http://www.legislation.gov.uk/id/ukpga/1992/40

F1Part I Functions of the F206Financial Conduct Authority and the Prudential Regulation Authority

Annotations:

Amendments (Textual)

Pt. 1 (s. 1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for Pt. 1 (ss. 1-4) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 Pt. 1 para. 54 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F206

Words in Pt. 1 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. 2 (with Sch. 12)

F11F345Functions of the Financial Conduct Authority and the Prudential Regulation Authority in relation to friendly societies

1

The F199Financial Conduct Authority (“the FCA”) has the following functions under this Act and the 1974 Act in relation to friendly societies—

a

to secure that the purposes of each friendly society are inconformity with this Act and any other enactment regulating the purposes of friendly societies;

b

to administer the system of regulation of the activities of friendly societies provided for by or under this Act and the 1974 Act; and

c

to advise and make recommendations to the Treasury and other government departments on any matter relating to friendly societies.

F2181A

The function in subsection (1)(c) is also a function of the Prudential Regulation Authority (“the PRA”).

2

The F214FCA and the PRA also have, in relation to such societies, the other functions conferred on F194them respectively by or under this Act or any other enactment.

F12 Financial provision for Commission.

1

There shall be charged on friendly societies such a general charge towards the expenses of the Commission and such fees in respect of the exercise of its functions as are authorised under this section.

2

The Treasury may, by regulations, make provision for—

a

a general charge to be levied on friendly societies with respect to each accounting year of the Commission and to be paid at such rate computed by reference to such criteria, at such time and in such manner as may be prescribed by the regulations; and

b

fees of such amounts as may be so prescribed to be paid by friendly societies in respect of the exercise of the Commission’s functions in relation to them.

3

The provision to be made from time to time under subsection (2) above, by way of the general charge and fees, shall be such as to produce an annual revenue of the Commission sufficient to meet its expenses properly chargeable to revenue account, taking one year with another.

4

Regulations under subsection (2) above may include provision for any fees payable by societies to be reduced or for payment of any fees to be waived by the Commission in circumstances determined by or under the regulations.

5

The amounts received by the Commission under this section shall be applied as an appropriation in aid of money provided by Parliament for the expenses of the Commission, and in so far as not so applied, shall be paid into the Consolidated Fund.

6

In this Part of this Act “accounting year”, in relation to the Commission, means the period of 12 months ending with 31st March in any year, except that the Commission’s first accounting year shall end on 31st March 1993.

F13 Accounts of Commission and audit.

1

The Commission shall keep proper accounts and proper accounting records and shall prepare in respect of each accounting year a statement of accounts in such form as the Treasury may direct.

2

The statement of the accounts required by subsection (1) above may be combined with the statement of the accounts of the Chief Registrar which he is required to prepare as regards his functions.

3

The Commission shall send to the Treasury and to the Comptroller and Auditor General, before the end of the period of seven months after the end of each accounting year, a copy of the statement of accounts for that year.

4

The Comptroller and Auditor General shall examine, certify and report on every statement of accounts received by him from the Commission and shall lay a copy of the statement and of his report thereon before each House of Parliament.

F14 Annual and other reports.

1

It shall be the duty of the Commission to lay before the Treasury and before Parliament as soon as possible after the end of each accounting year a report on the discharge of its functions during that year.

2

The Commission may lay before Parliament from time to time such other reports relating to the discharge of its functions, whether in relation to friendly societies generally or a particular friendly society, as it thinks fit.

Part II Incorporated Friendly Societies

b

the memorandum of the purposes and extent of the powers of, and the rules for the regulation of, such societies,

c

the name and registered office of such societies,

and certain incidents of membership of incorporated friendly societies.

7

In this Part of this Act references to the permitted capacity of incorporated friendly societies under this Act are to the capacity to carry on all the activities mentioned in section 7(2) below.

