Part V Regulation of Friendly Societies’ Business
Preliminary
44 Appointment of actuary by societies with long term business.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45 Valuation of assets and liabilities.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial investigations
46 Annual investigation into condition of certain societies.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Triennial investigations into condition of certain societies.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Margins of solvency
48 Margins of solvency in relation to insurance business of certain societies.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49 Failure to maintain prescribed margin of solvency.
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Criteria of prudent management
50 The criteria of prudent management.
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powers of F101FCA and PRA
Words in s. 51 cross-heading substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 16 (with Sch. 12)
I151 Power to forbid acceptance of new members.
1
Subject to the provisions of this section, if the Commission considers it expedient to do so in the interests of the members or potential members of a friendly society, it may give the society a direction forbidding it to accept any new members.
2
If the Commission proposes to give such a direction, it shall serve on the society a notice stating that it proposes to give a direction.
3
A notice under subsection (2) above shall specify the grounds for the proposed direction.
4
The Commission shall consider any representations made by the society within such period (not being less than one month) from the date on which the society is served with the notice as the Commission may allow and, if the society so requests, shall afford to it an opportunity of being heard by the Commission within that period.
5
The Commission may not give a direction unless all the grounds for giving it are those, or among those, which were specified in the notice served on the society under subsection (2) above.
6
On giving a direction, the Commission shall—
a
serve notice of it on the society, specifying the grounds for making it;
b
publish notice of it in one or more of the London, Edinburgh and Belfast Gazettes and in any such other ways as it considers appropriate; and
c
send a copy of it to the central office.
7
A society which contravenes a direction given to it under this section shall be guilty of an offence and shall be liable—
a
on conviction on indictment, to a fine; and
b
on summary conviction, to a fine not exceeding the statutory maximum.
8
The central office shall keep a copy of a direction given to a friendly society under this section in the public file of the society.
I252 Applications to court.
F911
If the FCA has reason to believe that any of the conditions mentioned in subsection (2) is satisfied, it may, after consulting the PRA if the society is a PRA-authorised person—
a
present a petition to the High Court for the winding up of the society under the applicable winding up legislation;
b
make an application to the High Court for an order under subsection (5).
1A
If the PRA has reason to believe that any of the conditions mentioned in subsection (2) is satisfied in relation to a society which is a PRA-authorised person, it may, after consulting the FCA—
a
present a petition to the High Court for the winding up of the society under the applicable winding up legislation;
b
make an application to the High Court for an order under subsection (5).
2
The conditions referred to in F92subsections (1) and (1A) are—
a
that a friendly society is carrying on activities that are not activities which such a society is permitted by this Act or the 1974 Act to carry on;
b
that the society is not carrying on any activity falling within Schedule 2 to this Act;
F11c
that the society is failing to satisfy any obligation to which it is subject by virtue of any provision of the law of any EEA State other than the United Kingdom which–
i
gives effect to F110the Solvency 2 Directive; or
ii
is otherwise applicable to the insurance activities of the society in that State;
F12d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and a court shall not make an order for the winding up of a society by virtue of this section unless it is satisfied that one or more of those conditions is satisfied.
F933
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F134
A court may not make an order under subsection (5) unless it is satisfied that one or more of the conditions mentioned in subsection (2) are satisfied.
5
An order under this subsection is an order directing the society to modify its business as directed in the order or to take such other steps as may be so directed F14....
6
7
The power to present a petition or to make an application for an order under subsection (5) above is available to the F94FCA and the PRA whether or not either of them has previously presented a petition or made an application for such an order, as the case may be.
8
In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, references to the High Court shall be read as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.
9
In this section “the applicable winding up legislation”, in relation to an incorporated friendly society, has the same meaning as in section 23 above and, in relation to a registered friendly society, means Part V of the M1Insolvency Act 1986 or (where the society’s registered office is in Northern Ireland) Part VI of the M2Insolvency (Northern Ireland) Order 1989.
F1652A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1753. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I354 Supervision of activities of subsidiaries etc.
1
In this section “friendly society group” means an incorporated friendly society, subsidiaries of that society and bodies jointly controlled by it.
2
If it appears to the F87FCA or the PRA that the activities of subsidiaries of an incorporated friendly society or bodies jointly controlled by it are or may become disproportionate to those of the friendly society group as a whole, it may direct the society—
a
to take or refrain from taking steps specified in the direction with a view to securing that the activities in question cease to be or do not become disproportionate; or
b
to take steps so specified with a view to securing—
i
that it ceases to have control or joint control of any subsidiary or jointly controlled body in question; or
ii
that any such subsidiary or jointly controlled body is wound up.
3
If it appears to the F87FCA or the PRA that any activity of a subsidiary of an incorporated friendly society or of a body jointly controlled by such a society is unsuitable for a member of a friendly society group, it may direct the society—
a
to take steps specified in the direction with a view to securing that that activity ceases; or
b
to take steps so specified with a view to securing—
i
that it ceases to have control or joint control of the subsidiary or jointly controlled body; or
ii
that the subsidiary or jointly controlled body is wound up.
4
A direction under this section may specify F18that the society is to comply with it—.
a
immediately on receipt of a final notice in relation to the direction;
b
before the end of such period as may be specified in the direction, beginning with the giving of a final notice in relation to the direction; or
c
on the happening of an event subsequent to the giving of such a notice.
5
A society given a direction under this section must—
a
comply with the direction; or
b
convert itself into a company in accordance with Part VIII of this Act.
F196
The F88FCA or the PRA may by written notice to the society—
a
vary a direction F89issued by it under this section at the request of the society; or
b
revoke a direction F89issued by it under this section.
F856A
The FCA must consult the PRA before issuing a direction under this section to a PRA-authorised person or varying such a direction.
6B
The PRA must consult the FCA before issuing or varying a direction under this section.
