order varies Schedule 8 to the Building Societies Act 1986, which specifies financial services building societies are empowered to provide, subject to adoption in a memorandum of powers, and the restrictions applying in relation to the provision of particular services. The list of services in the Schedule is extended to include the provision of investment advice to individuals, and arranging for customers to acquire units in a unit trust. For the purpose both of the new power to give investment advice and of the power already available to societies under Schedule 8 to arrange for the provision of investment services, a definition of “investment” is added to the Schedule. This is by reference to the definition in the Financial Services Act 1986, which includes shares, debentures, government stock, options, futures and certain insurance contracts.