6 Incorporation of registered friendly societies.

1

A registered friendly society may be registered and incorporated under this Act if—

a

the conditions mentioned in section 5(2) above are satisfied by reference to the society’s proposed memorandum; and

b

the society complies with the requirements in Schedule 3 to this Act which are applicable to its registration under this Act;

and such a society is so incorporated as from the date of its registration by the F324FCA.

2

On the incorporation of a registered friendly society all property held immediately before incorporation by any person in trust for the society shall become by virtue of this subsection the property of the society after incorporation.

3

After its incorporation the society shall continue to be entitled to all rights and subject to all liabilities to which it was entitled or subject immediately before incorporation.

4

On the incorporation of a registered society with registered or unregistered branches—

a

all property held immediately before incorporation by any person in trust for any branch of the society, and

b

all rights and liabilities to which any such branch was then entitled or subject,

shall, subject to subsection (5) below, become by virtue of this subsection property, rights and liabilities of the society.

5

A registered friendly society may (in accordance with paragraph 2 of Schedule 4 to this Act) make a scheme identifying any property, rights or liabilities of any branch of the society which are not to be transferred to the society on its incorporation; and any such property, rights or liabilities shall be excluded from transfer under subsection (4) above.

6

On the incorporation of a registered friendly society, its registration under the 1974 Act and that of any registered branch of the society shall be cancelled by the F324FCA.

7

Schedule 4 to this Act shall have effect for supplementing this section.

7 Purposes and powers of an incorporated friendly society.

1

The purposes of an incorporated friendly society shall be those provided for by the society’s memorandum.

2

The purposes for which an incorporated friendly society may exist are—

a

the carrying on, subject to section 5(2)(b) above, of—

i

any business of any description falling within a class specified in Head A or B or within Head C of Schedule 2 to this Act, or

ii

any activity falling within Head D of that Schedule; and

b

the carrying on, in addition to any business or activity falling within paragraph (a) above, of any of the following, namely—

i

social or benevolent activities in accordance with section 10 below;

ii

group insurance business in accordance with section 11 below;

iii

reinsurance, in accordance with section 12 below, of risks insured by other friendly societies;

iv

control or joint control of bodies corporate in accordance with section 13 below;

and the memorandum of an incorporated friendly society may also confer on the society power to do anything falling within Schedule 5 to this Act.

3

The memorandum of an incorporated friendly society may confer on it any other power specified in this Part of this Act, but no such power may be exercised except for carrying out the society’s purposes.

4

An incorporated friendly society shall, subject to the provisions of this Act, its memorandum and its rules, have any other power which is incidental or conducive to the carrying out of its purposes or for doing anything falling within Schedule 5 to this Act.

5

Nothing in this Act shall be taken as preventing an incorporated friendly society from providing in its rules—

a

for such system of representation of the members in the making of decisions by the society as the society may think fit;

b

for the division of the society’s members into groups under the control of the society and bound to contribute to the funds of the society but, subject to that, having funds and property of their own vested in trustees and administered by themselves or through their own trustees, officers or committees (and in accordance with their own rules);

c

for the delegation of authority to any such group (or to its committee or any of its officers) to act, within such limits as the society may set, on the society’s behalf;

but no such group may do anything on its own account which does not fall F3within section 10 below or within Head D of Schedule 2 or within Schedule 5 to this Act.

6

Schedule 6 to this Act shall have effect in relation to the making of contracts and execution of documents by incorporated friendly societies.

8 Effect of the memorandum of an incorporated society.

1

The provisions of the memorandum of an incorporated friendly society are binding upon—

a

each of the members and officers of the society,

b

all persons claiming on account of a member or under its rules,

and all such members, officers and persons (but no others) shall be taken to have notice of the provisions of the memorandum.

2

A person not of a description mentioned in subsection (1)(a) or (b) above who is a party to a transaction with an incorporated friendly society which is within the permitted capacity of such societies under this Act is not bound to enquire as to whether the transaction is within the capacity of the society in question.

3

Subsection (4) below applies to any act of an incorporated society which is within the permitted capacity of such societies under this Act but is beyond the capacity of the society in question.

