BSOCS 6
Business model diversification
BSOCS 6.1
Pre-notification of business model diversification
- 01/04/2010
BSOCS 6.1.1
See Notes
Any society which proposes to embark on any diversification into an area (whether regulated or unregulated, associated with the retail housing market or otherwise):
(1) which is not covered by the BSOCS tables; and
(2) where the investment (of any form) to set it up exceeds 5% of own funds or the projected post implementation income within any of the 3 years following the diversification exceeds 10% of projected net interest margin plus other income net of commission paid for that year;
should pre-notify the
FSA
and provide a board-approved best/worst case analysis of the risks and potential exit costs, together with a revised ICAAP for supervisory review and evaluation before proceeding, whether the proposed diversification is by acquisition or by investment to enter an area or facilitate organic growth.- 01/04/2010