FRIENDLY SOCIETIES ACT 1992 (c. 40)

(The document as of February, 2008)

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(b) under section 40 above to give a direction by virtue of subsection (3)(c);

(d) under section 53 below, to give a direction;

(e) under section 90 below, to order a transfer of the society's engagements.

(3) For the purposes of this Act, the criteria of prudent management are--

1 Maintenance of any margin of solvency required by section 48 above.

2 Maintenance of liquid assets sufficient to meet the liabilities of the society as they become due.

3 Maintenance of the requisite accounting records and systems of control of business and of inspection and report.

4 Direction and management--

(a) by a sufficient number of persons who are fit and proper to be members of the committee of management or, as the case may be, other officers, in their respective positions,

(b) conducted by them, with prudence and integrity, in the interests of the members of the society.

5 In relation to insurance business, direction and management which, in addition to satisfying the other requirements as to direction and management, is such as to fulfil the reasonable expectations of members of the society as to the conduct of such business.

6 Conduct of the society's activities with adequate professional skills.

7 Supervision of the activities--

(a) of any subsidiary of the society or of any body of which the society has joint control; and

(b) of any registered branch of the society;

with due care and diligence in the interests of the members of the society and without detriment to the conduct of the society's activities.

(4) Nothing in this section implies that it is improper for a determination for any purpose of the Commission's relevant prudential powers to take account of factors other than the criteria in subsection (3) above.

(5) In considering whether a society has satisfied the 7th criterion in subsection (3) above, the Commission shall have regard to the extent to which the operation of the subsidiary, jointly controlled body or registered branch is undertaken in accordance with the other 6 criteria in that subsection so far as they are relevant.

(6) A failure to satisfy any of the first 3 criteria in subsection (3) above shall be treated, for the purposes of this section, as a failure on the part of a society's committee of management prudently to conduct the affairs of the society.

(7) A failure on the part of an authorised friendly society to comply with any conditions to which its authorisation under section 32 above is subject shall be treated, for the purposes of this section, as a failure on the part of the society's committee of management prudently to conduct the affairs of the society.

(8) Any carrying on by a friendly society of an activity beyond its powers shall be treated, for the purposes of this section, as a failure on the part of the society's committee of management prudently to conduct the affairs of the society.

(9) Any carrying on of activities which are beyond its powers--

(a) by a subsidiary of, or a body jointly controlled by, an incorporated friendly society; or

(b) by a registered branch of a registered friendly society,

shall be treated for the purposes of this section as a failure on the part of the society's committee of management to supervise the activities of the subsidiary, jointly controlled body or registered branch with due care and diligence.

(10) The following provisions apply for the interpretation of the list of criteria in subsection (3) above in their application to a friendly society, that is to say--

"activities" includes activities the society proposes to carry on;
"requisite", with reference to accounting records and systems of control, means such as are required by section 68 below; and
"sufficient" with reference to the number of members of a committee of management or of other officers, means sufficient having regard to the range and scale of the society's business.

Powers of Commission

51 Power to forbid acceptance of new members

(1) Subject to the provisions of this section, if the Commission considers it expedient to do so in the interests of the members or potential members of a friendly society, it may give the society a direction forbidding it to accept any new members.

(2) If the Commission proposes to give such a direction, it shall serve on the society a notice stating that it proposes to give a direction.

(3) A notice under subsection (2) above shall specify the grounds for the proposed direction.

(4) The Commission shall consider any representations made by the society within such period (not being less than one month) from the date on which the society is served with the notice as the Commission may allow and, if the society so requests, shall afford to it an opportunity of being heard by the Commission within that period.

(5) The Commission may not give a direction unless all the grounds for giving it are those, or among those, which were specified in the notice served on the society under subsection (2) above.

(6) On giving a direction, the Commission shall--

(a) serve notice of it on the society, specifying the grounds for making it;

(b) publish notice of it in one or more of the London, Edinburgh and Belfast Gazettes and in any such other ways as it considers appropriate; and

(7) A society which contravenes a direction given to it under this section shall be guilty of an offence and shall be liable--

(a) on conviction on indictment, to a fine; and

(b) on summary conviction, to a fine not exceeding the statutory maximum.

(8) The central office shall keep a copy of a direction given to a friendly society under this section in the public file of the society.

52 Applications to court

(1) Where the Commission has reason to believe that any of the conditions mentioned in subsection (2) below is satisfied, it may present a petition to the High Court for the winding up of the society under the applicable winding up legislation.

(2) The conditions referred to in subsection (1) above are--

(a) that a friendly society is carrying on activities that are not activities which such a society is permitted by this Act or the 1974 Act to carry on;

(b) that the society is not carrying on any activity falling within Schedule 2 to this Act;

(c) that the society is failing to satisfy an obligation to which it is subject by virtue of any provision of the law of another member state giving effect to the general insurance or the life Directives;

(d) that a subsidiary of an incorporated friendly society or a body jointly controlled by such a society is carrying on activities other than those mentioned in Schedule 7 to this Act;

and a court shall not make an order for the winding up of a society by virtue of this section unless it is satisfied that one or more of those conditions is satisfied.

(3) Where the Commission has reason to believe that any of the conditions mentioned in subsection (4) below is satisfied, it may make an application to the High Court for an order under subsection (5) below.

(4) The conditions referred to in subsection (3) above are--

(a) any of the conditions mentioned in subsection (2) above; or

(b) that an incorporated friendly society has taken part in forming or has acquired control of a body corporate jointly with any person other than another incorporated friendly society without the consent of the Commission;

and a court shall not make an order under subsection (5) below unless it is satisfied that one or both of the conditions mentioned in this subsection is satisfied.

(5) An order under this subsection is an order directing the society to modify its business as directed in the order or to take such other steps as may be so directed or, where the condition mentioned in subsection (4)(b) above is satisfied, an order directing the society to cease jointly controlling the body corporate.

(6) Where a court makes an order under subsection (5) above, the Commission shall send a copy of it to the central office and the central office shall keep the copy in the public file of the society.

(7) The power to present a petition or to make an application for an order under subsection (5) above is available to the Commission whether or not it has previously presented a petition or made an application for such an order, as the case may be.

(8) In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, references to the High Court shall be read as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.

(9) In this section "the applicable winding up legislation", in relation to an incorporated friendly society, has the same meaning as in section 23 above and, in relation to a registered friendly society, means Part V of the [1986 c. 45.] Insolvency Act 1986 or (where the society's registered office is in Northern Ireland) Part VI of the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989.

53 Residual power to impose requirements for protection of members

(1) If the Commission considers it expedient to do so in order to protect the interests of members of a friendly society which does not require authorisation under section 32 above, it may direct the society to take such action as appears to the Commission to be appropriate, having regard to any risk--

(a) that the society may be unable to meet its liabilities; or

(b) that it will not be managed in the interests of its members.

(2) The power conferred by this section shall not be exercised in such a way as to restrict the society's freedom to dispose of its assets except where the ground for intervention arises out of the submission by the society to the Commission of an account or statement specifying, as the amount of any liabilities of the society, an amount appearing to the Commission to have been determined otherwise than in accordance with--

(a) valuation regulations; or

(b) where no such regulations are applicable, generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for friendly societies.

54 Supervision of activities of subsidiaries etc

(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 Commission 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 Commission 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 when the society is to comply with it and may do so by reference to a date, the end of a period or the happening of an event.

(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.

(6) The Commission may by notice to the society vary or revoke a direction under this section.

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

(8) The Commission may issue to incorporated friendly societies (or to any description of such societies) such general guidance as it thinks appropriate as to circumstances in which a direction under this section is or is not likely to be given.

(9) The Commission shall send to the central office a copy--

(a) of a direction under this section;

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

and the central office shall keep a copy in the public file of the society.

55 Supervision of group insurance business

(1) This section applies where a friendly society carries on any group insurance business providing benefits for or in respect of a group of persons who are not members of the society.

(2) If it appears to the Commission that the business so carried on is or may become disproportionate to the other activities of the society (including any group insurance business carried on for the provision of benefits for or in respect of persons who are members of the society), it may direct the society to take or refrain from taking steps specified in the direction with a view to securing that the group business in question ceases to be or does not become disproportionate.

(3) Subsections (4) to (9) of section 54 above shall apply in relation to a direction under this section as they apply to a direction under that section.

56 Linked long-term insurance contracts

(1) Regulations may be made by the Commission, with the consent of the Treasury, as respects the matters specified in subsection (2) below, in relation to contracts made by friendly societies the effecting of which constitutes the carrying on of insurance business falling within class III in head A in Schedule 2 to this Act.

