Why has the Board of the Society proposed these changes?

The Society has evolved from its original conception. Its primary activity has recently been to distribute the dividend income it receives from its assets, the shares it holds in OSB GROUP PLC, to charity.

Transferring the Society’s assets to a new charity is being proposed for the following reasons:

  • It will ensure the future use of those assets for charitable purposes.
  • It will maintain the shared heritage of the Bank and the Society as successors of Kent Reliance Building Society.
  • It will be more efficient as the costs of running the new charitable foundation are expected to be less than those of the Society.
  • The charitable foundation will be subject to robust governance and controls and will be registered with the Charity Commission.
  • The directors of the charitable foundation will consider how best to invest and manage its assets for its charitable purposes

What are the benefits of transferring the assets to a new charity?

  • The charity will be legally obliged to use its assets for charitable purposes. Currently, the Society’s purposes are more broadly defined; those assets could be used for other purposes and the use of the dividend income for charitable purposes is subject to an annual vote of members.
  • There are tax benefits that registered charities have which don’t apply to the Society. As a result it is anticipated that the charity could sell the shares the Society holds in OSB GROUP PLC without incurring, or being able to recover, capital gains tax. The directors of the new charitable foundation may choose to do this to diversify its investment.
  • The new charitable foundation will be simpler with lower administrative costs. For example, it will not be required to hold an annual general meeting of members.

What will happen to the prize draw?

The Bank will, for the foreseeable future, continue the monthly prize draw. It is likely that this will evolve over time as the Bank looks to expand it to all of its customers and not just those who are members of the Society.

How will my account with Kent Reliance be affected and what does it mean for my savings or mortgage?

The Society is independent of the Bank. These changes will not affect your Kent Reliance mortgage or savings account in any way. The Bank will continue to provide and administer your accounts as it does today.

For more information about the Bank please visit www.kentreliance.co.uk/.

If you have any questions about your mortgage or savings account then please contact the Bank. Their contact details are available at www.kentreliance.co.uk/contact-us.

Your feedback on the Banks services and how it manages your accounts are important. The Bank values your feedback and you can give feedback at any time by completing a survey here or calling 0800 011 9079.

How will this affect my shares I hold in OSB GROUP PLC?

These changes will not affect the shares you hold in OSB GROUP PLC or dividends payable on them.

For more information about OSB GROUP PLC please visit www.osb.co.uk/.

Will these changes and the winding up of the Society mean I will cease to be a member in the Society?

You will remain a member whilst the Society is in liquidation. At the conclusion of the liquidation you will cease to be a member of the Society.

However, whilst you will no longer receive notice of an Annual General Meeting (AGM), rest assured that:

  • The heritage of the Society will continue through the new Kent Reliance Community Foundation Limited ensuing the continued use of its assets for charitable purposes.
  • Your Kent Reliance mortgage or savings accounts will not be affected in any way. The Bank will continue to provide and administer your accounts as it does today.

What will be the name of the new charity?

The name of the new charity will be Kent Reliance Community Foundation Limited.

Who will run the new charity?

The new charity will be established as a new charitable company limited by guarantee and will be run by its directors.

It will be registered at the Charity Commission, Companies House and with HMRC.

Who will be the directors of the new charity?

The directors of the new charity will initially be the directors of the Society. Once the charity is established then it is anticipated that the directors of the charity will change and they will want to invite other suitably qualified persons including employees of the Bank, Kent Reliance customers and former members of the Society to apply to be directors.

The directors are subject to the legal obligations applying to companies and charities which include having a duty to act in the best interests of the charity and ensure that it is applying its funds only in accordance with its charitable objects.

None of the directors will receive a salary for their work.

The directors of the charity will also be the trustees of the charity for the purpose of the Charities Act 2011.

I have had a look at the Charity Commission website and can’t see the Kent Reliance Community Foundation Limited on the register of charities, why is that?

We have started the process for forming Kent Reliance Community Foundation Limited and registering it at Companies House, the Charity Commission and HMRC. This process takes time but rest assured the assets of the Society won’t be distributed to the new charity until those registrations have been completed.

What will the charitable purposes of the new charity be?

The objects of the new charity are for the public benefit to further any purpose which is exclusively charitable under the law of England and Wales.

Who will decide where the donations go?

It will be for the trustees of the new charity to decide how charitable funds are spent and the trustees will establish a policy for charitable giving.

As previously noted in these frequently answered questions the trustees’ approach to charitable donations is likely to evolve over time. For example:

It is now anticipated that grants will be made direct to beneficiaries rather than through the Kent Community Foundation. This will mean more can be given to the recipients of grants and the charity will undertake the due diligence on grant requests and monitoring of grants made.

The objects of the new charity, as set out in its articles of association, have been amended. This is to simplify them and the priorities and focus of the new charity will be included within its policy for charitable giving rather than its articles of association.

How will the charitable foundation be regulated?

The new charity will be governed by its memorandum and articles of association, the Companies Act 2006, Charities Act 2011 and will be regulated by the Charities Commission.

Were any alternative options considered?

Consideration was given to winding up the Society with its assets being distributed to its members.

However, the distribution to individual members would be very small compared to the benefit to charity. Over 85% of members have consistently indicated through their votes at the AGM that they wish the income of the Society to be used for charitable purposes and a distribution of assets to members was not considered consistent with the Society’s purposes or heritage.

Who will pay the cost of the winding up the Society?

The Bank pays the Society’s costs of the AGM and will pay for the costs of the liquidator of the Society and the costs of the professionals advising the Society on this proposal.

How will I know whether the proposal is approved by members at the AGM?

We publish the result of the AGM on this website.

Will my savings account still be protected by the Financial Services Compensation Scheme?

Kent Reliance Provident Society (The Society) is independent of Kent Reliance, which is a trading name of OneSavings Bank plc (the Bank).

These proposals will not affect Kent Reliance mortgage or savings accounts in any way. The Bank will continue to provide and administer those accounts as it does today. Eligible deposits held by Kent Reliance are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.

For more information you can visit www.kentreliance.co.uk/ or contact the Bank. Their contact details are available at www.kentreliance.co.uk/contact-us.

Is there anyone I can talk to about this?

Yes. For general queries about the Society please contact:

Kent Reliance Provident Society Limited (in Members’ Voluntary Liquidation)

OneSavings Bank
Sunderland
SR43 4AB
0345 122 1177*

members@krps.com

For queries about the liquidation of the Society please contact the joint liquidators:

Philip Heddell and Richard Barker of Ernst & Young LLP of 1 More London Place, London, SE1 2AF, United Kingdom.

* For customer service and training purposes, calls with KRPS may be monitored and/or recorded. Lines are open 8am to 7pm Monday to Thursday, 8am to 6pm Friday and 9am to 2pm Saturday