ANALYSING THE NEW POWERS GIVEN TO BUILDING SOCIETIES
| DOI | https://doi.org/10.1108/eb024849 |
| Date | 01 March 1995 |
| Pages | 275-279 |
| Published date | 01 March 1995 |
| Author | STEVE CROWTHER |
| Subject Matter | Accounting & finance |
ANALYSING THE NEW POWERS GIVEN TO BUILDING
SOCIETIES
Received: 16th February, 1995
STEVE CROWTHER
STEVE CROWTHER
IS
THE PARTNER RESPONSIBLE FOR THE
PRICE WATERHOUSE BUILDING
SOCIETIES SPECIALIST UNIT. HE HAS
SPECIALISED IN BUILDING SOCIETY AND
FINANCIAL SERVICE CLIENTS FOR THE
PAST
TEN YEARS AND IS THE AUDIT
PARTNER FOR NATIONWIDE BUILDING
SOCIETY AS WELL AS BEING
RESPONSIBLE FOR A NUMBER OF
BANKS.
HE IS A MEMBER OF THE
INSTITUTE OF CHARTERED
ACCOUNTANTS IN ENGLAND AND WALES
BUILDING SOCIETY ADVISORY
COMMITTEE AND REGULARLY MAKES
PRESENTATIONS TO THE INSTITUTE'S
ANNUAL TRAINING CONFERENCE FOR
BUILDING SOCIETIES.
ABSTRACT
The purpose of this paper is to look at
what is currently being
considered
and
debated
in the
building society
industry.
It
focuses more on
proposed changes
rather
than on actual
new powers
that have
been
given to
societies.
(The paper was written
prior to the announcement of the Leeds
and Halifax merger and, more impor-
tantly, their
conversion
from mutuality —
this has tempered the outlook on the
future
somewhat.)
INTRODUCTION
In order to understand the back-
ground to the current review process
it is necessary to go back to 1981 and
the start of the process leading up to
the Financial Services Act 1986 (the
Act),
which came about as a result of
the significant change taking place in
the marketplace, principally as
deregulation in the financial services
industry had put pressure on both
sides of societies' balance sheets.
Societies were reviewing their posi-
tion and considering what powers
they would need to remain compet-
itive and to be able to offer a full
range of services in the same way as
the banks. The extant Act then dated
from 1962 but was based heavily on
the 1874 Act which effectively
restricted societies to their principal
purpose of raising retail funds in
275
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