Consultation outcome

The future of building societies

This consultation was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Detail of outcome

The outcome of this consultation was reported in the government’s wider response on banking reform. The final position for building societies on ring-fencing, as well as a number of further legislative changes recommended by consultees, was brought into law by the Financial Services (Banking Reform) Act, which received Royal Assent in December 2013.

Original consultation

This consultation ran from to

Summary

Seeking views to maintain the distinctiveness of building societies while creating a level playing field and removing unnecessary barriers to growth.

Documents

The future of building societies

This file may not be suitable for users of assistive technology. Request a different format.

If you use assistive technology and need a version of this document in a more accessible format, please email editor@hmtreasury.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Consultation description

Setting out the government’s aim to maintain the distinctiveness of the sector while creating a level playing field and removing unnecessary barriers to growth. It will amend the Building Societies Act to widen the opportunities for building societies and to align them with the ring fenced banks without compromising their mutuality and the pivotal role they play in supporting the aspirations of families. The loss-absorbency proposals will apply to building societies as they will for banks of a similar profile. More detail will be announced in due course.

Furthermore, the government is open to reviewing those parts of the Building Societies Act that the sector believes restrict them, where this is in accordance with maintaining their distinctiveness as part of its drive to foster diversity in the financial sector.

Background

The government White Paper ‘Banking Reform: delivering stability and supporting a sustainable economy’, published on 14 June 2012, announced that the government would shortly publish a discussion document on the building societies sector, setting out the full detail of its proposals for building societies, and its aspirations for the sector.