Section 54 Supervision of activities of subsidiaries etc.I1

United Kingdom

(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 F1FCA or the PRA 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 FCA or the PRA 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 F2that the society is to comply with it—.

(a)

immediately on receipt of a final notice in relation to the direction;

(b)

before the end of such period as may be specified in the direction, beginning with the giving of a final notice in relation to the direction; or

(c)

on the happening of an event subsequent to the giving of such a notice.

(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.

F3(6)

The F4FCA or the PRA may by written notice to the society—

(a)

vary a direction F5issued by it under this section at the request of the society; or

(b)

revoke a direction issued by it under this section.

F6(6A)

The FCA must consult the PRA before issuing a direction under this section to a PRA-authorised person or varying such a direction.

(6B)

The PRA must consult the FCA before issuing or varying a direction under this section.

F7(7)

If a society requests the FCA or the PRA to notify the society as to whether, in the opinion of that authority, it has complied with a direction issued by that authority, the FCA or the PRA (as the case may be) must comply with the request.

(7A)

The PRA must send a copy to the FCA of any direction, notice, final notice or notification it issues under this section.

F8(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)

The F9F10FCA shall keep a copy—

(a)

of a direction under this section;

(b)

of a notice under subsection (6) above; or

F11(ba)

of a final notice varying a direction under this section;

(c)

of a notification under subsection (7) above;

F12. . . in the public file of the society.

F13(10)

“Final notice" means a final notice given under section 390 of the Financial Services and Markets Act 2000, as applied by section 58A(6) below.

Annotations

Textual amendments

F1: Words in s. 54(2)(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(2) (with Sch. 12)
F2: S. 54(4): Words and paras. (a)-(c) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F3: S. 54(6) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(c) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F4: Words in s. 54(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(3)(a) (with Sch. 12)
F5: Words in s. 54(6) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(3)(b) (with Sch. 12)
F6: S. 54(6A)(6B) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(4) (with Sch. 12)
F7: S. 54(7)(7A) substituted for s. 54(7) (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(5) (with Sch. 12)
F8: S. 54(8) repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5)
F9: Words in s. 54(9) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(e)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F10: Word in s. 54(9) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 18(6) (with Sch. 12)
F11: S. 54(9)(ba) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(e)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F12: Words in s. 54(9) repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5)
F13: S. 54(10) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 71(f) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

Commencement

I1: S. 54 wholly in force; s. 54 not in force at Royal Assent see s. 126(2); s. 54 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 54 in force for all remaining purposes at 28.4.1993 by S.I. 1993/1186, art. 2(2), Sch. 2

Notes on Powers of FCA and PRA

Textual amendments

F1: Words in s. 51 cross-heading substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 16 (with Sch. 12)