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Part XU.K. General and Supplementary

InterpretationU.K.

116 Friendly societies etc.U.K.

In this Act—

Commencement Information

I1Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

117 Insurance business etc.U.K.

(1)For the purposes of this Act—

(2)For the purposes of any provision of Parts IV, V, VI and VIII of this Act, unless the context otherwise requires—

(a)references to insurance business include references to reinsurance business; and

(b)reinsurance business consisting of the effecting and carrying out of a contract of reinsurance of risks of any class shall be taken to constitute the carrying on of insurance business of that class;

and “reinsurance business” means the effecting and carrying out of contracts of reinsurance.

(3)For the purposes of this Act the effecting and carrying out of a contract whose principal object is within one class of insurance business, but which contains related and subsidiary provisions within another class or classes, shall be taken to constitute the carrying on of insurance business of the first-mentioned class, and no other, if subsection (4) or (5) below applies to the contract.

(4)This subsection applies to a contract whose principal object is within any class of long term business, but which contains subsidiary provisions within general business class 1 or 2, if the society concerned is authorised under section 32 above to carry on long term business class I.

(5)This subsection applies to a contract whose principal object is within one of the classes of general business but which contains subsidiary provisions within another of those classes.

[F4(6)In relation to a contract of insurance entered into by a person on any date with a friendly society to which section 37(3) above applies the effecting of which constitutes general business, or a contract of insurance entered into by a person on any date with a friendly society to which section 37(2) above applies the effecting of which constitutes long term business, references in this Act to the [F5member or EEA State] where the risk or commitment is situated shall be construed as follows—

(a)where that person is an individual, as references to the [F5member or EEA State] where he has his habitual place of residence on that date; and

(b)in any other case, as references to the [F5member or EEA State] where the establishment of that person to which the contract relates is situated on that date.

(7)In relation to any other contract of insurance with a friendly society, references in this Act to the member State where the risk is situated shall be construed as references to the member State where the person who has entered into the contract has his habitual place of residence.]

F6(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(9)In this Act “establishment", in relation to a friendly society to which section 37(2) or (3) above applies, means the registered office or an overseas branch of the society.

Any permanent presence of such a society in an EEA State other than the United Kingdom shall be regarded for those purposes as a single overseas branch, whether that presence consists of a single office which, or two or more offices each of which–

(a)is managed by the society’s own staff;

(b)is an agency of the society; or

(c)is managed by a person who is independent but has permanent authority to act for the society in the same way as an agency.]

Textual Amendments

F1Definition in s. 117(1) inserted (1.1.1994) by S.I. 1993/2519, reg. 7(1)

F2Words in definition in s. 117(1) 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. 114 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F3Definition in s. 117(1) added (1.9.1994) by S.I. 1994/1984, reg. 29(1)

F4S. 117(6)(7) substituted for s. 117(6) (1.1.1994) by S.I. 1993/2519, reg. 7(2)

F5Words in s. 117(6) substituted (1.9.1994) by S.I. 1994/1984, reg. 29(2)

F6S. 117(8) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 205(1)

F7S. 117(9) inserted (1.9.1994) by S.I. 1994/1984, reg. 29(3)

Commencement Information

I2Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

118 Financial year of friendly societies.U.K.

(1)Subject to subsection (2) below, in this Act “financial year” means the period of 12 months ending with 31st December.

(2)The initial financial year of a friendly society shall be such period as expires with the end of the calendar year in which it is registered under the 1974 Act or incorporated under this Act and the final financial year of the society shall be such shorter period than 12 months as expires with the date as at which the society makes up its final accounts.

Commencement Information

I3Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

119 General interpretation.U.K.

(1)In this Act, unless the context otherwise requires—

[F29(1AA)Any reference in this Act to the seal of the Authority is a reference to the seal provided for in regulations made under section 109(1)(b) of the Friendly Societies Act 1974 (and not to the Authority’s common seal).]

[F30(1A)References in this Act to the first or third general insurance DirectiveF31... are references to that Directive as amended by the [F32European Parliament and Council Directive of 29th June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, [F33Directives 72/239/EEC and 92/49/EEC in the field of non-life insurance], Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (UCITS) with a view to reinforcing prudential supervision (No. 95/26/EC)].]

F34(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F35(1C)In the definition of “supervisory authority” in subsection (1), the reference to contracts of insurance and to effecting or carrying out such contracts must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

(2)References in this Act to the “ECU” are to the unit of account of that name defined in Council Regulation (EEC) No.3180/78 as amended; and the exchange rates as between the ECU and pounds sterling to be applied for each year beginning on 31st December shall be the rates applicable on the last day of the preceding October for which exchange rates for the currencies of all the member States were published in the Official Journal of the Communities.

Textual Amendments

F8Words in the definition of “actuary” in s. 119(1) 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. 115(a)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F9Definition of “the authority” in s. 119(1) 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. 115(a)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F10Words in the definition of “appointed actuary” in s. 119(1) 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. 115(a)(iii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F11S. 119(1): Words in para. (a) of the definition of “appropriate actuary” 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. 115(a)(iv)(A) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F12S. 119(1): Words in para. (b) of the definition of “appropriate actuary” 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. 115(a)(iv)(B) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F13Definitions of “the central office”, “the Chief Registrar”, “collecting society”, “the Commission”, “the criteria of prudent management” and “notifiable voting rights” in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F15S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984 reg. 30(a)

F16S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984, reg. 30(b)

F17O.J. L1, 3.1.94, page 3.

F18O.J. L1, 3.1.94, page 572.

F20S. 119(1): definition substituted (1.9.1994) by S.I. 1994/1984 reg. 30(c)

F21S. 119(1): definitions of “the life Directives” and “manager” substituted for definition of “the life Directives” (1.9.1994) by S.I. 1994/1984, reg. 30(d)

F22Words in the definition of “the public file” in s. 119(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by The Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 (S.I. 2001/2617), arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(vi) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F23Words in s. 119(1) inserted (1.9.1994) by S.I. 1994/1984, reg. 30(f)

F24Words in the definition of “supervisory authority” in s. 119(1) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 205(3)

F25O.J. L228, 11.8.92, page 1.

F26O.J. L228, 16.8.73, page 3.

F27O.J. L172, 4.7.88, page 1.

F28Words in s. 119(1) omitted (17.8.2001 for specified purposes and 1.12.2001 for all other purposes) by virtue of The Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 (S.I. 2001/2617), arts. 2, Sch. 3 para. 115(a)(vii), Sch. 4 (with art. 13(3), Sch. 5)

Commencement Information

I4Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

Marginal Citations

[F36119A Meaning of “associate".U.K.

(1)In this Act “associate", in relation to any person entitled to exercise or control the exercise of voting power in relation to a friendly society to which section 37(2) or (3) above applies, means–

(a)the wife or husband or minor son or daughter of that person;

(b)any company of which that person is a director;

(c)any person who is an employee or partner of that person;

(d)if that person is a company–

(i)any director of that company;

(ii)any subsidiary undertaking of that company;

(iii)any director or employee of any such subsidiary under– taking; and

(e)if that person has made an agreement or arrangement with any other person under which they undertake to act together in exercising their voting power in relation to the society, that other person.

(2)In this section–

“minor", in relation to Scotland, means not having attained the age of sixteen;

“son" includes stepson and “daughter" includes stepdaughter;

“subsidiary undertaking" has the same meaning as in the Insurance Companies Act 1982 M2.]

Textual Amendments

F36S. 119(A) inserted (1.9.1994) by S.I. 1994/1984 reg. 31

Marginal Citations

F37119B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments