Part VU.K. Regulation of Friendly Societies’ Business

Powers of [F1Authority]U.K.

Textual Amendments

F1Word in the cross-heading substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 67; S.I. 2001/3538, art. 2(1)

54 Supervision of activities of subsidiaries etc.U.K.

(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 [F2Authority] 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 [F2Authority] 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 [F3that 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.

[F4(6)The Authority may by written notice to the society—

(a)vary a direction under this section at the request of the society; or

(b)revoke a direction under this section.]

(7)If a society requests the [F2Authority] to notify it as to whether in the opinion of the [F2Authority] it has complied with a direction under this section, the [F2Authority] shall comply with the request.

F5(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)The [F6Authority shall keep] a copy—

(a)of a direction under this section;

(b)of a notice under subsection (6) above; or

[F7(ba)of a final notice varying a direction under this section;]

(c)of a notification under subsection (7) above;

F8. . . in the public file of the society.

[F9(10)“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.]

Textual Amendments

F2Words in s. 54(2)(3)(7) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F3S. 54(4): Words and paras. (a)-(c) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F4S. 54(6) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(c) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F5S. 54(8) repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5)

F6Words in s. 54(9) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(e)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F7S. 54(9)(ba) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(e)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F8Words in s. 54(9) repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5)

F9S. 54(10) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(f) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

Commencement Information

I1S. 54 wholly in force; s. 54 not in force at Royal Assent see s. 126(2); s. 54 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 54 in force for all remaining purposes at 28.4.1993 by S.I. 1993/1186, art. 2(2), Sch. 2