Source: http://www.legislation.gov.uk/ukpga/1986/53/part/VI/data.xht?view=snippet&wrap=true
Timestamp: 2019-06-26 23:10:08
Document Index: 542638062

Matched Legal Cases: ['art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art 4', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 3', 'art. 3', 'art. 3', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 3', 'art. 3', 'art. 1', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 11', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 23', 'art. 23', 'art. 13', 'art. 2', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 2', 'art. 1', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 6', 'art. 1', 'art. 1', 'art. 1', 'art. 12', 'art. 1', 'art. 10', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 1', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 13', 'art. 2', 'art. 13', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 2', 'art. 1', 'art. 2']

F2[Powers in relation to principal purpose and nature limits]E+W+S+N.I.
[F336 Power to direct restructuring of business etc.E+W+S+N.I.
the powers conferred by this section become exercisable by the [F4appropriate authority] in relation to the society (the requirements referred to in paragraphs (a), (b) and (c) above being referred to in this section as “the relevant statutory requirements”).
(2)The [F4appropriate authority] may give the society a direction under subsection (3), (5) or (6) below.
(3)A direction by the [F4appropriate authority] under this subsection is a direction requiring the society, within a specified period, to submit for its approval a plan (in this section referred to as a “restructuring plan”) designed to secure the following purposes, that is to say—
(b)the assets and liabilities of the society shall be determined by reference to a balance sheet prepared by the directors by reference to that day and sent to the [F4appropriate authority] within the period of three months beginning with that day;
(5)A direction by the [F4appropriate authority] under this subsection is a direction requiring the society—
(b)to notify the [F4appropriate authority] [F5and, if the appropriate authority is the PRA, the FCA] of the result of the meeting.
(6)A direction by the [F4appropriate authority] under this subsection is a direction requiring the society, at its option, either—
and, within a specified period, to notify the [F4appropriate authority] [F6and, if the appropriate authority is the PRA, the FCA] of the option it has decided to pursue.
(7)Where the [F4appropriate authority] gives a direction under subsection (3), (5) or (6) above, it may also give a direction under this subsection—
(8)Where a restructuring plan is submitted by a society to the [F4appropriate authority] under subsection (3) or (6) above then—
(a)if it appears to the [F4appropriate authority] that the plan is reasonably likely to secure its purposes, the [F4appropriate authority] shall approve it and direct the society to carry it out;
(b)if it appears to it that the plan is, with modifications, likely to secure its purposes and the [F4appropriate authority] and the society agree on appropriate modifications within the period of 21 days from the date on which the [F4appropriate authority] notifies the society of the modifications it proposes for the society’s agreement, the [F4appropriate authority] shall approve the plan as modified and direct the society to carry it out;
(a)if the resolutions are agreed to and the confirmation of the transfer by the [F4appropriate authority] is obtained, the society shall proceed under section 97 to transfer its business to a successor company;
(b)if either resolution is disagreed to, the society shall notify the [F4appropriate authority] of that fact as soon as it is practicable to do so.
(10)In the event of the [F4appropriate authority] receiving a notice from a society under subsection (9)(b) above, it may, if it thinks fit, serve on the society a direction requiring it, within a specified period, to submit to the [F4appropriate authority] for its approval a restructuring plan; and if the [F4appropriate authority] does so, subsection (8) above shall apply as if the plan had been submitted under subsection (3) above.
(11)The [F4appropriate authority] may, if it thinks fit, extend or further extend any period during which a building society is to take any steps required of it under any of the foregoing provisions of this section and may do so whether or not application is made to it before the expiry of the period in question.
(12)If a building society which has been directed under subsection (8) above to carry out a restructuring plan fails, within the period allowed to it under the foregoing provisions of this section, to secure the purpose of the plan specified in subsection (3)(a) above, the powers conferred on the [F4appropriate authority] by section 36A shall become exercisable in relation to the society.
or if the [F4appropriate authority] rejects a restructuring plan under subsection (8) above, the powers conferred on the [F4appropriate authority] by section 37 shall become exercisable in relation to the society.
(16)Nothing in this section implies that it is improper for the [F4appropriate authority] to give to a building society or building societies generally an indication of the action it might or might not take in relation to any proposed activity of theirs.]
[F8(17)The PRA must consult the FCA before issuing a direction under this section.]
F3S. 36 and cross-heading substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 13(1), 47(3); S.I. 1997/2668, art. 2, Sch. Pt. II(k)
F4Words in s. 36 substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 10(2) (with Sch. 12)
F5Words in s. 36(5)(b) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 10(3) (with Sch. 12)
F6Words in s. 36(6) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 10(4) (with Sch. 12)
F7S. 36(14) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F8S. 36(17) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 10(5) (with Sch. 12)
[F936A Power to make prohibition orders.E+W+S+N.I.
(1)Where by virtue of section 36(12) the powers conferred by this section become exercisable in relation to a building society, the [F10[F11appropriate authority] may] issue a prohibition order directed to the society.
(4)The saving or transitional provisions which may be included in a prohibition order shall be such as appear to the [F11appropriate authority] to be just having regard to—
[F12(5)If the [F11appropriate authority] proposes to issue a prohibition order under this section it must give the society a warning notice.
(5A)If the [F11appropriate authority] decides to issue a prohibition order under this section it must give the society a decision notice, and may issue the order at the same time as or after giving the decision notice.
(5B)A warning notice or decision notice about a prohibition order under this section must set out the terms of the order which the [F11appropriate authority] proposes (or has decided) to make, including any saving or transitional provisions to be included in it.
[F13(5E)The PRA must consult the FCA about the terms of the prohibition order in question before giving a warning notice or a decision notice under this section.]
F14[(6)If the [F11appropriate authority] issues a prohibition order under this section it shall serve the order on the societyF15....]
(7)A prohibition order so F16. . . issued shall, subject to subsection (11) below, take effect on the date specified in the order.
[F17(9A)The PRA must give the FCA a copy of any order issued under this section.
(10)Subject to subsection (11) below, a prohibition order shall remain in force until revoked by the [F11appropriate authority] .
(11)The [F11appropriate authority] may suspend or revoke a prohibition order so far as it relates to an asset the disposal of which appears to it, on the application of the society, to be impracticable.
(a)the power conferred on the [F11appropriate authority] by section 37(1) shall become exercisable in relation to the society; and
(b)the [F11appropriate authority] may exercise that power or certify the contravention in writing to the High Court, or do both of those things;
F9S. 36A inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 14, 47(3); S.I. 1997/2668, art. 2, Sch. Pt. II(l)
F10Words in s. 36A(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II, para. 142(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F11Words in s. 36A substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 11(2) (with Sch. 12)
F12S. 36A(5)-(5D) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for s. 36A(5) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II, para. 142(c) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F13S. 36A(5E) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 11(3) (with Sch. 12)
F14S. 36A(6) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II, para. 142(d) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F15Words in s. 36A(6) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 11(4) (with Sch. 12)
F16Words in s. 36A(7) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F17S. 36A(9A)(9B) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 11(5) (with Sch. 12)
[F1837 Powers to petition for winding up etc.E+W+S+N.I.
(c)the [F19appropriate authority] has reason to believe that a building society has ceased to comply with the requirement imposed by section 5(1)(a) (purpose or principal purpose),
the [F19appropriate authority] may present a petition to the High Court for the winding up of the society under the applicable winding up legislation; and the power conferred by this subsection is available to the [F19appropriate authority] whether or not it has previously presented a petition.
(2)Where by virtue of section 36(13) the powers conferred by this section become exercisable in relation to a building society, the [F19appropriate authority] may make an application to the High Court for an order giving directions to the society under subsection (3) below; and the power conferred by this subsection is available to the [F19appropriate authority] whether or not it has previously made an application for such an order.
[F20(4) Where the High Court makes an order under subsection (3)—
F18S. 37 substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 15, 47(3); S.I. 1997/2668, art. 2, Sch. Pt. II(m)
F19Word in s. 37(1)(2) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 12(2) (with Sch. 12)
F20S. 37(4) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 12(3) (with Sch. 12)
Power to determine extent of building society powersE+W+S+N.I.
[F2138 Power to determine building society’s powers.E+W+S+N.I.
(1)The Commission shall have power to determine whether a particular activity of a building society or its subsidiary is or is not within the existing powers of the society and may, if it thinks fit, take such professional advice as it considers it needs to enable it to make the determination.
(2)A determination may be made under this section in relation to an activity which is proposed to be carried on as well as in relation to one which is being carried on.
(3)The powers of the Commission in relation to a building society are exercisable—
(a)on an application made by the society, requesting the Commission to make the determination,
(b)on an application made by the society at the direction of the central office under Part II of Schedule 2 to this Act, or
(c)on the Commission’s own motion or on an application made by the society at its direction,
as provided in subsection (4), (5), (6) or (8) below.
(4)A building society may at any time, on complying with the following provisions of this section, make an application to the Commission for a determination under this section whether an activity specified in the application is or is not within its powers if the directors of the society are of the opinion that there is a doubt about the existence or extent of the powers to carry on the activity which requires to be resolved in the interests of the society.
(5)A building society which has been directed by the central office under Part II of Schedule 2 to this Act to make an application to the Commission under this section shall, in accordance with the direction, make an application to the Commission for a determination whether the activity specified in the application is or is not within its powers.
(6)If it appears to the Commission at any time that a building society or its subsidiary is carrying on or is about to carry on an activity which is or may be outside the existing powers of the society, the Commission may, by notice to the society specifying the activity and its opinion, direct it to make an application for a determination under this section whether the activity is or is not within its powers and it shall be the duty of the society to comply with the direction.
(7)A direction under subsection (6) shall require the application to be made within the period of 21 days beginning with the date on which the notice is given, but the Commission may extend or further extend the period within which the application is to be made.
(8)If a building society fails, within the time allowed by or under subsection (7) above, to make an application as directed under subsection (6) above, the Commission may, of its own motion, proceed to make a determination under this section as if an application had been made by the society.
(9)An application by a building society under subsection (4), (5) or (6) above shall be made in writing, signed by the secretary as such an application, and shall comprise—
(a)a statement of the question for determination, specifying the activity and the powers in question, the nature of the doubt and (except in the case of an application under subsection (6)) the arguments for and against the activity being within those powers, as they appear to the society, and
(b)such documents or draft documents and such other information as are necessary to enable the determination to be made.
