§ Mr. Weetchasked the Chancellor of the Exchequer whether steps are taken to check the content of building society annual reports and annual returns.
§ Mr. Bruce-GardyneThe particulars to be disclosed in the annual return and accounts of a building society are304W set out in the Building Societies (Accounts and Annual Return) Regulations 1981. The annual return and accounts are subject to audit by a qualified auditor, who must make sufficient checks to be in a position to report as to whether those show a true and fair view and comply with the various requirements. An auditing guideline for the auditors of building societies, prepared by the auditing practices committee, was issued in January this year.
The audited accounts and annual returns are submitted to the Chief Registrar of Friendly Societies, who arranges for their examination as part of the work undertaken on the prudential supervision of building societies and administration of the Building Societies Acts.
The annual reports of building societies are the responsibility of the directors, although they have to include certain matters specified in the Building Societies Act 1962.
§ Mr. Weetchasked the Chancellor of the Exchequer if he will seek to legislate to provide that the requiring of building society members who have been granted access to their soiety's register of members to clear the text of their communication with the directors of the society shall not be permissible.
§ Mr. Bruce-GardyneNo. Section 63(3) of the Building Societies Act 1962 empowers the Chief Registrar, when making a direction to enable a member to have access to the register, to impose such limitations or conditions as he thinks fit. The decision by the previous Chief Registrar, set out on pages 80 to 83 of his report for 1980, explained why, following experience of the use of a similar direction on the previous year, he attached a condition requiring the member to show his draft circular to the society, which could refer objections to the Chief Registrar on the grounds that it contained a misrepresentation as to fact.
I see no good reason to interfere with the discretion of the Chief Registrar to impose such conditions as he thinks fit in the interest of the generality of members, in the light of the circumstances of the particular case and of experience generally with such directions.