F867
If a society requests the FCA or the PRA to notify the society as to whether, in the opinion of that authority, it has complied with a direction issued by that authority, the FCA or the PRA (as the case may be) must comply with the request.
7A
The PRA must send a copy to the FCA of any direction, notice, final notice or notification it issues under this section.
F208
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
a
of a direction under this section;
b
of a notice under subsection (6) above; or
F22ba
of a final notice varying a direction under this section;
c
of a notification under subsection (7) above;
F23. . . in the public file of the society.
F2410
“Final notice" means a final notice given under section 390 of the Financial Services and Markets Act 2000, as applied by section 58A(6) below.
I455 Supervision of group insurance business.
1
This section applies where a friendly society carries on any group insurance business providing benefits for or in respect of a group of persons who are not members of the society.
2
If it appears to the F104FCA or the PRA that the business so carried on is or may become disproportionate to the other activities of the society (including any group insurance business carried on for the provision of benefits for or in respect of persons who are members of the society), it may direct the society to take or refrain from taking steps specified in the direction with a view to securing that the group business in question ceases to be or does not become disproportionate.
3
Subsections (4) to (9) of section 54 above shall apply in relation to a direction under this section as they apply to a direction under that section.
55AF25 Supervision of controllers.
F261
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
In this Act–
“controller”, in relation to a friendly society to which section 37(2) or (3) of this Act applies, means a person who, either alone or with any associate or associates–
a
is entitled to exercise or control the exercise of 10 per cent. or more of the voting power at any general meeting of the society; or
b
is able to exercise a significant influence over the management of the society by virtue of an entitlement to exercise, or to control the exercise of, the voting power at any general meeting of the society;
F27. . ..
F283
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2956. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Covering of risks situated in another member State
F3057. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3157A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F38Notices, hearings and appeals
S. 58A and the cross-heading substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for ss. 58-61 by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 Pt. 1 para 75 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F3258 Rights of appeal.
1
A friendly society which is aggrieved by a decision of the Commission—
a
to refuse to grant authorisation under section 32 above,
b
to impose conditions, or as to the conditions imposed, under section 34 or 36 above,
c
to withdraw authorisation under section 40 or 41 above,
d
to give a direction under section 51 above; or
e
to give a direction to the society, or as to the steps specified in a direction, under section 54 or 55 above,
may appeal against the decision to a tribunal constituted in accordance with section 59 below.
2
Any person in relation to whom the Commission, in deciding to refuse to grant authorisation, to impose conditions or to withdraw authorisation—
a
makes a determination that he is not a fit and proper person to hold or, as the case may be, to remain in an office in the society in question, or
b
imposes a requirement that he be removed from an office in the society,
may appeal against the decision so far as it relates to that determination or requirement.
3
The withdrawal of a society’s authorisation shall not have effect—
a
until the end of the period within which an appeal can be brought against the Commission’s decision to withdraw that authorisation; and
b
if such an appeal is brought, until it is determined or withdrawn.
4
Where the Commission decides to refuse to grant authorisation to a society on an application made in pursuance of a direction under section 39 above, the society’s authorisation shall not expire under subsection (5) of that section—
a
until the end of the period within which an appeal can be brought against the decision not to grant authorisation; and
b
if such an appeal is brought, until it is determined or withdrawn.
5
A direction under section 51, 54 or 55 above shall not have any effect until—
a
the end of the period within which an appeal can be brought against the Commission’s decision to give the direction or as to any steps specified in the direction; and
b
if such an appeal is brought, until it is determined or withdrawn.
6
Subject to any order of the tribunal made under section 59(6) below, an appeal under subsection (1)(b) or (2) above shall not affect the operation, pending the determination of the appeal, of any condition which is the subject of the appeal.
7
Subject to subsection (8) below, no determination of an appeal brought by any person under subsection (2) above shall affect any decision of the Commission on the ground of (or on grounds including) the determination made in relation to that person or, as the case may be, the failure of the society to comply with the requirement imposed in relation to that person.
8
The tribunal may revoke a decision of the Commission to impose a condition which is the subject of an appeal under subsection (2) above in so far as it seeks to prevent the person making the appeal from holding, or continuing to hold, office in the society.
58AF33 Notices, hearings and appeals.
1
If the F80FCA or the PRA proposes—
a
to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or
b
to give a direction in relation to a society under section 90,
it must give the society a warning notice.
2
The warning notice must set out the terms of the direction which the F81FCA or the PRA proposes to give and, in the case of a proposal to give a direction under section 54 or 55, any provisions which the F81FCA or the PRA proposes to include in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).
3
If the F82FCA or the PRA decides—
a
to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or
b
to give a direction in relation to a society under section 90,
it must give the society a decision notice.
4
The decision notice must set out the terms of the direction which the F83FCA or the PRA has decided to give and, in the case of a decision to give a direction under section 54 or 55, any provisions to be included in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).
5
A society to whom a decision notice is given under this section may refer the matter to the F78Upper Tribunal.
6
Part XXVI of the Financial Services and Markets Act 2000 (notices) is to be treated as applying in respect of warning notices and decision notices given under this section as it applies in respect of warning notices and decision notices given under that Act, subject to subsection (8) below.
F797
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
In the application of Part XXVI of that Act in respect of warning notices and decision notices given under this section—
a
section 388(1)(e)(i) (which requires a decision notice to indicate any right given under that Act to refer a decision to the Tribunal) is to be read as if, for the words “this Act", there were substituted “the Friendly Societies Act 1992";
b
section 388(2) (which makes provision for the type of action to which a decision notice may relate if it was preceded by a warning notice) is to be read as if, for the word “Part", there were substituted “section";
c
section 390(4) (which provides for the content of a final notice about an order) is to be read as if—
i
for the words “an order" there were substituted “a direction", and
ii
for the words “the order", in both places where they appear, there were substituted “the direction"; and
d
section 392 (application of sections 393 (third party rights) and 394 (access to F84FCA or PRA material)) is to be read as if—
i
paragraph (a) of that section contained a reference to a warning notice given under subsection (1) above, and
ii
paragraph (b) of that section contained a reference to a decision notice given under subsection (3) above.
