SCHEDULE 5Amendments of the Friendly Societies Act 1974
I11
The Friendly Societies Act 197471 is amended as follows.
I22
1
In the provisions listed in sub-paragraph (2)—
a
for “Authority” substitute “FCA”; and
b
for “Authority’s” substitute “FCA’s”.
2
The provisions are—
a
section 12(1) 72 (establishment of new branches);
b
section 15A(1)73 (acknowledgement of registration and rules of new branch);
c
section 1674 (appeals from refusal to register);
d
section 1875 (registration of amendments of rules of society or branch);
e
section 1976 (acknowledgement of registration of amendment of rules);
f
section 2077 (appeals from refusal to register amendment of rule);
g
section 2478 (trustees of registered societies and branches);
h
section 4379 (annual return);
i
section 55(1)80 (power of the Public Trustee to hold securities of certain friendly societies and branches);
j
section 81(1)81 (power to change name);
k
section 82(5)82 (amalgamation and transfer of engagements);
l
section 84(2) and (3)83 (conversion of registered societies into companies);
m
section 84A(6)84 (conversion of registered societies into industrial and provident societies);
n
section 85(3) and (4)85 (conversion of society into branch);
o
section 86(3) and (4)86 (meaning and registration of special resolutions);
p
section 91(1A), (2), (3) and (5)87 (cancellation and suspension of registration);
q
section 94(4) and (7)88 (instrument of dissolution);
r
section 99(6)89 (punishment of fraud, etc, and recovery of property misapplied);
s
section 101(1) and (1A)90 (prosecution of offences, recovery of costs or expenses);
t
section 104A91 (fees for inspection or copying of documents);
u
section 109(1)(b) and (d)92 (regulations);
v
section 110(1) and (3)93 (evidence and deposit of documents);
w
section 111(3)94 (interpretation: seal); and
x
paragraphs 7 and 15 of Schedule 295 (matters to be provided for by the rules of societies registered under this Act).
I33
In section 30A(11)96 (publication of accounts and balance sheets), for “Authority” substitute “appropriate authority”.
I44
In section 3297 (audit of exempt societies and branches), for “Authority”, in each place, substitute “appropriate authority”.
I55
In section 32A(4) and (5)98 (power of societies to disapply section 31 (obligation to appoint auditors)) , for “Authority”, in each place, substitute “appropriate authority”.
I66
1
Section 39C99 (power to require accounts of past years to be audited) is amended as follows.
2
In subsection (1), for “Authority”—
a
in the opening words of that subsection, substitute “appropriate authority”; and
b
in paragraph (b), in each place, substitute “FCA and, if the registered society or branch is a PRA-authorised person, the PRA”.
3
In subsection (2), for “Authority” substitute “appropriate authority”.
4
In the heading, for “Authority’s power” substitute “Power of appropriate authority”.
I77
1
Section 41100 (valuations) is amended as follows.
2
In subsection (1)—
a
in paragraph (b), for “Authority” substitute “FCA and, if the registered society or branch is a PRA-authorised person, the PRA”; and
b
in the closing words of that subsection, for “Authority” substitute “appropriate authority”.
3
In subsection (3)—
a
in the opening words of that subsection, omit “to the Authority”; and
b
in paragraph (b), for “Authority” substitute “appropriate authority”.
4
In subsection (5), for “Authority” substitute “appropriate authority”.
5
In subsection (6)—
a
in the opening words of that subsection—
i
for “Authority” substitute “appropriate authority”; and
ii
for “Authority’s” substitute “its”; and
b
in paragraph (b), omit “to the Authority”.
I88
1
Section 42101 (regulations and directions relating to valuations) is amended as follows.
2
In subsection (2), for “the Authority”, in each place, substitute “the FCA and, if the registered society or branch is a PRA-authorised person, the PRA”.
3
In subsection (4)—
a
in the opening words of that subsection, for “Authority”, in each place, substitute “appropriate authority”; and
b
in paragraph (b), for “Authority”, in each place, substitute “FCA and, if the registered society or branch is a PRA-authorised person, the PRA”.
4
In subsection (5), for “Authority” substitute “appropriate authority”.
I99
After section 43(6)102 (annual return) insert—
7
If the registered society or branch is a PRA-authorised person, it shall send to the PRA a copy of the annual return sent to the FCA under subsection (1).