4

In favour of a person who—

a

is not a person mentioned in subsection (1) above;

b

gives valuable consideration for the act; and

c

does not know that the act is beyond the capacity of the society,

any act to which this subsection applies is deemed to be one which is within the capacity of the society to enter into, notwithstanding the provisions of the memorandum.

5

Where an incorporated friendly society purports to transfer or grant an interest in property, the fact that the act was beyond the capacity of the society does not affect the title of a person who in good faith subsequently acquires the property or an interest in it for valuable consideration and without actual notice of the circumstances affecting the validity of the society’s act.

6

Subsection (4) above does not affect—

a

the right of a member of an incorporated friendly society to bring proceedings to restrain the doing of an act (other than an act done in fulfilment of a legal obligation arising from a previous act of the society) which is beyond the capacity of the society;

b

the duty of the committee of management to observe any limitation on their powers flowing from the society’s memorandum; or

c

any liability incurred by any person by reason of the society acting beyond its capacity.

7

Relief from any liability mentioned in subsection (6)(c) above must be agreed to by special resolution.

8

In any proceedings arising out of subsection (4) above, the burden of proving that a person knew that an act was beyond the capacity of the society in question lies on the person making the allegation.

9

In this section “transaction” includes any act.

9 Effect of the rules of an incorporated society.

1

The provisions of the rules of an incorporated friendly society are binding upon—

a

each of the members and officers of the society,

b

all persons claiming on account of a member or under its rules,

and all such members, officers and persons (but no others) shall be taken to have notice of the provisions of the rules.

2

A party to a transaction with an incorporated friendly society who is not of a description mentioned in subsection (1)(a) or (b) above is not bound to enquire as to any limitation on the powers of the committee of management to bind the society.

3

Subsection (4) below applies in relation to any act of an incorporated friendly society which is, or is deemed by section 8(4) above to be, within the capacity of the society and is decided upon by the committee of management acting beyond their powers under the constitution of the society.

4

In favour of a person who—

references to limitations on the committee’s powers under the constitution of the society include limitations deriving from a resolution of the society in general meeting or any agreement between the members of the society; and

b

“transaction” includes any act.

9

In any proceedings arising out of subsection (4) above, the burden of proving that a person knew that an act was beyond the powers of the committee of management lies on the person making the allegation.

10

This section shall not affect the application, in relation to an incorporated friendly society, of any rule of law relating to the validity of acts which are within the capacity of a body corporate but may have been affected by defects arising from its internal management under its constitution.

10 Social and benevolent activities.

1

An incorporated friendly society may include among its purposes the carrying on of any social or benevolent activity which is not inconsistent with the other purposes of the society.

2

For the purposes of this section “benevolent activity” means the making of donations, the raising of funds or any other activity carried on for a charitable purpose or for any other benevolent purpose.

11 Group insurance.

1

An incorporated friendly society may include among its purposes the carrying on of any group insurance business.

2

In this Act “group insurance business” means business (carried on in accordance with the society’s rules) which—

a

is of a description falling within Head A, or class 2 of Head B, of Schedule 2 to this Act; and

b

is carried on as the business of providing benefits, in pursuance of a contract with a qualifying person, for or in respect of the members of a group scheme.

3

For the purposes of this section—

“group scheme” means a scheme or other arrangement under which benefits are to be provided for or in respect of persons who are members of the scheme and who qualify for membership by virtue of—

a

being employees of a particular employer, or

b

being members of some other group of persons of a description prescribed in regulations under subsection (7) below;

“qualifying person” means a person who has established or is otherwise responsible for the operation of a group scheme or a trustee of such a scheme; and
“member”, in relation to a group scheme, includes any person for or in respect of whom benefits are to be provided under the scheme, whatever the terms in which such persons are described in the scheme.

3

Group insurance business may be carried on by an incorporated friendly society whether or not members of the group scheme are, or are required by the society to be, members of the society.

