(1) Part 8 of the Building Societies Act 1986 is amended as follows.

(2) In section 78 (auditor’s report) [Section 78 was amended by S.I. 1995/3233, 2004/3380, 2008/1519 and 2016/649; there are other amendments but none is relevant.] -

(a) for subsection (4) substitute -

"(4) The report must clearly state the opinion of the auditor as to whether the accounts -

(a) give a true and fair view -

(i) in the case of an individual balance sheet, of the state of affairs of the society as at the end of the financial year,

(ii) in the case of an individual income and expenditure account, of the income and expenditure of the society for the financial year, and

(iii) in the case of group accounts, of the state of affairs as at the end of the financial year and the income and expenditure for the financial year of the society and the subsidiary undertakings dealt with in the group accounts, so far as concerns members of the society,

(b) have been properly prepared in accordance with the relevant financial reporting framework, and