F34C159 Determination of appeals.
1
Where an appeal is brought under section 58 above, a tribunal to determine the appeal shall be constituted in accordance with subsection (2) below.
2
The tribunal shall consist of—
C2a
a chairman appointed by the Lord Chancellor or, where the society concerned has its registered office in Scotland, by the Lord Chancellor in consultation with the Lord Advocate; and
b
two other members appointed by the Treasury.
3
The chairman shall be a person who—
a
has a seven year general qualification, within the meaning of the M3Courts and Legal Services Act 1990;
b
is an advocate or solicitor in Scotland of at least seven years’ standing; or
c
is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least seven years’ standing;
and the other two members shall be persons appearing to the Treasury to have experience of accountancy, the business of insurance or the business of friendly societies.
F353A
A person shall not be appointed after the day on which he attains the age of 70 to be the chairman of a tribunal under this section.
4
Subject to subsection (5) below, on any appeal against a decision of the Commission the question for the determination of the tribunal shall be whether, for the reasons adduced by the appellant, the decision was unlawful or not justified by the evidence on which it was based.
5
In the case of an appeal against a decision to give a direction under section 54 or 55 above—
a
the tribunal shall, on the evidence adduced before it, reconsider the decision to give the direction and the steps specified in the direction (according to the extent of the appeal);
b
if the tribunal determines that such a direction should not be given, it shall reverse the decision; and
c
if the tribunal determines that those steps should not be so specified, it may give the Commission such guidance as it thinks fit as to what the appropriate steps might be.
6
The tribunal may, on the application of the friendly society concerned, order that the operation of any condition which is the subject of an appeal by the society be suspended pending the determination of the appeal.
7
The tribunal may confirm or reverse the decision which is the subject of the appeal but shall not have power to vary it except by directing the Commission—
a
in the case of an appeal against a decision to refuse to grant authorisation, to determine conditions to which the grant of authorisation is to be subject;
b
in the case of an appeal against the imposition of conditions or as to the conditions imposed by the decision, to determine conditions or different conditions subject to which the authorisation is to be granted or is to continue, as the case may be;
c
in the case of an appeal against a decision to withdraw authorisation, to determine conditions or different conditions subject to which the authorisation is to continue in force, as the case may be;
d
in the case of an appeal against a decision as to the steps specified in a direction under section 54 or 55 above, to determine, having taken account of any guidance given under subsection (5) above, the steps which are to be so specified.
8
Where by virtue of subsection (7)(d) above the tribunal directs the Commission to determine the steps to be specified in the direction, the society may appeal against the steps so specified.
9
Where by virtue of subsection (7) above the tribunal directs the Commission to determine conditions or different conditions—
a
the Commission shall in accordance with section 34 or 36 above impose such conditions as it thinks fit; and
a
paragraphs 7 and 8 of Schedule 13 to this Act shall apply subject to the modifications made by paragraph 9 of that Schedule;
and the society may appeal to the tribunal against any condition so imposed.
10
On any such appeal the tribunal may confirm or reverse the Commission’s decision with respect to the conditions which are the subject of the appeal or may direct the Commission to determine different conditions; and where by virtue of this subsection the tribunal directs the Commission to determine different conditions, subsection (9) above shall apply as it applies where the tribunal gives such a direction by virtue of subsection (7) above.
11
Where the tribunal reverses a decision of the Commission to refuse to grant authorisation, it shall direct the Commission to grant it; and where the tribunal reverses a decision of the Commission to make the grant of authorisation subject to conditions, it shall direct the Commission to grant it unconditionally.
12
Notice of a tribunal’s determination, together with a statement of its reasons, shall be given to the appellant and to the Commission; and unless the tribunal has directed the Commission to determine conditions or, in any other case, the tribunal directs otherwise, the determination shall come into operation when the notice is given to the appellant.
13
The Treasury may out of money provided by Parliament pay to the persons appointed as members of a tribunal under this section such fees and allowances in respect of expenses as the Treasury may determine and any other expenses incurred for the purposes of this section.
F36C360 Costs, procedure and evidence.
1
A tribunal may give such directions as it thinks fit for the payment of costs or expenses by any party to an appeal.
2
On an appeal under section 58(2) above the friendly society in relation to which the determination was made, or upon which the requirement was imposed, shall be entitled to be heard.
3
The Treasury may make regulations with respect to appeals under section 58 above; and those regulations may in particular make provision—
a
as to the period within which and the manner in which such appeals are to be brought;
b
as to the manner in which such appeals are to be conducted, including provision for any hearing to be held in private;
c
for requiring any person, on tender of the necessary expenses of his attendance, to attend and give evidence or produce documents in his custody or under his control and for authorising the administration of oaths to witnesses;
d
for granting to any person such discovery or inspection of documents or right to further particulars as might be granted by a county court in England and Wales or Northern Ireland or, in Scotland, for granting to any person such recovery or inspection of documents as might be granted by the sheriff;
e
for enabling an appellant to withdraw an appeal or the Commission to withdraw its opposition to an appeal and for the consequences of any such withdrawal;
f
for taxing or otherwise settling any costs or expenses directed to be paid by the tribunal and for the enforcement of any such direction;
g
for enabling any functions in relation to an appeal to be discharged by the chairman of the tribunal; and
h
as to any other matter connected with such appeals.
C44
Regulations under this section with respect to appeals where the friendly society concerned has its registered office in Scotland shall be made by the Lord Advocate.
