Part II Incorporated Friendly Societies

Powers of incorporated friendly societies

14 Investment of funds.

1

An incorporated friendly society may invest its funds—

a

in the purchase of land, or in the erection of offices or other buildings thereon;

b

upon any other security expressly directed by the rules of the society, other than personal security (but without prejudice to any provision of this Act relating to loans); or

c

in any other investment of a kind which trustees are for the time being by law authorised to make.

2

An incorporated friendly society which falls within subsection (3) F1. . . below may also invest the funds of the society in any other manner authorised by its constitution.

3

An incorporated friendly society falls within this subsection if—

a

it is a society to which F2rules in respect of margins of solvency, made by the F8appropriate authority under Part 9A of the Financial Services and Markets Act 2000, apply and

b

it maintains the margin of solvency which it is required to maintain by virtue of F3such rules.

F44

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5

Once a society falls within subsection (3) F1. . . above, it shall be treated as continuing to do so for the purposes of subsection (2) above unless the F9appropriate authority serves a notice under subsection (6) below on it.

6

Where it appears to the F10appropriate authority that an incorporated friendly society has ceased to fall within subsection (3) F1. . . above, it shall serve on the society a notice stating that fact.

7

The powers of investment of a society on which a notice is served under subsection (6) above shall accordingly, until the notice is revoked under subsection (10) below, be limited to investment falling within subsection (1) above.

8

A notice under subsection (6) above may direct a society to dispose of an investment which it could not have acquired except under subsection (2) above.

9

Subject to subsection (8) above, a society may retain any investment which it could only have acquired under subsection (2) above.

10

The F11appropriate authority may, by a subsequent notice to the society, revoke a notice under this section at any time when it appears to it that the society again falls within subsection (3) F1. . . above.

F710A

The PRA must send to the FCA a copy of any notice it serves under subsection (6) or (10).

F511

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12

The F12FCA shall keep a copy of F6any notice served on a society under subsection (6) or (10) above in the public file of the society.