Building Societies (Funding) and Mutual Societies (Transfers) Bill

moved Amendment No. 4: 4: Clause 3, page 4, line 10, leave out from second ““a”” to end of line 13 and insert ““relevant company—”” The noble Lord said: The fourth and fifth amendments introduce the term ““relevant company”” in Clause 3 and define this term. The effect is that a transfer of a mutual society’s business under the modified procedures could be to a UK company or to a body corporate incorporated in any other EEA state, provided that that company or body is controlled by another mutual society. Again, this is intended to reduce the risk of breaching EC law. Under Clause 3 as it stands, a mutual in another EEA state would have to establish a UK company subsidiary in order to benefit from the changes. That could put it at a disadvantage, as it might face more practical difficulties establishing and running a UK company subsidiary than a UK mutual would. The changes ensure that UK and EEA mutual societies wishing to acquire other mutual societies are treated equally on a level playing field. I beg to move.