5
A person who, having been required in accordance with regulations under this section to attend and give evidence, fails without reasonable excuse to attend or give evidence shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.
6
A person who intentionally alters, suppresses, conceals, destroys or refuses to produce any document which he has been required to produce in accordance with regulations under this section, or which he is liable to be so required to produce, shall be liable—
a
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both;
b
on summary conviction, to a fine not exceeding the statutory maximum.
F3761 Further appeals on points of law.
1
An appeal shall lie to the High Court at the instance of the friendly society or other person concerned or of the Commission on any question of law arising from any decision of a tribunal under section 59 above; and if the court is of the opinion that the decision was erroneous in law, it shall remit the matter to the tribunal for re-hearing and determination by it.
2
In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, references to the High Court shall be construed as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.
3
No appeal to the Court of Appeal or to the Court of Appeal in Northern Ireland shall be brought from a decision under subsection (1) above except with the leave of that court or of the court or judge from whose decision the appeal is brought.
4
An appeal shall lie, with the leave of the Court of Session or the House of Lords, from any decision of the Court of Session under this section, and such leave may be given on such terms as to costs, expenses or otherwise as the Court of Session or the House of Lords may determine.
Information
I562 Powers to obtain information and documents etc.
1
This section applies to information, documents or other material, or explanations of matters which relate to—
a
the activities or the plans for future development of a friendly society; or
b
the activities or the plans for future development of a subsidiary of or body jointly controlled by an incorporated friendly society;
and, in relation to the imposition of requirements under this section, “the purposes of its supervisory functions” means the purposes of the discharge by the F103FCA or the PRA of any of its functions under this Act.
2
This section does not authorise any requirement in relation to information, documents or other material to be imposed on a subsidiary of or body jointly controlled by an incorporated friendly society unless that subsidiary or body carries on business in the United Kingdom; but a requirement may be imposed under this section on a friendly society in relation to information, documents or other material in the possession or control of a subsidiary of or body jointly controlled by the society which does not carry on business in the United Kingdom.
3
Subject to subsection (2) above, the F103FCA or the PRA may by notice to a friendly society or to a subsidiary of, or body jointly controlled by, an incorporated friendly society, require the body to which it is addressed—
a
to furnish to it, within a specified period or at a specified time or times, such specified information as the F103FCA or the PRA considers it needs for the purposes of its supervisory functions;
b
to produce to it, at a specified time and place, such specified documents or other material as the F103FCA or the PRA considers it needs for the purposes of its supervisory functions;
c
to provide to it, within a specified period, such explanations of specified matters as the F103FCA or the PRA considers it needs for the purposes of its supervisory functions;
F393A
Subject to subsection (2) above, any person authorised for the purpose by the F103FCA or the PRA (“an authorised officer") may, on producing evidence of his authority, require a friendly society or a subsidiary of, or body jointly controlled by, an incorporated friendly society—
a
to furnish to him forthwith such specified information as the F103FCA or the PRA considers it needs for the purposes of its supervisory functions;
b
to produce to him forthwith such documents or other material as the F103FCA or the PRA considers it needs for those purposes;
c
to provide to him forthwith such explanations of specified matters as the F103FCA or the PRA considers it needs for those purposes.
4
Where by virtue of subsection (3)(a), (b) or (c) above the F40F103FCA or the PRA has power, or by virtue of subsection (3A) above an authorised officer has power, to require the furnishing of any information, the production of any document or material or the provision of any explanation by a friendly society, the F41F102FCA, the PRA or authorised officer shall have the like power as regards any person who—
a
is or has been an officer, employee or agent of the society F42or, in the case of a society to which section 37(2) or (3) above applies, a controller or manager of the society, or
5
Where by virtue of subsection (3)(a), (b) or (c) above the F43F103FCA or the PRA has power, or by virtue of subsection (3A) above an authorised officer has power, to require the furnishing of any information, the production of any document or material or the provision of any explanation by a subsidiary of or body jointly controlled by an incorporated friendly society, the F44F102FCA, the PRA or authorised officer shall have the like power as regards any person who—
a
is or has been an officer, employee or agent of the subsidiary or jointly controlled body, or
F455A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Where any person from whom production of a document or material is required under subsection (4) or (5) above claims a lien on the document or material, the production of it shall be without prejudice to the lien.
7
Nothing in the foregoing provisions of this section shall compel the production—
F76a
by a relevant lawyer of a document or material contained in a privileged communication or, in Scotland, a communication which is protected from disclosure on the ground of confidentiality, made by or to the relevant lawyer in that capacity or the furnishing of information contained in such communication so made;
c
by an independent qualified conveyancer, an executry practitioner or a recognised financial institution of a document or material contained in a communication made by him or to him which is protected from disclosure by virtue of section 22 of the M4Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 or the furnishing of information contained in such a communication.
8
Where, by virtue of subsection (3), F46(3A), (4) or (5) above, the F47F102FCA, the PRA or an authorised officer requires the production by a friendly society or other body or any other person of documents or material, the F48F102FCA, the PRA or authorised officer may—
a
if the documents or material are not produced, require that person to state, to the best of his knowledge and belief, where the documents or material are;
b
if the documents or material are produced, take copies of or extracts from them and require that person or any other person who is or has been an officer, employee or agent of the friendly society or other body, as the case may be, to provide an explanation of the documents or material.
9
Any person who, when required to do so under this section, fails without reasonable excuse to furnish any information or report, to produce any documents or material, or to provide any explanation or make any statement, shall be guilty of an offence and liable on summary conviction—
a
to a fine not exceeding level 5 on the standard scale; and
10
Any friendly society which furnishes any information, provides any explanation or makes any statement which is false or misleading in a material particular, shall be guilty of an offence and liable—
a
on conviction on indictment, to a fine; and
b
on summary conviction to a fine not exceeding the statutory maximum.