(10)The statement of the question for determination may, with the agreement of the Commission, be amended at any time before the determination is made and in that event further documents and other information may be included in the application.
(11)The Commission may, by notice to the society, require a society making an application under subsection (4), (5) or (6) above to amend the statement of the question for determination or to furnish such further documents or other information or such explanations of the statement, documents or information as appear to it to be necessary to enable the determination of the question to be made; and the Commission may allow or require the explanations to be made orally instead of in writing.
(12)In this section and sections 39 and 40—
“activity” includes the exercise, or purported exercise, of any power under this Act, including the holding of any property or rights;
“existing”, with reference to powers, means existing at the relevant date and, in relation to a building society, “existing powers” denotes the powers it has, or has adopted, under this Act, with any restrictions it has assumed, as at that date but disregarding anything done by the Commission and then in force (otherwise than under section 39 or 40) by virtue of which the society is precluded from exercising, or is subject to restrictions on the exercise of, its powers;
(a)in a case where the Commission decides to proceed of its own motion, the date when the Commission so decides;
(b)in a case where the society makes the application at the direction of the central office, the date specified in the direction; and
(c)in any other case, the date on which the society makes the application.
(13)Nothing in this section or section 39 or 40 implies that it is improper for the Commission to give to a building society or building societies generally an indication of the action it might or might not take in relation to any proposed activity of theirs; and if any determination comes to be made in relation to the activity the proceedings shall not be liable to be set aside by reason of the indication having been given.]
F21Ss. 38-40 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 12(1)(d), 46(2), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(j)(y)(cc)(v)
[F2239 The determination: notification, effect, appeal.E+W+S+N.I.
F22Ss. 38-40 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 12(1)(d), 46(2), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(j)(y)(cc)(v)
[F2340 Power to make prohibition orders.E+W+S+N.I.
F23Ss. 38-40 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 12(1)(d), 46(2), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(j)(y)(cc)(v)
Powers in relation to authorisationE+W+S+N.I.
F2441. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F24S. 41 repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4, (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F2542. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F25S. 42 repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F2642A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F26S. 42A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
[F2742B Power to direct transfers of engagements or business.E+W+S+N.I.
(1)If, with respect to a building society [F28which has a permission under [F29Part 4A] of the Financial Services and Markets Act 2000 to accept deposits, the [F30appropriate authority]] considers it expedient to do so in order to protect the investments of shareholders or depositors, it may either—
[F31(aa)direct the society, within a specified period, to transfer its business under section 97 to an existing or specially formed company that is a subsidiary of another mutual society by a transfer to which provision made by order under section 3 of the 2007 Act (transfers to subsidiaries of other mutuals) applies;]or
(b)direct the society, within a specified period, to transfer its business [F32under section 97 to an existing company that is not a subsidiary of another mutual society] .
[F33(1A)In this section—
[F34(2)If it appears to the [F30appropriate authority] that a society has failed to comply with a direction under subsection (1), the [F30appropriate authority] may exercise its power under [F35section 55J (variation or cancellation on initiative of regulator), section 55L (imposition of requirements by FCA) or section 55M (imposition of requirements by PRA)] of the Financial Services and Markets Act 2000 in relation to the society F36....
(2A)Subsection (2) does not affect the [F30appropriate authority] ’s ability to exercise that power, in relation to the society, on any other ground.]
(3)Where the [F30appropriate authority] —
the [F30appropriate authority] may, if it considers it expedient to do so in order to protect the investments of shareholders or depositors, direct that, instead of resolving to transfer its engagements by the two resolutions required by section 94(2) (with or without the additional resolution required by section 94(3)), the society may resolve to do so by a resolution of the board of directors.
(4)Where the [F30appropriate authority] —
(a)gives a building society a direction under subsection [F37(1)(aa) or (b) ] above; or
(b)does not give a building society such a direction solely because the society is already seeking to transfer its business to an existing company [F38, or to a specially formed company that is a subsidiary of another mutual society,] under section 97,
the [F30appropriate authority] may, if it considers it expedient to do so in order to protect the investments of shareholders or depositors, direct that, instead of approving the transfer and the terms of the transfer by the two resolutions required by section 97(4)(c), the society may approve the transfer and those terms by a resolution of the board of directors.
(b)may be given subject to such limitations or conditions as the [F30appropriate authority] may think fit; and
[F39(5A)The PRA must consult the FCA before giving a direction under this section.]
(8)The [F41Treasury] may make regulations for the purpose of specifying, as prescribed matters—
F27S. 42B inserted (9.6.1997) by 1997 c. 32, s. 17(1); S.I. 1997/1427, art. 2(c)
F28Words in s. 42B(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 145(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F29Words in s. 42B(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 13(3) (with Sch. 12)
F30Words in ss. 42B(1)-(5) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 13(2) (with Sch. 12)
F31S. 42B(1)(aa) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 56(2)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F32Words in s. 42B(1)(b) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 56(2)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F33S. 42B(1A) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 56(3), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F34S. 42B(2)(2A) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for s. 42B(2) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II, para. 145(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F35Words in s. 42B(2) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 13(4)(a) (with Sch. 12)
F36Words in s. 42B(2) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 13(4)(b) (with Sch. 12)
F37Words in s. 42B(4)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 56(4)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F38Words in s. 42B(4)(b) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 56(4)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F39S. 42B(5A) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 13(5) (with Sch. 12)
F40S. 42B(6) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F41Word in s. 42B(8) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 145(e) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
C6S. 42B(8): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. III; S.I. 2001/3538, art. 2(1)
[F4342C[F42Variation and revocation of transfer directions]E+W+S+N.I.
