Key Facts

• The Bill aims to put the building society sector on a more level playing field with banks.
• Building societies hold over £352 billion of mortgage assets and over £313 billion in savings from individuals.
• Clause 1 amends section 7 of the Building Societies Act 1986 to allow HM Treasury to specify certain funds to be disregarded, enabling building societies to maintain solvency during economic pressures.
• The Building Societies Act 1986 (Amendment) Bill amends section 7(3) of the 1986 Act.
• Clause 2 allows building societies to hold hybrid meetings in line with company law.
• Clause 3 enables increased flexibility for common seals and document execution.
• The amendments support the sector's request and aim to unlock billions.
• Building societies are member-owned financial institutions that encourage savings, lending, and promote financial inclusion.
• The Bill levels the playing field between building societies and retail banks in terms of capital access.
• Building societies will adhere to same capital requirements as retail banks.
• At least 50% of funding for building societies must come from members.
• The Bill allows real-time virtual member participation at meetings, promoting wider membership engagement.
• Decision on hybrid meetings lies with individual building society members.
• The Treasury gets powers to align constitutional provisions concerning common seals and document execution with modifications in company law.