11
Any person who knowingly or recklessly furnishes any information, provides any explanation or makes any statement which is false or misleading in a material particular shall be guilty of an offence and liable—
a
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine or both; and
b
on summary conviction, to a fine not exceeding the statutory maximum.
12
In this section—
“specified” means specified in a notice under this section; and
“agent”, in relation to a friendly society or a subsidiary of, or body jointly controlled by, an incorporated friendly society, includes its bankers, accountants, solicitors and auditors and the appropriate actuary F77; and
“relevant lawyer” means a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege or, in Scotland, be protected from disclosure in legal proceedings on grounds of confidentiality of communication.
62AF49 Entry of premises under warrant under section 176 of the Financial Services and Markets Act 2000.
1
A justice of the peace may issue a warrant under section 176 of the Financial Services and Markets Act 2000 if satisfied on information on oath given by or on behalf of the F105FCA or the PRA, an authorised officer within the meaning of section 62(3A) above, or a person appointed as an investigator under section 65(1) below or as an inspector under section 66(1) below, that there are reasonable grounds for believing that the first or second set of conditions below is satisfied.
2
The first set of conditions is that—
a
there are on the premises specified in the warrant information, documents or other material in relation to which a requirement has been imposed on any person under section 62(3), (3A), (4) or (5) above or section 67(3) below, or which it is the duty of any person to produce under section 65(3) or 67(2) below, and
b
that person has failed (wholly or in part) to comply with that requirement or, having been requested to do so, has failed (wholly or in part) to comply with that duty.
3
The second set of conditions is that—
a
there are on the premises specified in the warrant information, documents or other material in relation to which a requirement could be imposed on any person under section 62(3), (3A), (4) or (5) above or section 67(3) below, or which any person could be requested to produce in compliance with the duty imposed on them by section 65(3) or 67(2) below, and
b
if such a requirement were imposed, or such a request made,—
i
it would not be complied with, or
ii
any information, documents or other material to which it related would be removed, tampered with or destroyed.
F51I663 Confidentiality of certain information.
1
Subject to section 64 below, no restricted information which relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person shall be disclosed (otherwise than to an officer or employee of the primary recipient) by—
a
the primary recipient; or
b
any person obtaining the information directly or indirectly from him,
without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.
2
For the purposes of this section—
“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and
“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;
but information shall not be treated as restricted information if it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this section.
3
Any information disclosed to the Commission or the Chief Registrar by an overseas regulatory authority (within the meaning of section 64 below) shall be treated as restricted information for the purposes of this section.
4
A person who discloses information in contravention of this section shall be guilty of an offence and liable—
a
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and
b
on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.
63AF50 Disclosure of information.
1
For the purposes of sections 348 to 353 of the Financial Services and Markets Act 2000 (restrictions on disclosure of confidential information)—
a
information to which this section applies is to be treated as confidential information; and
2
This section applies to information which—
a
relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person;
b
was received by a primary recipient (within the meaning of subsection (1)(b)) for the purposes of, or in the discharge of, any functions of the F99FCA or the PRA under any provision made by or under this Act or the 1974 Act; and
c
is not excluded information by virtue of subsection (4).
3
It is immaterial for the purposes of subsection (2) whether or not the information was received—
a
by virtue of a requirement to provide it imposed by or under this Act;
b
for other purposes as well as purposes mentioned in that subsection.
4
Information is excluded information if—
a
it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purposes for which, disclosure is not precluded by section 348 of the Financial Services and Markets Act 2000 (restrictions on disclosure of confidential information); or
b
it is in the form of a summary or collection of information so framed that it is not possible to ascertain from it information relating to any particular person.
F51I663 Confidentiality of certain information.
1
Subject to section 64 below, no restricted information which relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person shall be disclosed (otherwise than to an officer or employee of the primary recipient) by—
a
the primary recipient; or
b
any person obtaining the information directly or indirectly from him,
without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.
2
For the purposes of this section—
“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and
“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;
but information shall not be treated as restricted information if it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this section.
3
Any information disclosed to the Commission or the Chief Registrar by an overseas regulatory authority (within the meaning of section 64 below) shall be treated as restricted information for the purposes of this section.
4
A person who discloses information in contravention of this section shall be guilty of an offence and liable—
a
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and
b
on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.
F52C5I764 Exceptions from restrictions on disclosure.
1
Information which is restricted information for the purposes of section 63 above may be disclosed—
a
to any person with a view to the institution of, or otherwise for the purposes of, relevant proceedings;
b
if it is information which is or has been available to the public from other sources;
c
in the form of a summary or collection of information so framed as not to enable information related to any particular body or person to be ascertained from it;
d
to the extent that it is information which is provided for the purpose, under any provision of this Act or the 1974 Act, of its being made available to the public in any manner;
e
in pursuance of any Community obligation;
f
for the purpose of facilitating the discharge by the Commission, the Chief Registrar or the central office of any of their functions under this Act or the 1974 Act;
g
to the Treasury, if the disclosure is made for the purpose of facilitating the discharge of any functions of the Treasury under this Act or the 1974 Act or otherwise in the interests of members of friendly societies or in the public interest;
h
for the purpose of enabling or assisting any person appointed investigator under section 65 below or inspector under section 66 below to discharge his duties under that section; or
i
for the purpose of facilitating the discharge by the auditors of a friendly society of their duties to the Commission.
2
For the purposes of subsection (1)(a) above “relevant proceedings” are—
a
any criminal proceedings;
b
any civil proceedings by or at the relation of or against the Commission or the Chief Registrar arising out of the discharge of any of their functions under this Act or the 1974 Act;
c
any disciplinary proceedings relating to—
i
the exercise by a solicitor, auditor, accountant, actuary or valuer of his professional duties;
ii
the discharge by a public servant of his duties;
and in paragraph (c) above “public servant” means an officer or servant of the Crown (including an officer or servant of the Crown in right of Her Majesty’s Government in Northern Ireland) or of any public or other authority designated for the purpose by order made by the Treasury.