(1)A direction under section 42B(1) F44. . . may be varied by a further direction; and a direction may be revoked by the [F45appropriate authority] by a notice in writing to the building society concerned.
[F46(1A)If the appropriate authority is the PRA, it must consult the FCA before varying or revoking a direction.]
F47(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
F42Side-note to s. 42C substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, art. 2, 8, 13(1), Sch. 3 Pt. II para. 146(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F43S. 42C inserted (9.6.1997) by 1997 c. 32, s. 18; S.I. 1997/1427, art. 2(c)
F44Words in s. 42C(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F45Word in s. 42C(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 14(2) (with Sch. 12)
F46S. 42C(1A) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 14(3) (with Sch. 12)
F47S. 42C(2)(3) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F4843. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F48Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3) Sch. 5); S.I. 2001/3538, art. 2(1)
Ss. 43-45A continued (1.12.2001) by S.I. 2001/2657, art. 11 (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23(1))
Ss. 43-45A continued (with modifications) (1.12.2001) by S.I. 2001/3083, arts. 1(2), 11; S.I. 2001/3538, art. 2(1)
F4943A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F49Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2) Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F5043B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F50Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F5144. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F51Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F5245. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F52Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
[F53General functions of Commission]E+W+S+N.I.
F53S. 45AA and cross-heading inserted (1.12.1997) by 1997 c. 32, s. 22; S.I. 1997/2668, art. 2, Sch. Pt. I(d)
F5445AA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F54Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F5545A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F55Ss. 43-45A repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
[F56Notices, hearings and appeals]E+W+S+N.I.
F56S. 46A and cross-heading substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for ss. 46-49 and cross-heading by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 148 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
[F5746A Notices, hearings and appeals.E+W+S+N.I.
(1)If the [F58appropriate authority] proposes—
(2)The warning notice must set out the terms of the direction which the [F58appropriate authority] proposes to give.
(3)If the [F58appropriate authority] decides—
(4)The decision notice must set out the terms of the direction which the [F58appropriate authority] has decided to give.
(5)A society to whom a decision notice is given under this section may refer the matter to the [F59Upper Tribunal].
(d)section 392 (application of sections 393 (third party rights) and 394 (access to [F58appropriate authority] material)) is to be read—
F57S. 46A substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for ss. 46-49 by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 148 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F58Words in s. 46A substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 15 (with Sch. 12)
F59Words in s. 46A(5) substituted (6.4.2010) by The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 7(a) (with Sch. 5)
F60S. 46A(7) omitted (6.4.2010) by virtue of The Transfer of Tribunal Functions Order 2010 (S.I. 2010/22), art. 1(2)(e), Sch. 2 para. 7(b) (with Sch. 5)
C7S. 46A(1) extended (1.12.2001) by S.I. 2001/3592, arts. 36(2), 38(1) (with art. 23(2))
C8S. 46A(8)(d)(i) excluded (1.12.2001) by S.I. 2001/3592, arts. 36(3), 38(2) (with art. 23(2))
Advertising etc.E+W+S+N.I.
F7150. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.
F71S. 50 repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
[F7251 Powers to avoid apparent association with other bodies.E+W+S+N.I.
F72S. 51 repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 16, Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(y)(z)(vii)(cc)(vi)
(1)This section applies to information, documents or other material, or explanations of matters, which relate to the business of a building society or its plans for future development and, in relation to the obtaining under this section of information or explanations or the production under this section of documents or other material to which it applies “the purposes of its supervisory functions” means the purposes of the discharge by the [F73[F74FCA or the PRA of any of their respective functions] under Part I, sections 36, 36A, 37, 42B, 42C and 46A, Part X and section 107.]
(2)Where a building society has [F75connected undertakings] this section also applies to information, documents or other material, or explanations of matters, which relate to, or also relate to, the business, or the plans for future development, of every such [F76connected undertaking].
[F77(3)Where the Commission has grounds under section 51(1) for giving a direction to a building society under subsection (2) of that section in relation to another body corporate this section also applies to information, documents or other material, or explanations of matters, which relate to the business of that other body.]
(4)This section does not authorise any requirement in relation to information, documents or other material to be imposed on a [F78connected undertaking of] a building society unless [F79that undertaking] carries on business in the United Kingdom; but a requirement may be imposed under this section on a building society in relation to information, documents or other material in the possession or control of a [F80connected undertaking] outside the United Kingdom.