4

d

a body corporate is a body jointly controlled by an incorporated friendly society if the society has joint control of it;

and a society acquires joint control whenever any of the conditions mentioned in paragraph (c) F7or (cc) above are satisfied with respect to a body corporate, notwithstanding that it may already be a subsidiary of the society.

10

Schedule 8 to this Act shall have effect for supplementing this section.

11

F162. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of incorporated friendly societies

14 Investment of funds.

1

An incorporated friendly society may invest its funds—

a

in the purchase of land, or in the erection of offices or other buildings thereon;

b

upon any other security expressly directed by the rules of the society, other than personal security (but without prejudice to any provision of this Act relating to loans); or

c

in any other investment of a kind which trustees are for the time being by law authorised to make.

2

An incorporated friendly society which falls within subsection (3) F8. . . below may also invest the funds of the society in any other manner authorised by its constitution.

3

An incorporated friendly society falls within this subsection if—

a

it is a society to which F9rules in respect of margins of solvency, made by the F250appropriate authority under Part 9A of the Financial Services and Markets Act 2000, apply and

b

it maintains the margin of solvency which it is required to maintain by virtue of F10such rules.

F114

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Once a society falls within subsection (3) F8. . . above, it shall be treated as continuing to do so for the purposes of subsection (2) above unless the F243appropriate authority serves a notice under subsection (6) below on it.

6

Where it appears to the F238appropriate authority that an incorporated friendly society has ceased to fall within subsection (3) F8. . . above, it shall serve on the society a notice stating that fact.

7

The powers of investment of a society on which a notice is served under subsection (6) above shall accordingly, until the notice is revoked under subsection (10) below, be limited to investment falling within subsection (1) above.

8

A notice under subsection (6) above may direct a society to dispose of an investment which it could not have acquired except under subsection (2) above.

9

Subject to subsection (8) above, a society may retain any investment which it could only have acquired under subsection (2) above.

10

The F463appropriate authority may, by a subsequent notice to the society, revoke a notice under this section at any time when it appears to it that the society again falls within subsection (3) F8. . . above.

F35110A

The PRA must send to the FCA a copy of any notice it serves under subsection (6) or (10).

F1211

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

The F407FCA shall keep a copy of F13any notice served on a society under subsection (6) or (10) above in the public file of the society.

15 Holding of land for purposes other than investment.

An incorporated friendly society may acquire and hold land—

a

for the purpose of carrying on any of its activities; or

b

for the purpose of enabling a subsidiary of the society, or a body jointly controlled by it, to conduct its business;

and may dispose of, or otherwise deal with, any land so held by it.

16 Assistance to subsidiaries and jointly controlled bodies.

1

An incorporated friendly society may provide its subsidiaries or bodies which it jointly controls with any of the following services—

a

loans of money, with or without security and whether or not at interest;

b

the use of services or property, whether or not for payment;

c

grants of money, whether or not repayable; and

d

guarantees of the discharge of their liabilities.

2

An incorporated friendly society may make payments towards the discharge of the liabilities of any of its subsidiaries.

17 Loans to assured members.

1

An incorporated friendly society may advance to a member of at least one full year’s standing any sum not exceeding one half of the amount of an assurance of his life, on the written security of himself and two satisfactory sureties or, in Scotland, cautioners for repayment.

2

The amount so advanced, with all interest on it, may be deducted from the sum assured, without prejudice in the meantime to the operation of the security.

3

A person’s membership of a registered friendly society before the society’s incorporation is to be taken into account in calculating his standing for the purposes of this section.

Benefit terms

18 Terms on which benefits are available.

1

The terms on which an incorporated friendly society provides any benefit shall be—

a

specified in its rules; or

b

determined in a manner specified in its rules.

2

If the terms on which a benefit is provided are not specified in the society’s rules, the society—

a

shall make copies of them available free of charge to members of the society at every office of the society; and

b

shall send, free of charge, copies of them to any member of the society who demands them.

