It will remove barriers to what they can do and strengthens bonds with members. It is a step towards giving societies the less restrictive framework they need for the modern and developing market in financial services. In future societies with their members will decide the financial services as well as mortgages that their society can offer, rather than have them limited by an outdated legal framework. Building societies will be able to do more of the things that their customers want them to do - such as offer general insurance. But any changes will have to be agreed by their members who in turn will get more information on their society and how it is run.
Building societies are much loved institutions.
They are at the heart of saving and lending in Britain. Societies will get the freedom to pursue the activities they have publicly set out. They will continue to be overseen by the Building Societies Commission. The Government announced the conclusion of the review of he Building Societies Act 1986 a year ago. It promised a draft bill for consultation.