(5)Subject to subsection (4) above, the [F81FCA and the PRA] may by notice to a building society, [F82or connected undertaking]—
(a)require [F83the society or undertaking] to which it is addressed to furnish to it, within a specified period or at a specified time or times, such specified information as the [F84it] considers it needs for the purposes of its supervisory functions;
(b)require [F83the society or undertaking] to which it is addressed to produce to it, at a specified time and place, such specified documents or other material as the [F84it] considers it needs for the purposes of its supervisory functions;
(c)require [F83the society or undertaking] to which it is addressed to provide to it, within specified period, such explanations of specified matters as the [F84it] considers it needs for the purposes of its supervisory functions;
(d)require [F83the society or undertaking] to which it is addressed to furnish to it a report by an [F85approved accountant or other person with relevant professional skill] on, or on specified aspects of, information or documents or other material furnished or produced to the [F84it] .
[F86(5A)Subject to subsection (4) above, [F87any person authorised for the purpose by the [F88FCA or the PRA] (“an authorised officer”) may, on producing evidence of his authority,] require a building society or connected undertaking—
(a)to furnish to him forthwith such specified information as the [F89body which authorised the person] considers it needs for the purposes of its supervisory functions;
(b)to produce to him forthwith such documents or other material as the [F89body which authorised the person] considers it needs for those purposes;
(c)to provide to him forthwith such explanations of specified matters as the [F89body which authorised the person] considers it needs for those purposes.
(6)Where by virtue of subsection (5)(a) to (c) above the [F90FCA or the PRA has power] , or by virtue of subsection (5A) above an authorised [F91officer] has power, to require the furnishing of any information, the production of any document or material or the provision of any explanation, by a building society or connected undertaking, the [F92FCA, the PRA or the authorised officer (as the case may be)] shall have the like power as regards any person who—
(b)in the case of documents or material, appears to the [F92FCA, the PRA or the authorised officer (as the case may be)] to have the document or material in his possession or under his control.]
(8)Nothing in the foregoing provisions of this section shall compel the production by a [F93relevant lawyer] of a document or material containing a privileged communication made by him or to him in that capacity or the furnishing of information contained in a privileged communication so made.
[F94(9)Where, by virtue of subsection (5), (5A) or (6) above, the [F95FCA, the PRA or an authorised officer] requires the production by a building society or connected undertaking or any other person of documents or material, the [F96FCA, the PRA or the authorised officer (as the case may be)] may—
[F97(13)In this section—
“approved”, in relation to an accountant or other person with relevant professional skill, means approved by the [F98FCA or the PRA] ;
[F99“relevant lawyer” means a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege;]
F73Words in s. 52(1) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) for s. 52(1)(a)(b) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 para. 150(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F74Words in s. 52(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(2) (with Sch. 12)
F75Words in s. 52(2) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(2)(a); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F76Words in s. 52(2) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(2)(b); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F77S. 52(3) repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 17(3), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)(cc)(vii)
F78Words in s. 52(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(4)(a); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F79Words in s. 52(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(4)(b); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F80Words in s. 52(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(4)(c); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F81Words in s. 52(5) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(3)(a) (with Sch. 12)
F82Words in s. 52(5) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(5)(a); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F83Words in s. 52(5) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 17(5)(b); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(viii)
F84Word in s. 52(5)(a)-(d) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(3)(b) (with Sch. 12)
F85Words in s. 52(5)(d) substituted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 17(5)(c); S.I. 1997/1427, art. 2(k)(n)(iii)
F86S. 52(5A)(6) substituted for s. 52(6) (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 17(6); S.I. 1997/1427, art. 2(k)(n)(iii)
F87Words in s. 52(5A) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2(a)(b), 8, 13(1), Sch. 3 para. 150(c)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F88Words in s. 52(5A) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(4)(a) (with Sch. 12)
F89Words in s. 52(5A)(a)-(c) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(4)(b) (with Sch. 12)
F90Words in s. 52(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(5)(a) (with Sch. 12)
F91Word in s. 52(6) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2(a)(b), 8, 13(1), Sch. 3 para. 150(d)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F92Words in s. 52(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(5)(b) (with Sch. 12)
F93Words in s. 52(8) substituted (1.1.2010) by Legal Services Act 2007 (c. 29), s. 211(2), Sch. 21 para. 70(a) (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(h)
F94S. 52(9) substituted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 17(7); S.I. 1997/1427, art. 2(k)(n)(iii)
F95Words in s. 52(9) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(6)(a) (with Sch. 12)
F96Words in s. 52(9) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(6)(b) (with Sch. 12)
F97S. 52(13) substituted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 17(8); S.I. 1997/1427, art. 2(k)(n)(iii)
F98Words in s. 52(13) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 16(7) (with Sch. 12)
F99Words in s. 52(13) inserted (1.1.2010) by Legal Services Act 2007 (c. 29), s. 211(2), Sch. 21 para. 70(b) (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(h)
[F10052B Entry of premises under warrant under section 176 of the Financial Services and Markets Act 2000.E+W+S+N.I.
(1)A justice of the peace may issue a warrant under section 176 of the Financial Services and Markets Act 2000 if satisfied on information on oath given by or on behalf of the [F101FCA or the PRA] , an authorised officer within the meaning of section 52(5A) above, or a person appointed as an investigator under section 55(1) below or as an inspector under section 56(1) below, that there are reasonable grounds for believing that the first or second set of conditions below is satisfied.