3

If, on demand made of it under subsection (2) above, a society fails, in accordance with that subsection, to make available or, as the case may be, within 7 days of the demand, to send to a person a copy of the terms on which a benefit is provided, the society shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

4

Schedule 9 to this Act shall have effect in relation to nominations by members of incorporated friendly societies and related matters.

Dissolution and winding up

19 Modes of dissolution and winding up.

1

An incorporated friendly society—

a

may be dissolved by consent of the members; or

b

may be wound up voluntarily or by the court,

in accordance with this Part of this Act; and an incorporated friendly society may not, except where it is dissolved by virtue of section 85(4), 86(5) or 90(9) below, be dissolved or wound up in any other manner.

2

An incorporated friendly society which is in the course of dissolution by consent, or is being wound up voluntarily, may be wound up by the court.

20 Dissolution by consent.

1

An incorporated friendly society may be dissolved by an instrument of dissolution.

2

An instrument of dissolution shall only have effect if it is approved by special resolution.

3

An instrument of dissolution shall set out—

a

the liabilities and assets of the society in detail;

b

the number of members, and the nature of their interests in the society;

c

the claims of creditors, and the provision to be made for their payment;

d

the intended appropriation or division of the funds and property of the society;

e

the names of one or more persons to be appointed as trustees for the purposes of the dissolution, and their remuneration.

4

An instrument of dissolution may be altered, but the alteration shall only have effect if it is approved by special resolution.

5

The provisions of this Act shall continue to apply in relation to an incorporated friendly society as if the trustees appointed under the instrument of dissolution were the committee of management of the society.

6

The trustees shall—

a

within 15 days of the passing of a special resolution approving an instrument of dissolution, give notice to the F393FCA and, if the society is a PRA-authorised person, the PRA of the fact and the date of commencement of the dissolution, enclosing a copy of the instrument; and

b

within 15 days of the passing of a special resolution approving an alteration of such an instrument, give notice to the F393FCA and, if the society is a PRA-authorised person, the PRA of the fact, enclosing a copy of the altered instrument;

and if the trustees fail to comply with this subsection, they shall each be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

7

An instrument of dissolution or an alteration to such an instrument shall be binding on all members of the society as from the date on which the copy of the instrument or altered instrument, as the case may be, is placed on the public file of the society under subsection (12) below.

8

The trustees shall, within 28 days from the termination of the dissolution, give notice to the F393FCA and, if the society is a PRA-authorised person, the PRA of the fact and the date of the termination, enclosing an account and balance sheet signed and certified by them as correct, and showing—

a

the assets and liabilities of the society at the commencement of the dissolution; and

b

the way in which those assets and liabilities have been applied and discharged.

9

If the trustees fail to comply with subsection (8) above they shall each be guilty of an offence and liable on summary conviction—

a

to a fine not exceeding level 2 on the standard scale; and

b

in the case of a continuing offence, to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

10

Except with the consent of the F270appropriate authority, no instrument of dissolution or alteration to such an instrument shall be of any effect if the purpose of the proposed dissolution or alteration is to effect or facilitate the transfer of the society’s engagements to any other friendly society or to a company.

11

Any provision in a resolution or document that members of an incorporated friendly society proposed to be dissolved shall accept membership of some other body in or towards satisfaction of their rights in the dissolution shall be conclusive evidence of such purpose as is mentioned in subsection (10) above.

12

The F443FCA shall keep in the public file of the society any notice or other document received by it under subsection (6) or (8) above and shall record in that file the date on which the notice or document is placed in it.

21 Voluntary winding up.

1

An incorporated friendly society may be wound up voluntarily under the applicable winding up legislation if it resolves by special resolution that it be wound up voluntarily.

2

A copy of any special resolution passed for the voluntary winding up of an incorporated friendly society shall be sent by the society to the F452FCA and, if the society is a PRA-authorised person, the PRA within 15 days after it is passed; and the F471FCA shall keep the copy in the public file of the society.

3

A copy of any such resolution shall be annexed to every copy of the memorandum or of the rules issued after the passing of the resolution.

