What is the charitable assignment scheme?
This is the arrangement under which all members of the Society joining after 31 March 2000 are required to assign to charity any future benefits, in the unlikely event of the transfer of the Society’s business to a bank or other company announced within five years of their account opening. We have chosen the well known charities Aid Foundation as the charity to benefit from any potential windfalls.
Why was the scheme introduced?
The Society found that service to existing members had at times been disrupted by the actions of speculators. To avoid such disruption, all new members are required to agree to assign to charity any conversion benefits to which they might become entitled in the future.
Can I join the Society without assigning to charity any potential future benefits?
No. It is a condition of all new account openings, that if you are not already a member of the Society, you must assign any potential conversion benefits to charity
Can I be released from the charitable assignment?
No. The charitable assignment is irrevocable.
What if I was a member of the Society before March 2000, but now open another account?
If you were a member of the Society before 31 March 2000 and have been a member continuously since that date, but now open another account, the charitable assignment will not apply to you. You will not be required to make a charitable assignment declaration.
What if I close one account and open another?
Provided both accounts are membership accounts with the first having been open for more than five years and there is no break in membership between one account being closed and the other opened, then the charitable assignment will not apply and you will not be required to make a charitable assignment.
Does this mean the Society is planning to convert?
No. The Society has never wavered in its commitment to remaining an independent building society.
The concept of raising and lending funds to our members i.e. mutuality, is the fundamental objective of the Society. This objective can best be achieved by providing a range of competitive investment and mortgage products tailored to the needs of both new and existing members, by maintaining a strong capital base and by continuing the Society’s commitment to improve quality of service and value to members.
The Directors believe that an independent, mutual organisation provides the right environment for the achievement of this objective.