Financial Services Act 1986 (Repealed)

10(1)The powers conferred by sub-paragraph (2) below shall be exercisable by the Secretary of State if at any time it appears to him that—

(a)any rules made or guidance issued by a recognised self-regulating organisation for friendly societies;

(b)any practices of any such organisation; or

(c)any practices of persons who are members of, or otherwise subject to the rules made by, any such organisation, [F1together with any statements of principle, rules, regulations or codes of practice to which members of the organisation are subject by virtue of this Schedule,]

have, or are intended or likely to have, to a significant extent the effect of restricting, distorting or preventing competition and that that effect is greater than is necessary for the protection of investors.

(2)The powers exercisable under this sub-paragraph are to direct [F2the Commission]—

(a)to revoke the recognition order of the organisation;

(b)to direct the organisation to take specified steps for the purpose of securing that [F3its rules, or the], guidance or practices in question do not have the effect mentioned in sub-paragraph (1) above;

(c)to make alterations in [F4its rules] for that purpose;

and subsections (2) to (5), (7) and (9) of section 11 of this Act, as applied by sub-paragraph (2) of paragraph 5 above, shall have effect in relation to the revocation of a recognition order by virtue of a direction under this sub-paragraph as they have effect in relation to the revocation of such an order under sub-paragraph (1) of that paragraph.

(3)The practices referred to in paragraph (b) of sub-paragraph (1) above are practices of the organisation in its capacity as such; . . . F5

[F6(3A)The practices referred to in paragraph (c) of sub-paragraph (1) above are practices in relation to business in respect of which the persons in question are subject to—

(a)the rules of the organisation, or

(b)statements of principle, rules, regulations or codes of practice to which its members are subject by virtue of this Schedule,

and which are required or contemplated by the rules of the organisation or by those statements, rules, regulations or codes, or by guidance issued by the organisation, or which are otherwise attributable to the conduct of the organisation as such.]

(4)Subsections (3) to (8) of section 122 of this Act shall apply for the purposes of this paragraph as if—

(a)the reference to a notice in subsection (3) included a notice received under paragraph 8(7) above or 33(4) below;

(b)the references to rules and guidance in subsection (4) included such rules and guidance as are mentioned in sub-paragraph (1) above;

(c)the reference to practices in subsection (6) included such practices as are mentioned in sub-paragraph (1) above; and

(d)the reference to the Secretary of State’s powers in subsection (7) included his powers under sub-paragraph (2) above.

(6)Section 128 of this Act shall apply for the purposes of this paragraph as if—

(a)the powers referred to in subsection (1) of that section included the powers conferred by sub-paragraph (2)(b) and (c) above;

(b)the references to Chapter XIV of Part I included references to this paragraph; and

(c)the reference to a recognised self-regulating organisation included a reference to a recognised self-regulating organisation for friendly societies.

Textual Amendments

F2Words in Sch. 11 substituted (1.2.1993 for specified purposes and 1.1.1994 for all remaining purposes) by Friendly Societies Act 1992 (c. 40), s. 98, Sch. 18 Pt. II para. 10(1) (with ss. 7(5), 93(4)); S.I. 1993/16, art. 2, Sch.4; S.I. 1993/2213, art. 2(1), Sch.5.

Modifications etc. (not altering text)

C1Sch. 11 para. 10: certain functions conferred by provisions contained in paras. 2–25 and 38 of Schedule 11 transferred as mentioned in S.I. 1990/354, art. 5(2)