(2) Regulations under this section may make provision for--

(a) restricting the descriptions of property or the indices of the value of property by reference to which benefits under the contracts may be determined;

(b) restricting the proportion of those benefits which may be determined by reference to property of a specified description or a specified index;

(c) regulating the manner in which and the frequency with which property of any description is to be valued for the purpose of determining those benefits and the times at which reference is to be made for that purpose to any index of the value of property;

(d) requiring friendly societies that enter into such contracts to appoint valuers for carrying out valuations of property of any description for the purpose of determining benefits under the contracts (being valuers who comply with the prescribed requirement as to qualifications and independence from the society) and to furnish the Commission with the prescribed information in relation to such appointments;

(e) requiring societies that enter into such contracts to furnish in such manner and at such times or intervals as may be prescribed such information relating to the value of the benefits under the contracts as may be prescribed, whether by sending notices to their members, depositing statements with the Commission, publication in the press or otherwise;

(f) requiring societies that enter into such contracts to furnish to the Commission in such manner and at such times or intervals as may be prescribed, such information certified in such manner as may be prescribed with respect to so much of their business as is concerned with the contracts or with any class or description of the contracts, and enabling the Commission to publish such information in such ways as it thinks appropriate.

(3) Regulations made for the purposes of subsection (2)(e) above may, in relation to notices required to be sent to members of friendly societies, impose requirements (whether as to type, size, colour or disposition of lettering, quality or colour of paper, or otherwise) for securing that such notices are easily legible.

(4) The Commission may, on the application of any friendly society, alter the requirements of regulations under this section so as to adapt those requirements to the circumstances of that society or to any particular kind of contract entered into or proposed to be entered into by that society.

(5) Regulations under this section may, to such extent as may be specified in them, apply in relation to contracts entered into before the coming into operation of the regulations, including contracts entered into before the passing of this Act.

(6) In this section "prescribed" means prescribed by regulations under this section.

Covering of risks situated in another member State

57 Covering of risks situated in another member State

(1) Where a friendly society intends to cover any insurance risks falling within any class of Head B of Schedule 2 to this Act which are situated in a member State other than the United Kingdom--

(a) through an establishment in the United Kingdom, or

(b) through an establishment in a member State other than that in which the risks will be situated,

it shall before doing so give notice of its intention to the Commission.

(2) The notice shall indicate--

(a) the member State in which the insurance is to be provided;

(b) the nature of the risks which the society intends to cover;

(3) Where the society intends to cover risks situated in more than one member State, the information specified above may be contained in a single notice but must be set out separately for each member State.

(4) Where a society has duly notified the Commission of its intention to cover risks situated in another member State where administrative authorisation is required to do so then, if the original notice related--

(a) only to risks in respect of which such authorisation is required; or

(b) only to risks in respect of which such authorisation is not required,

and the society subsequently intends to extend its activities to risks falling within the other category, it shall before doing so (without prejudice to the generality of the preceding provisions of this section) comply with subsections (1) to (3) above in relation to those risks.

(5) A friendly society with the intention mentioned in subsection (1) above may apply to the Commission for a certificate attesting--

(a) that the society possesses the minimum margin of solvency calculated in accordance with Article 16 and 17 of the first general insurance Directive, and

(b) that by virtue of this Act and the society's authorisation under section 32 above, issued in accordance with Article 7(1) of that Directive, the society is able to operate outside the member State of establishment.

(6) A friendly society with the intention mentioned in subsection (1) above in respect of risks to be covered through an establishment in the United Kingdom may apply to the Commission for a certificate--

(a) indicating the classes of insurance business which the society is authorised to carry on in the United Kingdom; and

(b) stating that the Commission does not object to the society covering the risks through such an establishment.

(7) The Commission shall, if it thinks an application under subsection (5) or (6) above ought to be granted, issue the certificate.

(8) If the Commission refuses such an application it shall give notice to the society of its decision and of the reasons for it.

(9) Expressions used in this section which are defined in section 81A or 96A of the [1982 c. 50.] Insurance Companies Act 1982 have the same meanings as they have for the purposes of that Act.

Appeals

58 Rights of appeal

(1) A friendly society which is aggrieved by a decision of the Commission--

(a) to refuse to grant authorisation under section 32 above,

(b) to impose conditions, or as to the conditions imposed, under section 34 or 36 above,

(d) to give a direction under section 51 above; or

(e) to give a direction to the society, or as to the steps specified in a direction, under section 54 or 55 above,

may appeal against the decision to a tribunal constituted in accordance with section 59 below.

(2) Any person in relation to whom the Commission, in deciding to refuse to grant authorisation, to impose conditions or to withdraw authorisation--

(a) makes a determination that he is not a fit and proper person to hold or, as the case may be, to remain in an office in the society in question, or

(b) imposes a requirement that he be removed from an office in the society,

may appeal against the decision so far as it relates to that determination or requirement.

(3) The withdrawal of a society's authorisation shall not have effect--

(a) until the end of the period within which an appeal can be brought against the Commission's decision to withdraw that authorisation; and

(b) if such an appeal is brought, until it is determined or withdrawn.

