Amendment 142E to the Financial Services and Markets Bill [HL]
As introduced by Baroness Bowles of Berkhamsted, at Grand Committee of the House of Lords, on 6th July 2026.
Financial Services and Markets Bill
https://bills.parliament.uk/bills/4129
Extract from the Fifth Marshalled List
https://bills.parliament.uk/publications/67088/documents/8551
Parliamentlive.tv
https://parliamentlive.tv/event/index/5f7cae32-6994-426f-9c0e-77a93b35a91f?in=17:42:12
Amendment 142E
(1) The Treasury must, within six months of the day on which this Act is passed, make regulations by statutory instrument requiring the Financial Conduct Authority to make rules establishing minimum governance standards for authorised building societies.
(2) Regulations under subsection (1) must require the Financial Conduct Authority to make rules ensuring that—
(a) elections of directors are conducted in accordance with minimum
democratic standards, including—
(i) equal treatment of candidates in election materials and communications;
(ii) protection of candidates’ election addresses from alteration except with the candidate’s request or written consent or where alteration is required by law or for production purposes;
(iii) minimum statutory duties and reporting requirements for
independent scrutineers;
(b) voting arrangements prohibit bundled voting instructions and require voting instructions to be determined separately in respect of each candidate and each resolution;
(c) members approve, by ordinary resolution at intervals not exceeding three years, the remuneration policy for directors and senior executives;
(d) every authorised building society whose total assets exceed £5 billion maintains not fewer than two board positions to be filled by
member-nominated directors elected by Members;
(e) every annual general meeting is held at a physical place whilst permitting additional participation by electronic means;
(f) every question submitted by a member for an annual general meeting,
together with the building society’s response or the reasons for not
providing a response, is published following the meeting.
(3) Before making rules under this section the Financial Conduct Authority must consult—
(a) HM Treasury;
(b) the Prudential Regulation Authority;
(c) representatives of authorised building societies;
(d) organisations appearing to represent the interests of members.
(4) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”
Member's explanatory statement
This amendment requires HM Treasury to require the Financial Conduct Authority to establish minimum governance standards for authorised building societies. It applies governance principles already recognised by Parliament in relation to listed companies, occupational pension schemes and statutory democratic elections to member-owned financial institutions.