Part V Regulation of Friendly Societies’ Business

Information

I162 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 F11FCA 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 F11FCA 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 F11FCA 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 F11FCA 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 F11FCA or the PRA considers it needs for the purposes of its supervisory functions;

F13A

Subject to subsection (2) above, any person authorised for the purpose by the F11FCA 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 F11FCA 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 F11FCA or the PRA considers it needs for those purposes;

c

to provide to him forthwith such explanations of specified matters as the F11FCA or the PRA considers it needs for those purposes.

4

Where by virtue of subsection (3)(a), (b) or (c) above the F2F11FCA 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 F3F12FCA, 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 F4or, in the case of a society to which section 37(2) or (3) above applies, a controller or manager of the society, or

b

in the case of documents or material, appears to the F3F12FCA, the PRA or authorised officer to have the document or material in his possession or under his control.

5

Where by virtue of subsection (3)(a), (b) or (c) above the F5F11FCA 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 F6F12FCA, 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

b

in the case of documents or material, appears to the F6F12FCA, the PRA or authorised officer to have the document or material in his possession or under his control.

F75A

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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—

F15a

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 M1Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 or the furnishing of information contained in such a communication.

8

Where, by virtue of subsection (3), F8(3A), (4) or (5) above, the F9F12FCA, 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 F10F12FCA, 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

b

in the case of a continuing offence, to an additional fine not exceeding F13one tenth of that levelF13one-tenth of the greater of £5,000 or level 4 on the standard scale for every day during which the offence continues.

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 F14; 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.