| Commentary

41 Issued capital

| Commentary

41 Issued capital1

For the purpose of calculation of ‘own funds’ for capital adequacy purposes2deferred shares may be included as Tier 1 capital provided that they meet the requirements of the Interim Prudential Sourcebook for Building Societies (IPRU (BSOC)) 23, and undated subordinated debt4 may be included as Upper Tier 2 capital and term subordinated debt5 as Tier 2 capital provided in each case that they conform to the guidance in IPRU (BSOC) 26.

For a share issued by a building society after 1 June 19917, to qualify as a deferred share, it must satisfy two conditions:

  1. 41.1

        the terms of

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