Part V Regulation of Friendly Societies’ Business
Powers of F11FCA and PRA
I152 Applications to court.
F131
If the FCA has reason to believe that any of the conditions mentioned in subsection (2) is satisfied, it may, after consulting the PRA if the society is a PRA-authorised person—
a
present a petition to the High Court for the winding up of the society under the applicable winding up legislation;
b
make an application to the High Court for an order under subsection (5).
1A
If the PRA has reason to believe that any of the conditions mentioned in subsection (2) is satisfied in relation to a society which is a PRA-authorised person, it may, after consulting the FCA—
a
present a petition to the High Court for the winding up of the society under the applicable winding up legislation;
b
make an application to the High Court for an order under subsection (5).
2
The conditions referred to in F7subsections (1) and (1A) 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;
F1c
that the society is failing to satisfy any obligation to which it is subject by virtue of any provision of the law of any EEA State F12... which–
i
gives effect to F9the Solvency 2 Directive; or
ii
is otherwise applicable to the insurance activities of the society in that State;
F2d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
F63
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F34
A court may not make an order under subsection (5) unless it is satisfied that one or more of the conditions mentioned in subsection (2) are 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 F4....
6
7
The power to present a petition or to make an application for an order under subsection (5) above is available to the F10FCA and the PRA whether or not either of them 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 M1Insolvency Act 1986 or (where the society’s registered office is in Northern Ireland) Part VI of the M2Insolvency (Northern Ireland) Order 1989.
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)