3
Nothing in section 63 above prohibits the disclosure of information to the Secretary of State or the Department of Economic Development in Northern Ireland in circumstances where it is desirable or expedient—
a
that the information should be disclosed in the interests of members of a friendly society or in the public interest; or
b
it is desirable or expedient that the information should be disclosed for the purpose of facilitating the discharge—
i
nor does that section prohibit further disclosure of the information by the Secretary of State or the Department with the consent of the Commission.
F533A
Nothing in section 63 above prohibits the disclosure of information to the Treasury in circumstances where it is desirable or expedient that the information should be disclosed for the purpose of facilitating the discharge by the Treasury of any functions of theirs F54under the enactments relating to insurance companies, under the Financial Services Act 1986 or under Part III or Part VII of the Companies Act 1989 nor does that section prohibit further disclosure of the information by the Treasury with the consent of the Commission.
4
Nothing in section 63 above prohibits the disclosure of information to an authority mentioned in subsection (5) below (a “relevant authority") in circumstances where, in the opinion of the Commission, it is desirable or expedient that the information should be disclosed—
a
in the interests of members of a friendly society or in the public interest; or
b
with a view to facilitating the discharge by the authority, of any functions of the authority (including functions in relation to proceedings) mentioned in that subsection (“relevant functions”);
nor does that section prohibit further disclosure of the information, with the consent of the Commission.
5
The relevant authorities mentioned in subsection (4) above and the relevant functions in relation to each such authority, are as follows—
Authority | Functions |
|---|---|
F551. An inspector appointed under Part XIV of the Companies Act 1985, Part XV of the Companies (Northern Ireland) Order 1986 or section 94 or 177 of the Financial Services Act 1986. | Functions under that Part or that section or Article. |
F552. A person authorised to exercise powers under section 44 of the Insurance Companies Act 1982, section 447 of the Companies Act 1985, section 106 of the Financial Services Act 1986 or section 84 of the Companies Act 1989 or Article 440 of the Companies (Northern Ireland) Order 1986. | Functions under that section or Article. |
F553.The Policyholders Protection Board. | Functions under the Policyholders Protection Act 1975. |
F554.A designated agency within the meaning of the Financial Services Act 1986. | Functions under that Act or Part VII of the Companies Act 1989. |
F555.A transferee body or the competent authority within the meaning of the Financial Services Act 1986. | Functions under that Act. |
F556.A body administering a scheme under section 54 of the Financial Services Act 1986. | Functions under the scheme. |
F557.A recognised self-regulating organisation, recognised professional body, recognised investment exchange, recognised clearing house, or recognised self-regulating organisation for friendly societies (within the meaning of the Financial Services Act 1986). | Functions in its capacity as an organisation, body, exchange or clearing house recognised under that Act. |
F558.The Bank of England. | F56Any of its functions |
F57The Financial Services Authority. | Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989. |
F559. A body established by order under section 46 of the Companies Act 1989. | Functions under Part II of that Act. |
F5810. A recognised supervisory or qualifying body (within the meaning of Part II of the Companies Act 1989 or Part III of the Companies (Northern Ireland) Order 1990). . | Functions as such a body or functions in relation to disciplinary proceedings against auditors. |
F5511.The Industrial Assurance Commissioner for Northern Ireland. | Functions under the enactments relating to industrial assurance. |
F59. . .. | F59. . .. |
F5513.The Official Receiver or the Official Receiver for Northern Ireland. | Functions under the enactments relating to insolvency. |
F60 14A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986 or Article 350 of the Insolvency (Northern Ireland) Order 1989). | Functions in its capacity as such a body under that Act or that Order or functions in relation to disciplinary proceedings against insolvency practitioners (within the meaning of that Act or that Order). |
F5515.The Building Societies Commission. | Functions under the Building Societies Act 1986. |
F61The Occupational Pensions Regulatory Authority. | Functions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them. |
F5516.The Director-General of Fair Trading. | Functions under the Financial Services Act 1986. |
F6217An actuary exercising functions under this Act. | Those functions. |
18The Institute of Actuaries or the Faculty of Actuaries. | Supervisory functions in relation to actuaries exercising functions under this Act. |
6
The Commission, with the consent of the Treasury, may by order—
a
amend the Table in subsection (5) above so as to—
i
add any public or other authority to the Table and specify the relevant functions of that authority;
ii
remove any authority from the Table; or
iii
add functions to, or remove functions from, those which are relevant functions in relation to an authority specified in the Table;
b
restrict the circumstances in which information may, by virtue of subsection (4) above, be disclosed or further disclosed; and
c
impose conditions subject to which the information may be disclosed or further disclosed.
7
Nothing in section 63 above prohibits the disclosure to an overseas regulatory authority of information for the purpose of assisting that authority in the discharge of its functions.
F637A
In the case of restricted information which relates to the business or other affairs of a friendly society to which section 37(2) or (3) above applies, no disclosure may be made by virtue of subsection (1), (3), (4) or (7) above unless the disclosure appears to be in accordance with–
a
Article 16 of the third general insurance Directive; or
b
Article 15 of the third life Directive.
8
In this section—
“authority” includes any body (corporate or unincorporate) which is charged with the regulation of the carrying on of any description of financial or insurance business or the practice of any profession to which the carrying on of such business is incidental;
“overseas regulatory authority” means any government department or public or other authority in a country or territory outside the United Kingdom which is charged under the law of that country or territory with the regulation of companies, insurance companies, financial services, banking or any business corresponding to the business which may be carried on by friendly societies (or their subsidiaries); and
“regulation”, in relation to any public or other authority, means regulation in the public interest or for the protection of private interests.
Inspections etc.
