(1)The Commission may, subject to subsection (4) below, revoke a building society’s authorisation if—
(a)it appears to the Commission that at no time during a financial year of the society which began and ended during the currency of the authorisation did the society raise funds or accept deposits of money in pursuance of the authorisation;
(b)it appears to the Commission that a period of six months has elapsed since the end of a financial year of the society without the society’s having sent it to the annual accounts for that year as required by section 81(2);
(c)the Commission is satisfied that, where the society’s authorisation is subject to conditions, a condition has not been complied with by the society; or
(d)the Commission considers it expedient to do so in order to protect the investments of shareholders or depositors.
[F1(1A)The Commission may, subject to subsection (4) below, revoke a building society’s authorisation if—
(a)it appears to the Commission that the society’s principal place of business is or may be outside the United Kingdom;
(b)it appears to the Commission that the society has carried on in the United Kingdom or elsewhere a listed activity (other than the acceptance of deposits or other repayable funds from the public) without having given prior notice to the Commission of its intention to do so;
(c)the Commission is informed by The Securities and Investments Board, or a connected UK authority having regulatory functions in relation to the provision of financial services, that the society—
(i)has contravened any provision of the Financial Services Act 1986 or any rules or regulations made under it;
(ii)in purported compliance with any such provision, has furnished that Board or authority with false, misleading or inaccurate information;
(iii)has contravened any prohibition or requirement imposed under that Act; or
(iv)has failed to comply with any statement of principle issued under that Act;
(d)the Commission is informed by the Director General of Fair Trading that the society, or any of the society’s employees, agents or associates (whether past or present), has done any of the things specified in paragraphs (a) to (d) of section 25(2) of the Consumer Credit Act 1974;
(e)it appears to the Commission that the society has failed to comply with any obligation imposed on it by the Banking Coordination (Second Council Directive) Regulations 1992; or
(f)the Commission is informed by a supervisory authority in another member State that the society has failed to comply with any obligation imposed on it by or under any rule of law in force in that State for purposes connected with the implementation of the Second Council Directive.]
(2)Section 45 has effect for the purposes of any determination whether or not it is expedient to exercise the power conferred by subsection (1)(d) above.
(3)The Commission shall revoke a building society’s authorisation if—
(a)the society has requested it to revoke its authorisation;
(b)the society has requestedthe central office to cancel its registration;
(c)the society has failed, when directed to do so under section 41, to make an application for the renewal of its authorisation within the period allowed under that section;
(d)the society has, under sections 93 or 94 amalgamated with or transferred all its engagements to another building society; or
(e)the requisite initial step has been taken to wind up or dissolve the society.
(4)The Commission shall not revoke a society’s authorisation under [F2subsection (1) or (1A)] above except in accordance with the provisions of Part IV of Schedule 3 to this Act; and the other provisions of that Part shall also have effect in relation to revocation under this section or the imposition of conditions under section 42 instead of revocation under this section.
(5)Where a society’s authorisation is revoked under [F3subsection (1), (1A) or (3)] above the provisions of subsections (6), (7) and (8) below shall have effect.
(6)Subject to subsection (7) below, any obligation to make a payment to the society which, by virtue of section 9(1), the society is prohibited from accepting shall be wholly rescinded.
(7)If, when a society’s authorisation is revoked, a member is under an obligation to make payments to the society which represent instalments of the amount due by way of subscription for a share in the society and which, by virtue of section 9(1) the society is prohibited from accepting, the obligation shall (subject to anything in the rules of the society or any agreement between the society and the member) be suspended in respect of each instalment for the period during which no authorisation is in force; and accordingly, if reauthorisation is granted, the sum due shall again become payable by instalments.
(8)It shall be the duty of the society to make reasonable arrangements for using the funds of the society to meet applications by depositors with or holders of shares in the society (being applications made in accordance with the rules of the society) for repayment of the money deposited or subscribed by them.
(9)Where a society’s authorisation is revoked under this section, the Commission shall inform the central office of the fact and the date on which the revocation takes effect and the central office shall record that date in the public file of the society.
[F4(9A)The rules and prohibitions referred to in subsection (1A)(c) above include the rules of any recognised self-regulating organisation of which the society is a member and any prohibition imposed by virtue of those rules; and in subsection (1A)(d) above associate’ has the same meaning as in section 25(2) of the Consumer Credit Act 1974.]
(10)In this section “the requisite initial step", with reference to the winding up or dissolution of a building society, means the following—
(i)in the case of a winding up by the court, the making of the winding-up order;
(ii)in the case of a voluntary winding up, the passing of the resolution for voluntary winding up;
(iii)in the case of dissolution by consent of the members, the execution of the instrument of dissolution.
Textual Amendments
F1S. 43(1A) inserted (1. 1. 1993) by S.I. 1992/3218, reg.71(1)
F2Words in s. 43(4) substituted (1. 1. 1993) by S.I. 1992/3218, reg. 71(2)
F3Words in s. 43(5) substituted (1. 1. 1993) by S.I. 1992/3218, reg. 71(3)
F4S. 43(9A) inserted (1. 1. 1993) by S.I. 1992/3218, reg. 71(4)
Modifications etc. (not altering text)
C1S. 43(6)(7) applied by S.I. 1986/2168, art. 10(1)(c)(i)(5)(c)(i)