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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Building Societies Investor Protection Scheme (Maximum Protected Investment) Order 1987 No. 1349 URL: http://www.bailii.org/uk/legis/num_reg/1987/uksi_19871349_en.html |
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Statutory Instruments
BUILDING SOCIETIES
Made
23rd July 1987
Coming into force
1st October 1987
The Treasury, in exercise of the powers conferred on them by section 27(6) of the Building Societies Act 1986(1) and after consultation with the Building Societies Investor Protection Board established by section 24 of that Act, hereby make the following Order, a draft of which has been laid before, and approved by a resolution of, each House of Parliament:
1. This Order may be cited as the Building Societies Investor Protection Scheme (Maximum Protected Investment) Order 1987 and shall come into force on 1st October 1987.
2. In section 27(5)(b) of the Building Societies Act 1986 (amount of investor's protected investment), for "£10,000" there shall be substituted "£20,000".
Michael Neubert
Peter Lloyd
Two of the Lords Commissioners of Her Majesty's Treasury
23rd July 1987
(This note is not part of the Order)
The investor protection scheme provided for in the Building Societies Act 1986 gives those who have invested money in a building society which has become insolvent the right to receive a payment from a fund to which all authorised building societies are required to contribute. The amount to which each investor is entitled under the scheme is a proportion (normally 90 per cent) of his protected investment. Subsection (5) of section 27 of the 1986 Act provides that an investor's protected investment in a society is the total liability of the society to him which is referable to sums deposited with the society or to shares in the society, subject to a specified maximum. This Order amends that subsection so as to increase the maximum from £10,000 to £20,000.
