Building Societies (Funding) and Mutual Societies (Transfers) Act 2007

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Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 [1]
Act of Parliament
Royal Coat of Arms of the United Kingdom (variant 1, 1952-2022).svg
Parliament of the United Kingdom
Long title An Act to make provision in relation to funding limits in respect of building societies; to provide consequential rights to building society members; and to make provision in connection with the transfer of the business of certain mutual societies.
Citation 2007 c. 26
Introduced bySir John Butterfill MP, 13 December 2006 [2] (Commons)
Territorial extent United Kingdom [3]
Dates
Royal assent 23 October 2007
Commencement According to statutory instruments [4]
Status: Partly in force
History of passage through Parliament
Text of statute as originally enacted
Text of the Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (c. 26) (sometimes referred to as the Butterfill Act) is an act of Parliament of the Parliament of the United Kingdom. The act gives building societies greater powers to merge with other companies.

Contents

Passage through Parliament

The bill was introduced as a private member's bill by Conservative Member of Parliament Sir John Butterfill, originally titled the Financial Mutuals Arrangements Bill. It was also known as the Butterfill Bill. [5]

Provisions

The act allowed building societies to merge with other financial mutuals. [5] The act changed the minimum threshold for retail markets from 50% to 25%. [6]

Reception

The legislation received cross-party support during its passage in Parliament. [7]

Mergers under the act

There have been several high-profile mergers under the auspices of the act.

In August 2009, Britannia Building Society merged with Co-operative Financial Services (part of The Co-operative Group). Britannia initially continued as a brand, although owned by the Co-op. [8]

In February 2011, Kent Reliance Building Society pooled its assets with American private equity bank J.C. Flowers & Co.. J.C. Flowers & Co. has a 40% interest in the new bank, named OneSavings Bank plc, with the other 60% in the hands of Kent Reliance Provident Society, a mutual organisation owned by former Kent Reliance BS members. The bank trades as Kent Reliance.[ citation needed ]

See also

References

  1. ↑ The citation of this act by this short title is authorised by section 6(1) of this act.
  2. ↑ HC Deb, 13 December 2007
  3. ↑ The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007, section 6(3)
  4. ↑ "The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007" (PDF). Archived from the original (PDF) on 4 July 2009. Retrieved 9 January 2009.
  5. 1 2 Saunders, Tim (14 October 2008). "MP smoothes way for future mergers". Daily Echo. Archived from the original on 3 September 2025. Retrieved 3 September 2025.
  6. ↑ "MP Butterfill bids to strengthen mutuals". Money Marketing. 1 February 2007. Archived from the original on 3 September 2025. Retrieved 3 September 2025.
  7. ↑ Michie, Jonathan; Llewellyn, David T. (22 March 2010). "Converting Failed Financial Institutions into Mutual Organisations". Journal of Social Entrepreneurship. 1 (1): 146–170. doi:10.1080/19420671003629789. ISSN   1942-0676.
  8. ↑ "Britannia and Co-op are to merge". BBC News. 21 January 2009. Archived from the original on 24 January 2009. Retrieved 3 September 2025.
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