I865 Investigations on behalf of F100FCA or PRA.
1
If it appears to the F106FCA or the PRA desirable to do so for the purpose of its supervisory functions in relation to a friendly society, the F106FCA or the PRA may appoint one or more competent persons to investigate and report to it on the state and conduct of the activities of the society, or any particular aspect of those activities.
F641A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
If a person appointed under subsection (1) F65. . . above thinks it necessary for the purposes of his investigation, he may also investigate the activities of any body corporate which is or has at any relevant time been a subsidiary of, or jointly controlled by, the society under investigation.
3
It shall be the duty of every person who is or has been an officer, employee and agent of a friendly society or other body which is under investigation—
a
to produce to the persons appointed under subsection (1) F65. . . above all records, books and papers relating to the body concerned which are in his custody or power; and
b
to attend before those persons when required to do so;
c
to answer any question which is put to him by those persons with respect to any friendly society or other body which is under investigation,
and otherwise to give to those persons all assistance in connection with the investigation which he is reasonably able to give.
F643A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
A person who, without reasonable excuse—
a
fails to produce any records, books or papers which it is his duty to produce under subsection (3)(a) above; or
b
fails to comply with his duty under subsection (3)(b) or (c) above;
shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
5
A person who is or has been an officer, employee or agent of a friendly society or other body and who knowingly or recklessly furnishes to any person appointed under subsection (1) F65. . . above any information which is false or misleading in a material particular, shall be guilty of an offence and liable—
a
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and
b
on summary conviction, to a fine not exceeding the statutory maximum.
F665A
In relation to a friendly society to which section 37(2) or (3) above applies, any reference in subsection (3) or (5) above to a person who is or has been an officer shall be read as including a reference to a person who is or has been a controller or manager.
6
In this section—
“agent”, in relation to a friendly society or other body whose activities are under investigation, includes its bankers, accountants, solicitors and auditors and the appropriate actuary;
“the purposes of its supervisory functions”, in relation to the F106FCA or the PRA, has the same meaning as in section 62 above.
I966 Inspections and special meetings: general.
1
In the circumstances mentioned in subsection (2) below, the F107FCA or the PRA may—
a
appoint one or more competent inspectors to investigate and report on the affairs of a friendly society; or
b
call a special meeting of a friendly society to consider its affairs; or
c
appoint (whether on the same or on different occasions) an inspector or inspectors and call a special meeting for those purposes;
and, in the circumstances mentioned in subsection (3) below, the investigation or consideration may extend to the affairs of any body corporate which is or at any relevant time has been a subsidiary of or jointly controlled by the society concerned.
2
The powers conferred by subsection (1) above may be exercised either—
a
on the application of the requisite number of members of the society concerned; or
b
where the is of the opinion that an investigation should be held into the affairs of the society, or that the affairs of the society call for consideration by a meeting of its members;
but paragraph (a) above shall not apply to a registered society with branches (regardless of the number of members) except with the consent of the central body of that society.
3
The powers conferred by subsection (1) above may be exercised so as to extend the investigation or consideration to the affairs of a body which is or has been a subsidiary of or jointly controlled by a friendly society either—
a
where an application referred to in subsection (2)(a) above so requests; or
b
where the F107FCA or the PRA is of the opinion that it is necessary for the purposes of the investigation into or consideration of the affairs of the friendly society that the affairs of the subsidiary or other body should also be investigated or considered.
4
Where the inspectors are of the opinion mentioned in subsection (3)(b) above in relation to a subsidiary of or a body jointly controlled by the society under investigation they may, with the consent of the , extend their investigation to the affairs of the subsidiary or other body and make their report accordingly.
5
For the purposes of subsections (1) to (3) above the requisite number of members—
a
in the case of a friendly society having more than 1,000 members, is 100; and
b
in the case of any other friendly society, is one-tenth of the whole number of members of the society.
6
Where an application is made as mentioned in subsection (2) above—
a
the application shall be supported by such evidence as the F107FCA or the PRA may require for the purpose of showing that the applicants have good reason for making the application and are not actuated by malicious, frivolous, vexatious or scandalous motives;
b
such notice of the application shall be given to the society concerned and, if the application extends to the affairs of a subsidiary of or body jointly controlled by that society, to that subsidiary or other body, as the F107FCA or the PRA may direct;
c
the F107FCA or the PRA may require the applicants to give security for payment of the costs of the investigation or meeting before the inspector is appointed or the meeting is called subject, in the case of the costs of an investigation, to an amount not exceeding the corresponding Companies Act limit; and
d
as regards the expenses of or incidental to the investigation or meeting—
i
in the case of an investigation (in whichever way instituted), the expenses shall be defrayed in the first instance by the F107FCA or the PRA but without prejudice to its rights to contribution under section 67(10) below;
ii
in the case of a meeting, the expenses shall be defrayed by the applicants, or out of the funds of the society, or by the members or officers or former members or officers of the society, in such proportions as the F107FCA or the PRA may direct.
7
Before exercising its powers under subsection (1) above in a case falling within subsection (2)(b) above, the F107FCA or the PRA shall inform the society of the action which it proposes to take and the grounds for that action, and the society shall, within 14 days of receiving the information, be entitled to give the F107FCA or the PRA an explanatory statement in writing by way of a reply.
8
Where the F107FCA or the PRA proposes to exercise its powers under subsection (1) above in a case falling within subsection (3)(b) above, subsection (7) above shall apply in relation to the subsidiary or jointly controlled body as it applies in relation to the society.
9
Inspectors appointed under this section shall, in addition to having the powers which are necessary for or incidental to the discharge of their functions under this section, have the power specified in section 67 below.