F100S. 52B substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) for s. 52A by S.I. 2001/2617, arts. 2(a)(b), 8, 13(1), Sch. 3 para. 151 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F101Words in s. 52B(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 17 (with Sch. 12)
[F10253A Disclosure of information.E+W+S+N.I.
[F103(i)the FCA;
(ii)any person who is or has been employed by the [F104FCA or the PRA] ; and
(iii)any person appointed by the [F104FCA or the PRA] to carry out functions under this Act.
(b)was received by a primary recipient (within the meaning of subsection (1)(b)) for the purposes of, or in the discharge of, any functions of the [F105FCA or the PRA] under any provision made by or under this Act; and
F102S. 53A substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) for s. 53 by S.I. 2001/2617, arts. 2(a)(b), 8, 13(1), Sch. 3 para. 152 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F103S. 53A(1)(b)(i)(ia) substituted for s. 53A(1)(b)(i) (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 18(2) (with Sch. 12)
F104Words in s. 53A(1)(b)(ii)(iii) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 18(3) (with Sch. 12)
F105Words in s. 53A(2)(b) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 18(4) (with Sch. 12)
C23S. 53A(1) restricted (temp. from 3.9.2001 until 30.11.2001) by S.I. 2001/2966, art. 6
54Information disclosed to [F106FCA or PRA] from other sources.E+W+S+N.I.
(1)If and in so far as it appears to the Secretary of State that the disclosure of any information will enable the [F107FCA or the PRA] better to discharge its functions under this Act (but not otherwise),—
(a)information obtained by the Secretary of State under section 447 or 448 of the M1Companies Act 1985 (inspection of companies’ books and papers) may be disclosed to the [F107FCA or the PRA] or further disclosed, notwithstanding the provision as to security of information contained in section 449 or that Act; and
(b)where the information is contained in a report made by inspectors appointed under section 431, 432 [F108or 442] of the Companies Act 1985 (investigation of affairs or ownership of companies and certain other bodies corporate) the Secretary of State may furnish a copy of the report to the [F107FCA or the PRA] .
F110(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F110(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F110(3B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F110(3C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F111(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F110(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F106Words in s. 54 heading substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 19(3) (with Sch. 12)
F107Words in s. 54 substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 19(2) (with Sch. 12)
F108Words in s. 54(1)(b) substituted (1.10.2007) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), art. 1(3)(a), Sch. 4 para. 47 (with art. 12, Sch. 4 para. 47(2))
F109S. 54(2) omitted (1.10.2009) by virtue of The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 87(2) (with art. 10)
F110S. 54(3)-(6) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F111S. 54(4)(5) repealed by Banking Act 1987 (c. 22, SIF 10), s. 108, Sch. 6 para. 26(5), Sch. 7 Pt. I and expressed to be repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 4); S.I. 2001/3538, art. 2(a)
C24S.54 modified by Companies Act 1989 (c. 40, SIF 27), s. 88(3)(b)(5)(6)
Inspections, etcE+W+S+N.I.
55Investigations on behalf of [F112FCA or PRA] .E+W+S+N.I.
(1)If it appears to [F113the FCA or the PRA] desirable to do so for the purposes of its supervisory functions in relation to a building society, [F114it] may appoint one or more competent persons to investigate and report to it on the state and conduct of the business of the society concerned, or any particular aspect of that business.
(2)If a person appointed under subsection (1) above thinks it necessary for the purposes of his investigation, he may also investigate the business of any body corporate which is or has at any relevant time been [F115a connected undertaking of the building society under investigation]
(3)It shall be the duty of every officer, employee and agent of a building society or other body which is under investigation—
(a)to produce to the persons appointed under subsection (1) 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; and
(c)otherwise to give to those persons all assistance in connection with the investigation which he is reasonably able to give.
(4)Any officer, employee or agent of a building society or other body who—
(a)without reasonable excuse fails to produce any records, books or papers which it is his duty to produce under subsection (3) above, or
(b)without reasonable excuse fails to attend before the person appointed under subsection (1) above when required to do so, or
(c)without reasonable excuse fails to answer any question which is put to him by persons so appointed with respect to any building society or other body corporate which is under investigation,
(5)Any officer, employee or agent of a building society or other body who knowingly or recklessly furnishes to any person appointed under subsection (1) above any information which is false or misleading in a material particular, shall be liable—
(a)on conviction on indictment to imprisonment for a term not exceeding two years or to a fine or both; and
(a)“agent”, in relation to a building society or other body whose business is under investigation, includes its bankers, its accountants and solictors and any persons, where they are not officers of the other body concerned, who are employed as its auditors;
(b)“the purposes of its supervisory functions”, in relation to the [F116FCA or the PRA] , has the same meaning as in section 52; and
(c)any reference to an officer, employee or agent of a building society or other body includes a reference to a person who has been but no longer is an officer, employee or agent of that society or other body.
