A self-regulating organisation for friendly societies may apply to F2the Commission for an order declaring it to be a recognised self-regulating organisation for friendly societies for the purposes of this Schedule.

At any time after receiving an application and before determining it F2the Commission may require the applicant to furnish additional information.

The directions and requirements given or imposed under sub-paragraphs (2) and (3) above may differ as between different applications.

Any information to be furnished to F2the Commission under this paragraph shall, if F3the Commission so requires, be in such form or verified in such manner as F3the Commission may specify.

Every application shall be accompanied by a copy of the applicant’s rules and of any guidance issued by the applicant which is intended to have continuing effect and is issued in writing or other legible form.

If, on an application duly made in accordance with paragraph 2 above and after being furnished with all such information as F4the Commission may require under that paragraph, it appears to F5the Commission from that information and having regard to any other information in F6the Commission’s possession that the requirements mentioned in paragraph 4 below are satisfied as respects that organisation, F4the Commission may, with the consent of the Secretary of State and subject to sub-paragraph (2) below, make F6a recognition order in respect of the organisation declaring the applicant to be a recognised self-regulating organisation for friendly societies

Where F5the Commission proposes to grant an application for a recognition order F4the Commission shall send to the Secretary of State a copy of the application together with a copy of the rules and any guidance accompanying the application and the Secretary of State shall not consent to the making of the recognition order unless he is satisfied that the rules and guidance of which copies have been sent to him under this sub-paragraph F7, together with any statements of principle, rules, regulations or codes of practice to which members of the organisation would be subject by virtue of this Schedule, do not have, and are not intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition or, if they have or are intended or likely to have that effect to any significant extent, that the effect is not greater than is necessary for the protection of investors.

Section 122 of this Act shall apply in relation to the decision whether to consent to the making of a recognition order under this paragraph as it applies to the decisions mentioned in subsection (1) of that section.

Subsections (1) and (2) of section 128 of this Act shall apply for the purposes of this paragraph as if the powers there mentioned included the power of refusing consent to the making of a recognition order under this paragraph and subsection (5) of that section shall apply for that purpose as if the reference to Chapter XIV of Part I included a reference to this paragraph.

F5The Commission may refuse to make a recognition order in respect of an organisation if F4the Commission considers that its recognition is unnecessary having regard to the existence of one or more other organisations which are concerned with such investment business as is mentioned in section 23 of this Act and which have been or are likely to be recognised under this paragraph.

Where F5the Commission refuses an application for a recognition order F4the Commission shall give the applicant a written notice to that effect specifying a requirement which in the opinion of F5the Commission is not satisfied, stating that the application is refused on the ground mentioned in sub-paragraph (5) above or stating that the Secretary of State has refused to consent to the making of the order.

A recognition order shall state the date on which it takes effect.

The requirements referred to in paragraph 3 above are that mentioned in sub-paragraph (2) below and those set out in paragraphs 2 to 7 of Schedule 2 to this Act as modified in sub-paragraphs (3) to (5) below.

The rules of the organisation must take proper account of F8Parts V and VIII of the Friendly Societies Act 1992.

References in paragraphs 2, 3, 4 and 6 of Schedule 2 to members are to members who are regulated friendly societies.

In paragraph 4 of that Schedule for the reference to Chapter V of Part I of this Act there shall be substituted references to paragraphs 14 to F1222D below.