Agree to assign windfalls to charity?

suzyp1982

Can someone simply tell me what I am agreeing to? 
(I'm transfering a junior ISA to Skipton BS for better rates - so just want to know what I'm signing) 
Thanks 

eskbanker

Many years ago, there was a trend for building societies to demutualise and become publicly-traded banks, which often resulted in substantial payouts to their members, which in turn triggered a plethora of people opening accounts with remaining building societies specifically in the hope of benefitting from a future windfall, a practice generally referred to as carpetbagging.

To discourage this behaviour, building societies introduced a clause in their Ts & Cs that committed savers to donate such windfalls to charity, so that's presumably what you're referring to - it doesn't affect the conduct and performance of the accounts you're opening but simply means that if, hypothetically, Skipton were to demutualise in future, you wouldn't benefit from a one-off bonus.

suzyp1982

eskbanker said:

Many years ago, there was a trend for building societies to demutualise and become publicly-traded banks, which often resulted in substantial payouts to their members, which in turn triggered a plethora of people opening accounts with remaining building societies specifically in the hope of benefitting from a future windfall, a practice generally referred to as carpetbagging.

To discourage this behaviour, building societies introduced a clause in their Ts & Cs that committed savers to donate such windfalls to charity, so that's presumably what you're referring to - it doesn't affect the conduct and performance of the accounts you're opening but simply means that if, hypothetically, Skipton were to demutualise in future, you wouldn't benefit from a one-off bonus.

Perfect thank you