10
Where a special meeting is called under this section—
a
the F107FCA or the PRA may—
i
direct at what time and place the meeting is to be held and what matters are to be discussed and determined at the meeting; and
ii
direct which members may attend and vote at the meeting,
and may give such other directions as it thinks fit with respect to the call, holding and conduct of the meeting;
b
the F107FCA or the PRA may appoint a person to be chairman at the meeting or, in default of such an appointment, the meeting may appoint its own chairman;
c
the meeting shall have all the powers of a meeting called according to the rules of the society;
and the provisions of this subsection and any direction given under it shall have effect notwithstanding anything in the rules of the society.
11
I1067 Inspections: supplementary provision.
1
In this section—
“the body under investigation” means—
- i
the friendly society whose affairs are the subject of the investigation, or
- ii
the friendly society, and each subsidiary of or body jointly controlled by the society, whose affairs are so subject,
as the case may be;
- i
“the inspectors” means the person appointed by the F108FCA or the PRA under section 66 above to conduct the investigation;
“the investigation” means the investigation under section 66 above which the inspectors have been appointed to hold;
and references to officers, employees or agents include past, as well as present, officers, employees or agents; and “agents”, in relation to a friendly society or any subsidiary of or body jointly controlled by an incorporated friendly society, includes its bankers, accountants, solicitors and auditors and the appropriate actuary.
2
When the inspectors have been appointed, it is the duty of all officers, employees and agents of the body under investigation—
a
to produce to the inspectors all documents and material of or relating to the body under investigation which are in their custody or power;
b
to attend before the inspectors when required to do so; and
c
otherwise to give the inspectors all assistance in connection with the investigation which they are reasonably able to give.
3
If the inspectors consider that a person other than an officer, employee or agent of the body under investigation is or may be in possession of information concerning its affairs, they may require that person to produce to them any documents or material in his custody or power relating to the body under investigation, to attend before them and otherwise to give them all assistance in connection with the investigation which he is reasonably able to give; and it is that person’s duty to comply with the requirement.
4
The inspectors may examine on oath the officers, employees and agents of the body under investigation, and any such person as is mentioned in subsection (3) above, in relation to the affairs of the body under investigation, and may administer an oath accordingly.
5
An answer given by a person to a question put to him under the foregoing provisions of this section may be used in evidence against him.
F675A
However, in criminal proceedings in which that person is charged with an offence to which this subsection applies—
a
no evidence relating to the statement may be adduced, and
b
no question relating to it may be asked,
by or on behalf of the prosecution, unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person.
5B
Subsection (5A) above applies to any offence other than—
a
an offence under section 2 or 5 of the M10Perjury Act 1911 (false statements made on oath otherwise than in judicial proceedings or made otherwise than on oath);
b
an offence under section 44(1) or (2) of the M11Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made on oath or otherwise than on oath); or
c
an offence under Article 7 or 10 of the Perjury (Northern Ireland) Order 1979 (false statements made on oath otherwise than in judicial proceedings or made otherwise than on oath).
6
If an officer, employee or agent of the body under investigation or any such person as is mentioned in subsection (3) above—
a
refuses to produce any document or material which it is his duty under this section to produce; or
b
refuses to attend before the inspectors when required to do so; or
c
refuses to answer any question put to him by the inspectors with respect to the affairs of the body under investigation,
the inspectors may certify the refusal in writing to the High Court; and the court may thereupon enquire into the case and, after hearing any witnesses who may be produced against or on behalf of the alleged offender and after hearing any statement which may be offered in defence, may punish the offender in like manner as if he had been guilty of contempt of the court.
7
The inspectors may, and if so directed by the F108FCA or the PRA shall, make interim reports to the F108FCA or the PRA, but they may at any time in the course of the investigation, without making an interim report, inform the F108FCA or the PRA of matters coming to their knowledge as a result of the investigation tending to show that an offence has been committed.
8
The F108FCA or the PRA may, if it thinks fit—
a
send a copy of any report made by the inspectors to the body whose affairs are or were the subject of the investigation;
b
furnish a copy of any such report on request F68. . . to—
i
any member of the body whose affairs are or were the subject of the investigation;
ii
the auditors of that body;
iii
any person whose conduct is referred to in the report;
iv
any other person whose financial interests appear to the F108FCA or the PRA to be affected by matters dealt with in the report, whether as creditor or otherwise; and
c
cause the report to be printed and published.
F698A
The F108FCA or the PRA may charge a reasonable fee for furnishing to any person a copy of a report under subsection (8)(b) above.
9
A copy of a report of inspectors appointed under section 66 above to hold an investigation under that section, certified by the F108FCA or the PRA to be a true copy, is admissible in any legal proceedings as evidence of the opinion of the inspectors in relation to any matter contained in the report; and a document purporting to be such a certificate shall be received in evidence and be deemed to be such a certificate, unless the contrary is proved.
10
The F108FCA or the PRA shall be entitled to be repaid the expenses of the investigation defrayed by it under section 66(6)(d) above as provided in the following paragraph, that is to say—
a
by the applicants for the investigation, to such extent (if any) as the F108FCA or the PRA may direct;
b
by any body whose affairs were the subject of the investigation, to such extent (if any) as the F108FCA or the PRA may direct;
c
by any person convicted of an offence in proceedings instituted as a result of the investigation, to such extent (if any) as the court by or before which he was convicted may order;
and a person liable under any one of paragraphs (a) to (c) above is entitled to contribution from any other person liable under the same paragraph, according to the amount of their respective liabilities under it.
F7010A
In relation to a friendly society to which section 37(2) or (3) above applies–
a
any reference in subsection (1), (2) or (4) above to officers shall be read as including a reference to controllers or managers; and
b
any reference in subsection (3) or (6) above to an officer shall be read as including a reference to a controller or manager.
11
In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, any reference to the High Court shall be read as a reference to the Court of Session or, as the case may be, to the High Court in Northern Ireland.
Cross heading inserted (1.9.1994) by S.I. 1994/1984 reg. 9