FSA 2002/5
INTERIM PRUDENTIAL SOURCEBOOK FOR BUILDING SOCIETIES
(AMENDMENT No 2) INSTRUMENT 2002
Power exercised
A.
The Financial Services Authority amends the Interim Prudential Sourcebook for
Building Societies (IPRU(BSOC)) in the exercise of the following powers and related
provisions in the Financial Services and Markets Act 2000 (the “Act”):
(1)
(2)
(2)
B.
section 138 (General rule-making power)
section 156 (General supplementary powers)
section 157(1)(b) (Guidance).
The provisions of the Act relevant to making rules and listed above are specified for
the purpose of section 153(2) of the Act (Rule-making instruments).
Commencement
C.
This instrument comes into force on 1 May 2002.
Amendment of the Interim Prudential sourcebook for building societies
D.
IPRU(BSOC) is amended in accordance with the Annex to this instrument.
Citation
E.
This instrument may be cited as the Interim Prudential Sourcebook for Building
Societies (Amendment No 2) Instrument 2002.
By order of the Board
21 February 2002
ANNEX
The Interim Prudential sourcebook for building societies is amended in accordance with the
following table.
IPRU (BSOC) Volume 1 – Introduction X.8.2 R
IPRU (BSOC) Volume 2 – Chapter 1 Access to Register of Members– Annex A
(Extract from the 1986 Act)
IPRU (BSOC) Volume 2 – Chapter 2 Merger Procedures - 6.3 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures - 1.1 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures - 1.10 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 2.2 G
Substitute for “9.27” the figures “9.2.7”
In the text of Schedule 2, paragraph 15 –
(i) in sub-paragraph (1)(b), substitute for
“granted” the word “given”,
(ii) after sub-paragraph (2)(b), omit the
words
“and
(c) on payment by the applicant of a
reasonable fee;” and
(iii) after sub-paragraph (2) insert the
following –
“(2A) The Authority may charge a
reasonable fee for considering an application
under sub-paragraph (2) above.”
At the end of that paragraph add “The
statement must include particulars of any
compensation payable to directors or other
officers of the transferor society to which the
Authority has given its consent under
paragraph 2(1) of Schedule 8A to the 1986
Act.”
In the second sentence, substitute for
“authorised for the purposes of the Act to
accept deposits” the words “having
permission under the Act to carry on those
regulated activities which it will undertake as
a result of the transfer.”
After the words “(Mutual Societies) Order
2001” insert “and the Financial Services and
Markets Act 2000 (Consequential
Amendments and Repeals) Order 2001”.
In the penultimate sentence, substitute for
“authorisation to accept deposits” the words
“permission to carry on the regulated
activities which it will undertake as a result
of the transfer”.
IPRU (BSOC) Volume 2 – Chapter 3 –
Transfer Procedures - 2.8 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 2.10 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 2.12 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 2.14 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 2.16 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 3.19 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 3.22 G
In the third sentence, substitute for
“authorisation of” the words “permission to
be given to”.
In (d) of the final sentence, substitute for
“authorisation to accept deposits” the words
“permission to carry on the regulated
activities which it will undertake as a result
of the transfer”.
In the final sentence, substitute for
“important factors in its authorisation
process” and insert “relevant to the terms of
its successor company’s permission”.
In the final sentence, substitute for “for the
purposes of authorising the successor
company to accept deposits” the words “in
connection with the successor company’s
permission to carry on the regulated activities
which it will undertake as result of the
transfer”.
In the first sentence, substitute for “be
authorised, or, as the case may be, to
continue to be authorised, to accept
deposits.” the words “have permission to
carry on such regulated activities as will
enable it to undertake the business it will
have as result of the transfer.”
In the second sentence, substitute for
“become a credit institution which is
authorised to accept deposits for the purposes
of the Act” the words “have such permission
under the Act as will enable it to carry on the
business which it will have as a result of the
transfer”.
In the second sentence, substitute for
“become or, as the case may be, remain a
credit institution which is authorised to
accept deposits for the purposes of the Act”
the words “have such permission under the
Act as will enable it to carry on the business
which it will have as a result of the transfer”.
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 3.23 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 4.15 G
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 4.17 G
In the first sentence, substitute for “be
authorised to accept deposits” the words
“have the required permission under the
Act”.
In the second sentence, substitute for
“subsequent authorisation” the words “the
subsequent obtaining of the necessary
permission”.
In the third sentence, after “successor
company, upon transfer” insert “ on terms
which will enable it to carry on the business
it will have following the transfer”.
In sub-paragraph (k), substitute for “to accept
deposits” the words “on terms which will
enable it to carry on the business it will have
as a result of the transfer”.
Substitute for “pass copies of them, and the
Transfer Document, to the Central Office for
filing. If a public announcement of the
transfer proposal was not to be made until
after the Authority had approved the Transfer
Statement, the Authority would not pass
copies of the Statement, Summary or
Document to the Central Office until after the
announcement. None of the other documents
referred to in paragraph 4.15 will be passed
to the Central Office” the following “arrange
for copies of the Transfer Document and
Transfer Statement, if printed separately, to
be placed on the public file. If a public
announcement of the transfer proposal is not
to be made until after the Authority has
approved the Transfer Statement, or until the
Transfer Document is sent to the society’s
members, the Document and Statement will
not be placed on the public file until after the
announcement. None of the other documents
referred to in paragraph 4.15 above will be
placed on the public file.”
IPRU (BSOC) Volume 2 – Chapter 3 Transfer Procedures – 6.4 G
IPRU (BSOC) Volume 2 – Chapter 5 Transfer Confirmation Procedures – 5.2.2 G
In the first sentence, substitute for the
Confirmation Criterion in 6.4(c) the
following –
“(c) there is a substantial risk that the
successor will not have –
(i) such permission under Part IV of the Act,
or
(ii) such permission under paragraph 15 of
Schedule 3 to the Act (as a result of
qualifying for authorisation under paragraph
12 of that Schedule),
as will enable it to carry on the business
which it will have as a result of the transfer
without being taken (by virtue of section 20
of the Act) to have contravened a
requirement imposed on it by the Authority
under the Act; or”.
For sub-paragraph (3) substitute the
following –
“(3) there is a substantial risk that the
successor will not have –
(i) such permission under Part IV of the
Financial Services and Markets Act 2000, or
(ii) such permission under paragraph 15 of
Schedule 3 to that Act (as a result of
qualifying for authorisation under paragraph
12 of that Schedule),
as will enable it to carry on the business
which it will have as a result of the transfer
without being taken (by virtue of section 20
of that Act) to have contravened a
requirement imposed on it by the Authority
under that Act; or”.