4

If an incorporated friendly society fails to comply with subsection (2) or (3) above, the society shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

5

For the purposes of this section, a liquidator of the society shall be treated as an officer of it.

22 Winding up by court: grounds and petitioners.

1

An incorporated friendly society may be wound up under the applicable winding up legislation by the court on any of the following grounds, that is to say, if—

a

the society has by special resolution resolved that it be wound up by the court;

b

the number of members is reduced below 7;

c

the number of members of the committee of management is reduced below 2;

d

the society has not commenced business within a year from its incorporation or has suspended its business for a whole year;

e

the society exists for an illegal purpose;

f

the society is unable to pay its debts; or

g

the court is of the opinion that it is just and equitable that the society should be wound up.

2

Except as provided by subsection F314(2A), (2B) or (3) or the applicable winding up legislation, a petition for the winding up of an incorporated friendly society may be presented by—

a

the F405FCA;

F343aa

the PRA;

b

the society or its committee of management;

c

any creditor or creditors (including any contingent or any prospective creditor); or

d

any contributory or contributories,

or by all or any of those parties, together or separately.

F3032A

The FCA may only present a petition under subsection (2) in respect of a society which is a PRA-authorised person after consulting the PRA.

2B

The PRA may only present a petition under subsection (2)—

a

4

Section 177(5) of the M1Insolvency Act 1986 or, as the case may be, Article 151 of the M2Insolvency (Northern Ireland) Order 1989 shall apply to a special manager appointed under subsection (3) above as it applies to a special manager appointed under that section or that Article.

5

The court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the society in the course of carrying on its long term business.

6

The court may, on the application of the liquidator, a special manager appointed under subsection (3) above or the F344FCA or the PRA appoint an independent actuary to investigate the long term business of the society and to report to the liquidator, the special manager or the F344FCA or the PRA, as the case may be, on the desirability or otherwise of that business being continued and on any reduction in the contracts made in the course of carrying on that business that may be necessary for its successful continuation.

25 Power of court to declare dissolution void.

1

Where an incorporated friendly society has been dissolved under section 20 above or following a winding up, the court may, at any time within 12 years after the date on which the society was dissolved, make an order under this section declaring the dissolution to have been void.

2

An order under this section may be made, on such terms as the court thinks fit, on an application by the trustees under section 20 above or the liquidator, as the case may be, or by any other person appearing to the court to be interested.

3

When an order under this section is made, such proceedings may be taken as might have been taken if the society had not been dissolved.

4

The person on whose application the order is made shall, within 7 days of its being so made, or such further time as the court may allow, furnish the F200FCA and, if the society is a PRA-authorised person, the PRA with a copy of the order; and the F241FCA shall keep the copy in the public file of the society.

5

If a person fails to comply with subsection (4) above, he shall be guilty of an offence and liable on summary conviction—

a

to a fine not exceeding level 3 on the standard scale; and

b

in the case of a continuing offence, to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

6

In this section “the court” means—

a

in relation to a society whose registered office is in England and Wales, the High Court;

b

in relation to a society whose registered office is in Scotland, the Court of Session; and

c

in relation to a society whose registered office is in Northern Ireland, the High Court in Northern Ireland.

26 Cancellation of registration.

1

Where the F365FCA is satisfied that an incorporated friendly society has been dissolved under section 20 above or following a winding up, the F14it shall cancel the society’s registration under this Act.

2

Where the F365FCA is satisfied, with respect to an incorporated friendly society—

a

that a certificate of incorporation has been obtained for the society by fraud or mistake; or

b

that the society has ceased to exist,

F15or
1. c
  in the case of a society to which section 37(2) or (3) below applies, that the principal place of business of the society is outside the United Kingdom,
F16it may cancel the registration of the society.

3

Without prejudice to subsection (2) above, the F365FCA may, if it thinks fit, cancel the registration of an incorporated friendly society at the request of the society, evidenced in such manner as the F365FCA may direct.

