Friendly Societies Act 1992

65 Investigations on behalf of Commission. U.K.

(1) If it appears to the Commission desirable to do so for the purpose of its supervisory functions in relation to a friendly society, the Commission 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.

[F1 (1A) Where a person has notified the Commission under paragraph 1 or 2 of Schedule 13A to this Act of his intention to become a controller of or to acquire notifiable voting rights in a friendly society to which section 37(2) or (3) above applies, the Commission may, if it appears to it desirable to do so, appoint one or more competent persons to investigate and report to it on whether, if that person became such a controller or acquired such voting rights, the criteria of prudent management would be fulfilled with respect to the society.]

(2) If a person appointed under subsection (1) [F1 or (1A)] 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) [F1 or (1A)] 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.

[F1 (3A) A person appointed under subsection (1) or (1A) above may enter any premises occupied by a friendly society to which section 37(2) or (3) above applies or any subsidiary of or body jointly controlled by such a society which is being investigated by him under this section; but he shall not do so without prior notice in writing unless he has reasonable cause to believe that if such a notice were given any documents whose production could be required would be removed, tampered with or destroyed.]

(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) [F1 or (1A)] 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.

[F1 (5A) 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 Commission, has the same meaning as in section 62 above.

Textual Amendments

F1 S. 65(1A) inserted (1.9.1994) by S.I. 1994/1984 reg. 19(1)

Words in s. 65(2)(3) inserted (1.9.1994) by S.I. 1994/1984 reg. 19(2)

S. 65(3A) inserted (1.9.1994) by S.I. 1994/1984 reg. 19(3)

Words in s. 65(5) inserted (1.9.1994) by S.I. 1994/1984 reg. 19(4)

S. 65(5A) inserted (1.9.1994) by S.I. 1994/1984 reg. 19(5)

Commencement Information

I1 S. 65 wholly in force; s. 65 not in force at Royal Assent see s. 126(2); s. 65 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 65 in force for all remaining purposes at 28.4.1993 by S.I. 1993/1186, art. 2(2), Sch. 2