F112Words in s. 55 heading substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 20(4) (with Sch. 12)
F113Words in s. 55(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 20(2)(a) (with Sch. 12)
F114Word in s. 55(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 20(2)(b) (with Sch. 12)
F115Words in s. 55(2) substituted for s. 55(2)(a)(b) (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 21; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(x)
F116Words in s. 55(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 20(3) (with Sch. 12)
C25S. 55 extended (1.1.2003) by 2000 c. 39, s. 2, Sch. 2 para. 13(1); S.I. 2002/2711, art. 2 (subject to arts. 3-5)
S. 55 extended (prosp.) by S.I. 2002/3152, arts. 1(2)(3), 4, Sch. 2 para. 13(1)
C26S. 55 extended (NI) (2.2.2004) by The Insolvency (Northern Ireland) Order 2002 (S.I. 2002/3152), art. 1(3), Sch. 2 para. 13(1); S.R. 2003/545, art. 2 (subject to S.R. 2003/546, arts. 2-7)
C27S. 55(6)(a) amended (E.W.) (1.1.1992) by S.I. 1991/2684, arts. 2(1), 4, Sch. 1
56 Inspections and special meetings: general.E+W+S+N.I.
(1)In the circumstances mentioned in subsection (2) below, the [F117FCA and the PRA] —
(a)may appoint one or more competent inspectors to investigate and report on the affairs of a building society, or
(b)may call a special meeting of a building society to consider its affairs, or
(c)may (either on the same or on different occasions) both appoint an inspector or inspectors and call a special meeting for those purposes;
and, in the circumstances mentioned in subsection (3) below, the investigation or consideration may extend to the affairs of any body corporate which is or at any relevant time has been a [F118connected undertaking of] the building society.
[F119(1A)The FCA must consult the PRA before exercising the power in subsection (1).
(1B)The PRA must consult the FCA before exercising the power in subsection (1).]
(2)The powers conferred by subsection (1) above may be exercised either—
(a)on the application of the requisite number of members of the society, or
(b)where no such application is made but the [F120FCA or the PRA (as the case may be)] is of opinion that an investigation should be held into the affairs of the society, or that the affairs of the society call for consideration by a meeting of its members.
(3)The powers conferred by subsection (1) above may be exercised in relation also to a [F121connected undertaking of] a building society either—
(a)where the application referred to in subsection (2)(a) above so requests, or
(b)where the application contains no such request but the [F120FCA or the PRA (as the case may be)] is of the opinion that it is necessary for the purposes of the investigation into or consideration of the affairs of the building society that the affairs of the [F122connected undertaking] should also be investigated or considered.
(4)Where the inspectors are of the opinion mentioned in subsection (3)(b) above in relation to a [F121connected undertaking of] a building society they may, with the consent of the [F123body exercising its powers under subsection (1)] , extend their investigation to the affairs of the [F122connected undertaking] and make their report accordingly.
(5)For the purposes of subsections (1) to (3) above the requisite number of members—
(a)in the case of a building society having more than 1,000 members, is 100, and
(b)in the case of any other building society, is one-tenth of the whole number of members of the society.
(6)The following provisions shall have effect where an application is made as mentioned in subsection (2)(a) above, that is to say—
(a)the application shall be supported by such evidence as the [F124body to which the application was made] may require for the purpose of showing that the applicants have good reason for requiring an investigation by inspectors or consideration by a special meeting, as the case may be, and that the applicants are not actuated by malicious, frivolous, vexatious or scandalous motives in their application;
(b)such notice of the application shall be given to the building society and, in a case where the investigation is to extend to its affairs also, to the society’s [F125connected undertaking], as the [F124body to which the application was made] may direct;
(c)the [F124body to which the application was made] shall require the applicants to give security for payment of the costs of the investigation or meeting before the inspector is appointed or the meeting is called subject, in the case of the costs of an investigation, to an amount not exceeding the corresponding Companies Act limit; and
(d)as regards the expenses of or incidental to the investigation or meeting—
(i)in the case of an investigation (in whichever way instituted), the expenses shall be defrayed in the first instance by the [F124body to which the application was made] but without prejudice to its rights to contribution under section 57(10);
(ii)in the case of a meeting, the expenses shall be defrayed by the applicants, or out of the funds of the society, or by the members or officers or former members or officers of the society, in such proportions as the [F124body to which the application was made] may direct.
(7)[F126Before the FCA or the PRA exercises] its powers under subsection (1) above in a case falling within subsection (2)(b) above, [F127it] shall inform the building society of the action which it proposes to take and the grounds for that action, and the society shall, within 14 days of receiving the information, be entitled to give [F128the body exercising its powers under subsection (1)] an explanatory statement in writing by way of a reply.
(8)Where the [F129FCA or the PRA] proposes to exercise its powers under subsection (1) above in a case falling within subsection (3)(b) above, subsection (7) above shall apply in relation to the [F125connected undertaking] as it applies in relation to the society.
(9)Inspectors appointed under this section shall, in addition to having the powers which are necessary for or incidental to the discharge of their functions under this section, have the powers specified in section 57.
(10)Where a special meeting is called under this section—
(a)the [F130body exercising its powers under subsection (1)] may direct at what time and place the meeting is to be held, and what matters are to be discussed and determined at the meeting, and may give such other directions as it thinks fit with respect to the calling, holding and conduct of the meeting;
(b)the [F130body exercising its powers under subsection (1)] may appoint a person to be chairman at the meeting or, in default of such an appointment, the meeting may appoint its own chairman;
(c)the meeting shall have all the powers of a meeting called according to the rules of the building society;
and the provisions of this subsection and any direction given under it shall have effect notwithstanding anything in the rules of the building society.