(4) Where the Commission decides to refuse to grant authorisation to a society on an application made in pursuance of a direction under section 39 above, the society's authorisation shall not expire under subsection (5) of that section--

(a) until the end of the period within which an appeal can be brought against the decision not to grant authorisation; and

(b) if such an appeal is brought, until it is determined or withdrawn.

(5) A direction under section 51, 54 or 55 above shall not have any effect until--

(a) the end of the period within which an appeal can be brought against the Commission's decision to give the direction or as to any steps specified in the direction; and

(b) if such an appeal is brought, until it is determined or withdrawn.

(6) Subject to any order of the tribunal made under section 59(6) below, an appeal under subsection (1)(b) or (2) above shall not affect the operation, pending the determination of the appeal, of any condition which is the subject of the appeal.

(7) Subject to subsection (8) below, no determination of an appeal brought by any person under subsection (2) above shall affect any decision of the Commission on the ground of (or on grounds including) the determination made in relation to that person or, as the case may be, the failure of the society to comply with the requirement imposed in relation to that person.

(8) The tribunal may revoke a decision of the Commission to impose a condition which is the subject of an appeal under subsection (2) above in so far as it seeks to prevent the person making the appeal from holding, or continuing to hold, office in the society.

59 Determination of appeals

(1) Where an appeal is brought under section 58 above, a tribunal to determine the appeal shall be constituted in accordance with subsection (2) below.

(2) The tribunal shall consist of--

(a) a chairman appointed by the Lord Chancellor or, where the society concerned has its registered office in Scotland, by the Lord Chancellor in consultation with the Lord Advocate; and

(b) two other members appointed by the Treasury.

(3) The chairman shall be a person who--

(a) has a seven year general qualification, within the meaning of the [1990 c. 41.] Courts and Legal Services Act 1990;

(b) is an advocate or solicitor in Scotland of at least seven years' standing; or

(c) is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least seven years' standing;

and the other two members shall be persons appearing to the Treasury to have experience of accountancy, the business of insurance or the business of friendly societies.

(4) Subject to subsection (5) below, on any appeal against a decision of the Commission the question for the determination of the tribunal shall be whether, for the reasons adduced by the appellant, the decision was unlawful or not justified by the evidence on which it was based.

(5) In the case of an appeal against a decision to give a direction under section 54 or 55 above--

(a) the tribunal shall, on the evidence adduced before it, reconsider the decision to give the direction and the steps specified in the direction (according to the extent of the appeal);

(b) if the tribunal determines that such a direction should not be given, it shall reverse the decision; and

(c) if the tribunal determines that those steps should not be so specified, it may give the Commission such guidance as it thinks fit as to what the appropriate steps might be.

(6) The tribunal may, on the application of the friendly society concerned, order that the operation of any condition which is the subject of an appeal by the society be suspended pending the determination of the appeal.

(7) The tribunal may confirm or reverse the decision which is the subject of the appeal but shall not have power to vary it except by directing the Commission--

(a) in the case of an appeal against a decision to refuse to grant authorisation, to determine conditions to which the grant of authorisation is to be subject;

(b) in the case of an appeal against the imposition of conditions or as to the conditions imposed by the decision, to determine conditions or different conditions subject to which the authorisation is to be granted or is to continue, as the case may be;

(c) in the case of an appeal against a decision to withdraw authorisation, to determine conditions or different conditions subject to which the authorisation is to continue in force, as the case may be;

(d) in the case of an appeal against a decision as to the steps specified in a direction under section 54 or 55 above, to determine, having taken account of any guidance given under subsection (5) above, the steps which are to be so specified.

(8) Where by virtue of subsection (7)(d) above the tribunal directs the Commission to determine the steps to be specified in the direction, the society may appeal against the steps so specified.

(9) Where by virtue of subsection (7) above the tribunal directs the Commission to determine conditions or different conditions--

(a) the Commission shall in accordance with section 34 or 36 above impose such conditions as it thinks fit; and

(b) paragraphs 7 and 8 of Schedule 13 to this Act shall apply subject to the modifications made by paragraph 9 of that Schedule;

and the society may appeal to the tribunal against any condition so imposed.

(10) On any such appeal the tribunal may confirm or reverse the Commission's decision with respect to the conditions which are the subject of the appeal or may direct the Commission to determine different conditions; and where by virtue of this subsection the tribunal directs the Commission to determine different conditions, subsection (9) above shall apply as it applies where the tribunal gives such a direction by virtue of subsection (7) above.