I1010
In section 65A(7)103 (group insurance business), for “Authority” substitute “FCA or the PRA”.
I1111
In section 76(3C)104 (decision of disputes generally), for “Authority” substitute “FCA or the PRA”.
I1212
After section 85(4) (conversion of society into branch) insert—
4A
Before making a finding under subsection (4) in relation to a society which is a PRA-authorised person, the FCA must consult the PRA.
I1313
1
Section 87105 (power to apply for winding up of registered friendly societies) is amended as follows.
2
In subsection (1), for “Authority”—
a
in the first place, substitute “FCA or the PRA”; and
b
in the second place, substitute “FCA, after consulting the PRA, or the PRA, after consulting the FCA,”.
3
After subsection (2), insert—
3
Subsection (1) does not require the FCA to consult the PRA if the society in question is not a PRA-authorised person.
4
The PRA may only present a petition under subsection (1) in respect of a society which is a PRA-authorised person.
4
In the heading, for “Authority” substitute “FCA and of PRA”.
I1414
In section 90106 (appointment of inspectors and calling of special meetings), for “the Authority”, in each place, substitute “the FCA or the PRA”.
I1515
In section 91(1)107 (cancellation and suspension of registration), for “Authority”—
a
in the first place, substitute “FCA, having consulted the PRA if the society is a PRA-authorised person,”, and
b
in each other place, substitute “FCA”.
I1616
In section 93(1)(c)108 (dissolution of societies and branches), for “Authority” substitute “FCA or the PRA”.
I1717
1
Section 94109 (instrument of dissolution) is amended as follows.
2
In subsection (2)(d), for “Authority” substitute “FCA or the PRA”.
3
After subsection (4), insert—
4A
If the society or branch is a PRA-authorised person, a copy of the instrument and declaration sent to the FCA under paragraph (4) shall be sent to the PRA.
I1818
1
Section 95110 (dissolution by award) is amended as follows.
2
In subsections (1), (3), (4) and (6), for “Authority”, in each place, substitute “appropriate authority”.
3
After subsection (3), insert—
3A
The PRA must consult the FCA before making an award and direction under subsection (3).
I1919
1
Section 95A111 (dissolution of registered friendly societies and branches by award) is amended as follows.
2
In subsections (1), (2) and (4), for “Authority”, in each place, substitute “appropriate authority”.
3
After subsection (1), insert—
1A
The PRA must consult the FCA before making an award or a direction under subsection (1).
I2020
In section 97112 (notice of proceedings or order to set aside dissolution of society or branch), for “Authority”, in each place, substitute “FCA and, if the society or branch is a PRA-authorised person, the PRA”.
I2121
In section 98(1)(b) and (7)113 (offences), for “Authority”, in each place, substitute “FCA or the PRA”.
I2222
1
Section 101114 (prosecution of offences, recovery of costs or expenses) is amended as follows.
2
After subsection (1A), insert—
1B
Summary proceedings for an offence under a provision listed in subsection (1C) may also be commenced by the PRA, in the circumstances specified in that subsection in relation to that provision, after notifying the FCA.
1C
The provisions and the circumstances are—
a
section 32 (audit of exempt societies and branches), if the failure referred to in subsection (4) of that section is a failure to comply with a direction given by the PRA under subsection (2) of that section;
b
section 39C (power to require accounts of past years to be audited), if the failure referred to in subsection (2) of that section is a failure to comply with a direction given by the PRA under subsection (1) of that section; and
c
section 98 (offences), if the neglect or refusal referred to in subsection (1)(b) of that section relates to an act or information required by the PRA.
3
In subsection (2), for “Authority” substitute “FCA or the PRA”.
I2323
In section 109(1)(c)115 (regulations), for “Authority” substitute “FCA and of the PRA”.
I2424
In section 110(2) and (2A), for “Authority” substitute “FCA or the PRA”.
I2525
In section 111(1)116 (interpretation)—
a
omit the definition of “the Authority”; and
b
at the appropriate places, insert—
“the appropriate authority” means—
- a
in relation to a society which is a PRA-authorised person, the PRA; and
- b
in relation to a society which is not a PRA-authorised person, the FCA;
“the FCA” means the Financial Conduct Authority;
“the PRA” means the Prudential Regulation Authority;
“PRA-authorised person” has the meaning in section 2B of the Financial Services and Markets Act 2000;