(11)In this section “the corresponding Companies Act limit”, in relation to security for the payment of the costs of an investigation, is £5,000 or such other sum as is specified for the time being in an order under section 431(4) of the M2Companies Act 1985 for the purposes of that section.
F117Words in s. 56(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(2) (with Sch. 12)
F118Words in s. 56(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 22(1); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xi)
F119S. 56(1A)(1B) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(3) (with Sch. 12)
F120Words in s. 56(2)(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(4) (with Sch. 12)
F121Words in s. 56(3)(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 22(2)(a); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xi)
F122Words in s. 56(3)(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 22(2)(b); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xi)
F123Words in s. 56(4) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(5) (with Sch. 12)
F124Words in s. 56(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(6) (with Sch. 12)
F125Words in s. 56(6)(8) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 22(3); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xi)
F126Words in s. 56(7) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(7)(a) (with Sch. 12)
F127Word in s. 56(7) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(7)(b)(i) (with Sch. 12)
F128Words in s. 56(7) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(7)(b)(ii) (with Sch. 12)
F129Words in s. 56(8) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(8) (with Sch. 12)
F130Words in s. 56(10) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 21(9) (with Sch. 12)
57 Inspections: supplementary provisions.E+W+S+N.I.
“the body under investigation” means the building society whose affairs or, as the case may be, the building society whose affairs, and each [F131connected undertaking of] the building society whose affairs, are the subject of the investigation;
“the inspectors” means the persons appointed F132... under section 56 to conduct the investigation;
and references to officers or to agents include past, as well as present, officers or agents (as the case may be) and “agents”, in relation to a building society or any [F131connected undertaking of] a building society, includes its bankers, its accountants and solicitors and its auditors.
[F133(5A)However, in criminal proceedings in which that person is charged with an offence to which this subsection applies—
(c)an offence under Article 7 or 10 of the M3Perjury (Northern Ireland) Order 1979 (false statements made on oath otherwise than in judicial proceedings or made otherwise than on oath).]
(7)The inspectors may, and if so directed by the [F134body which appointed the inspectors] shall, make interim reports to the [F134body which appointed the inspectors] , but they may at any time in the course of the investigation, without making an interim report, inform the [F134body which appointed the inspectors] of matters coming to their knowledge as a result of the investigation tending to show that an offence has been committed.
(8)The [F135body which appointed the inspectors] may, if it thinks fit—
(b)furnish a copy of any such report on request F136. . . to—
(iv)any other person whose financial interests appear to the [F135body which appointed the inspectors] to be affected by matters dealt with in the report, whether as creditor or otherwise; and
[F137(8A)The [F138body which appointed the inspectors] may charge a reasonable fee for furnishing to any person a copy of a report under subsection (8)(b) above.]
(9)A copy of a report of inspectors appointed under section 56 to hold an investigation under that section, certified by the [F139body which appointed the inspectors] to be a true copy, is admissable in any legal proceedings as evidence of the opinion of the inspectors in relation to any matter contained in the report; and a document purporting to be such a certificate shall be received in evidence and be deemed to be such a certificate, unless the contrary is proved.
(10)The [F140body which appointed the inspectors] shall be entitled to be repaid the expenses of the investigation defrayed by it under section 56(6)(d) as provided in the following paragraphs, that is to say—
(a)by the applicants for the investigation, to such extent (if any) as the [F140body which appointed the inspectors] may direct;
F131Words in s. 57(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 23; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xii)
F132Words in s. 57(1) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(2) (with Sch. 12)
F133S. 57(5A)(5B) inserted (14.4.2000 (E.W.N.I.) and 1.1.2001 (S.)) by 1999 c. 23, ss. 59, 68(3)(4), Sch. 3 para. 9 (with Sch. 7 paras. 3(3), 5(2)); S.I. 2000/1034, art. 2(a)(3); S.S.I. 2000/445, art. 2
F134Words in s. 57(7) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(3) (with Sch. 12)
F135Words in s. 57(8) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(3) (with Sch. 12)
F136Words in s. 57(8)(b) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 8, 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F137S. 57(8A) inserted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2(a)(b), 8, 13(1), Sch. 3 para. 155(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F138Words in s. 57(8A) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(3) (with Sch. 12)
F139Words in s. 57(9) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(3) (with Sch. 12)
F140Words in s. 57(10) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 22(3) (with Sch. 12)
C28S. 57(1) amended (E.W.) (1.1.1992) by S.I. 1991/2684, arts. 2(1), 4, Sch. 1
C29S. 57(5)(5A)(5B) extended (1.1.2003) by 2000 c. 39, s. 2, Sch. 2 para. 13(2); S.I. 2002/2711, art. 2 (subject to arts. 3-5)
C30S. 57(5)-(5B) applied (NI) (2.2.2004) by The Insolvency (Northern Ireland) Order 2002 (S.I. 2002/3152), art. 1(3), Sch. 2 para. 13(2); S.R. 2003/545, art. 2 (subject to S.R. 2003/546, arts. 2-7)