Financial Intermediaries Act 1996

The registrar may act under subsection (2) if the registrar considers that it is necessary to do so—

in the interests of members, or persons who may become members, of a society; or

because a society has failed to comply with a standard.

The registrar may, by written notice given to the society, direct the society not to do all or any of the following—

give financial accommodation to members;

raise funds;

grant security over the society’s assets.

A notice under subsection (2) continues in force until it expires or is withdrawn by the registrar.

The registrar may, by a further written notice given to the society—

extend the period for which a notice under subsection (2) is to have force; or

amend the terms of the notice; or

withdraw the notice.

If a society fails to comply with a notice under this section, the society and any officer of the society who is in default each commit an offence.

Subsection (5) does not apply if the failure to comply happens with the registrar’s written permission.