(1)If, with respect to any building society for which an authorisation is in force, the Commission considers it expedient to do so in the interests of persons who may invest by way of shares in or deposits with the society, the Commission may give the society a direction under this section.
(2)A direction given to a building society under this section may do all or any of the following—
(a)prohibit the issue by the society of advertisements of all descriptions;
(b)prohibit the issue by the society of advertisements of any specified description;
(c)require the society to modify advertisements of a specified description in a specified manner;
(d)prohibit the issue by the society of any advertisements which are, or are substantially, repetitions of a specified advertisement;
(e)require the society to take all practicable steps to withdraw any specified advertisement, or any specified description of advertisement, which is on display in any place;
and a direction under this section shall be in writing.
(3)Not less than seven days before giving a direction under this section the Commission shall give the society and, subject to subsection (9) below, every director and the chief executive of the society notice that it proposes to give the direction and stating the grounds for the proposed direction.
(4)In any case where—
(a)the Commission has given a society notice under subsection (3) above, and
(b)within the period of seven days beginning with the date on which the notice was given, representations (whether made in writing or orally) are made to the Commission by the society,
the Commission shall take those representations into account in deciding whether or not to proceed to give the direction.
(5)On giving a direction under this section the Commission shall give the society and, subject to subsection (9) below, every director and the chief executive of the society, notice of the direction, stating also the grounds for giving it.
(6)The Commission may not give a direction under this section on grounds other than those stated, or grounds included in those stated, in the notice under subsection (3) above.
(7)A direction under this section—
(a)may be revoked or varied by a further direction under this section; and
(b)shall be revoked by notice to the society.
(8)If a building society fails to comply with a direction under this section, then—
(a)the society shall be liable on conviction on indictment or on summary conviction to a fine not exceeding, on summary conviction, the statutory maximum; and
(b)any officer of the society who is also guilty of the offence shall be liable—
(i)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and
(ii)on summary conviction, to a fine not exceeding the statutory maximum.
(9)Where any provision of this section requires notice of a direction under it to be given to every director of a building society that requirement is satisfied by giving notice to each director whose appointment has been officially notified and the non-receipt of a notice of the direction by a director or the chief executive does not affect the validity of the direction.
(10)In this section—
“advertisement” includes every form of advertisement, [F1whether–
(a)documentary,
(b)by way of sound broadcasting or television or by inclusion in any programme service (within the meaning of the Broadcasting Act 1990) other than a sound or television broadcasting service, or
(c)by any pictorial means not falling within paragraph (a) or (b) above;
and references] to the issue of advertisements shall be construed accordingly; and
“specified” means specified in a direction under this section.
Textual Amendments
F1Words substituted by Broadcasting Act 1990 (c. 42, SIF 96), s. 203(1), Sch. 20 para. 44
Modifications etc. (not altering text)
C1S. 50(7)(8) applied by S.I. 1986/2168, art. 10(2)(b)