(11) Where the tribunal reverses a decision of the Commission to refuse to grant authorisation, it shall direct the Commission to grant it; and where the tribunal reverses a decision of the Commission to make the grant of authorisation subject to conditions, it shall direct the Commission to grant it unconditionally.

(12) Notice of a tribunal's determination, together with a statement of its reasons, shall be given to the appellant and to the Commission; and unless the tribunal has directed the Commission to determine conditions or, in any other case, the tribunal directs otherwise, the determination shall come into operation when the notice is given to the appellant.

(13) The Treasury may out of money provided by Parliament pay to the persons appointed as members of a tribunal under this section such fees and allowances in respect of expenses as the Treasury may determine and any other expenses incurred for the purposes of this section.

60 Costs, procedure and evidence

(1) A tribunal may give such directions as it thinks fit for the payment of costs or expenses by any party to an appeal.

(2) On an appeal under section 58(2) above the friendly society in relation to which the determination was made, or upon which the requirement was imposed, shall be entitled to be heard.

(3) The Treasury may make regulations with respect to appeals under section 58 above; and those regulations may in particular make provision--

(a) as to the period within which and the manner in which such appeals are to be brought;

(b) as to the manner in which such appeals are to be conducted, including provision for any hearing to be held in private;

(c) for requiring any person, on tender of the necessary expenses of his attendance, to attend and give evidence or produce documents in his custody or under his control and for authorising the administration of oaths to witnesses;

(d) for granting to any person such discovery or inspection of documents or right to further particulars as might be granted by a county court in England and Wales or Northern Ireland or, in Scotland, for granting to any person such recovery or inspection of documents as might be granted by the sheriff;

(e) for enabling an appellant to withdraw an appeal or the Commission to withdraw its opposition to an appeal and for the consequences of any such withdrawal;

(f) for taxing or otherwise settling any costs or expenses directed to be paid by the tribunal and for the enforcement of any such direction;

(g) for enabling any functions in relation to an appeal to be discharged by the chairman of the tribunal; and

(h) as to any other matter connected with such appeals.

(4) Regulations under this section with respect to appeals where the friendly society concerned has its registered office in Scotland shall be made by the Lord Advocate.

(5) A person who, having been required in accordance with regulations under this section to attend and give evidence, fails without reasonable excuse to attend or give evidence shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(6) A person who intentionally alters, suppresses, conceals, destroys or refuses to produce any document which he has been required to produce in accordance with regulations under this section, or which he is liable to be so required to produce, shall be liable--

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both;

(b) on summary conviction, to a fine not exceeding the statutory maximum.

61 Further appeals on points of law

(1) An appeal shall lie to the High Court at the instance of the friendly society or other person concerned or of the Commission on any question of law arising from any decision of a tribunal under section 59 above; and if the court is of the opinion that the decision was erroneous in law, it shall remit the matter to the tribunal for re-hearing and determination by it.

(2) In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, references to the High Court shall be construed as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.

(3) No appeal to the Court of Appeal or to the Court of Appeal in Northern Ireland shall be brought from a decision under subsection (1) above except with the leave of that court or of the court or judge from whose decision the appeal is brought.

(4) An appeal shall lie, with the leave of the Court of Session or the House of Lords, from any decision of the Court of Session under this section, and such leave may be given on such terms as to costs, expenses or otherwise as the Court of Session or the House of Lords may determine.

Information

62 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 Commission 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 Commission 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 Commission 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 Commission 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 Commission considers it needs for the purposes of its supervisory functions;

(d) to furnish to it, within a specified period, a report by an accountant or actuary approved by the Commission on, or on specified aspects of, information or documents or other material furnished or produced to the Commission.

(4) Where by virtue of subsection (3)(a), (b) or (c) above the Commission 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 Commission shall have the like power as regards any person who--

(a) is or has been an officer, employee or agent of the society, or

(b) in the case of documents or material, appears to the Commission 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 Commission 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 Commission 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 Commission to have the document or material in his possession or under his control.

(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--

(a) by a barrister, solicitor, advocate or licensed conveyancer 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 him or to him in that capacity or the furnishing of information contained in such communication so made;

(b) by a person who is not a barrister or solicitor of a document or material contained in a communication made by him or to him which is privileged by virtue of section 63 of the [1990 c. 41.] Courts and Legal Services Act 1990 or the furnishing of information contained in such a communication; or

(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 [1990 c. 40.] Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 or the furnishing of information contained in such a communication.

(8) Where, by virtue of subsection (3), (4) or (5) above, the Commission requires the production by a friendly society or other body or any other person of documents or material, the Commission 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 one tenth of that level 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.

63 Confidentiality of certain information

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16

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