No scheme established by rules under section 54 shall apply in cases where persons who are or have been regulated friendly societies are unable, or likely to be unable, to satisfy claims in respect of any description of civil liability incurred by them in connection with any regulated business but F2the Commission may, with the consent of the Secretary of State, by rules establish a scheme for compensating investors in such cases.

Subject to sub-paragraph (3) below, subsections (2) to (4) and (6) of that section shall apply in relation to such rules as they apply to rules under that section but with the substitution for the references to the Secretary of State, authorised persons, members and a recognised self-regulating organisation of references respectively to F2the Commission, regulated friendly societies, member societies and a recognised self-regulating organisation for friendly societies.

Subsection (3) of that section shall have effect with the substitution for the words “the Secretary of State is satisfied" of the words “ F2the Commission and the Secretary of State are satisfied".

The references in section 179(3)(b) and 180(1)(e) of this Act to the body administering a scheme established under section 54 of this Act shall include the body administering a scheme established under this paragraph.