3.6 3.6 Obligations of registration
Once registered, a society must keep proper accounts, submit an annual return to the FCA, and let the FCA know of any change relating to its registered office. It must also apply to the FCA to amend any of its rules or to change its name. Amendments are not valid until they are registered and approved by the FCA. Societies are legally obliged to be run strictly in accordance with their registered rules, and to inform the FCA if they no longer wish to be registered.
Registered societies are required to make annual returns to the FCA. There is a standard form that should be completed by the society’s secretary and returned to the FCA within seven months of the society’s financial year end. The form must be accompanied by a set of accounts. If the turnover of the society exceeds £5.6m (or £250,000 if the society has charitable objects), or its assets exceed £2.8m, these accounts must be subjected to a full professional audit. This also applies to any society that is a subsidiary, any society that has subsidiaries, or any society engaged in deposit-taking activities.
Societies with a turnover not exceeding £5.6m, or assets not exceeding £2.8m, can, if their rules permit it, and a resolution has been passed at their AGM, get exemption from a full professional audit, and instead submit an accountant’s report verifying the accounts. Unaudited accounts, verified by the board, can be submitted if the turnover does not exceed £90,000. If the society’s turnover and assets are below £5,000, and it has fewer than 500 members, then it can resolve to submit a lay audit, verified by someone who is not a director or officer of the society.
All registered societies also have to pay an annual fee to the FCA, known as a periodic fee. This fee is on a sliding scale, currently ranging from £55 for organisations with total assets not exceeding £50,000, up to £425 for societies with total assets exceeding £1m.
In Scotland, charitable community benefit societies must comply with the requirements of both the FCA and with the Scottish Charity Regulator’s monitoring arrangements, which includes the submission of annual accounts (see www.oscr.org.uk/charities/managing-yourcharity/annual-monitoring). The Scottish Charity Regulator operates a consent and notification regime which charitable community benefit societies should make themselves familiar with. This includes seeking consent to change their name or purposes. (see www.oscr.org.uk/charities/managing-your-charity/making-changes-to-your-charity)
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