4

Before cancelling the registration of an incorporated friendly society under subsection (2) above, the F365FCA shall give to the society not less than two months’ previous notice, specifying briefly the grounds of the proposed cancellation.

F2354A

The FCA must consult the PRA before cancelling under subsection (1), (2) or (3) the registration of a society which is a PRA-authorised person.

5

Where the registration of an incorporated friendly society is cancelled under subsection (2) above, the society may appeal—

a

where the registered office of the society is situated in England and Wales, to the High Court;

b

where that office is situated in Scotland, to the Court of Session; or

c

where that office is situated in Northern Ireland, to the High Court in Northern Ireland;

and on any such appeal the court may, if it thinks it just to do so, set aside the cancellation.

6

Where the registration of a society is cancelled under subsection (2) or (3) above, then, subject to the right of appeal under subsection (5) above, the society, so far as it continues to exist, shall cease to be a society incorporated under this Act.

7

Subsection (6) above shall not affect any liability actually incurred by an incorporated friendly society; and any such liability may be enforced against the society as if the cancellation had not taken place.

8

Any cancellation of the registration of an incorporated friendly society under this section shall be effected F17by written notice given by the F365FCA to the society.

9

As soon as practicable after the cancellation of the registration of an incorporated friendly society under this section the F365FCA shall cause notice thereof to be published in the London Gazette, the Edinburgh Gazette or the Belfast Gazette according to the situation of the society’s registered office, and if it thinks fit, in one or more newspapers.

Part III Management and Administration

Committee of management and other officers

I127 Committee of management.

1

Every friendly society shall have a committee of management with at least 2 members.

2

The committee of management shall appoint one of its members to be chairman of the committee.

3

Members of the committee of management shall (unless co-opted on to the committee) be elected to office in accordance with the rules of the society.

4

The committee of management may co-opt as a member of the committee (whether as an additional member or to fill any vacancy) any person—

a

who appears to the committee to be fit and proper to be a member, and

b

who has not failed, having been nominated at an election held within the preceding 12 months, to be elected as a member of the committee;

and such a person may be co-opted notwithstanding that he is not a member of the society.

5

Part I of Schedule 11 to this Act shall have effect in relation to committees of management and Part II shall have effect with regard to dealings with members of committees of management of friendly societies and registered branches.

I228 Chief executive and secretary.

1

Every friendly society shall have a chief executive and a secretary.

2

The chief executive of a friendly society shall be a person appointed by the committee of management who (whether alone or jointly with one or more other persons) is responsible under the immediate authority of the committee for the conduct of the business of the society.

3

The secretary of a friendly society shall be appointed by the committee of management or, if the rules of the society so provide, elected to office in accordance with the rules.

4

The committee of management of a friendly society shall take all reasonable steps to secure that the person appointed as chief executive has the requisite knowledge and experience to discharge the functions of his office.

5

The offices of chief executive and secretary may be held by the same person.

6

Anything required or authorised to be done by or to the secretary or chief executive of a friendly society may, if the office is vacant or there is for any other reason no secretary or chief executive capable of acting, be done by or to—

a

any assistant or deputy secretary or assistant or deputy chief executive, as the case may be; or

b

if there is no assistant or deputy capable of acting, any member of the society’s staff who is authorised generally or specially for that purpose by the committee of management.

I329 Notification of officers to F228FCA.

1

Where a person becomes or ceases to be a member of the committee of management of a friendly society, the society shall within one month give notice of that fact, including the information specified in subsection (2) below, to the F228FCA.

2

The notice shall state the person’s full name and address and the date on which he became, or ceased to be, a member of the committee and, in the case of a person becoming a member, the date of his birth.

3

Where a person becomes or ceases to be the chief executive or the secretary of a friendly society, the society shall within one month give notice of that fact to the F228FCA, stating the person’s full name and address and the date on which he became, or ceased to be, chief executive or secretary.

4

If a friendly society fails to comply with subsection (1) or (3) above, it shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

5

On receipt of a notice under this section, the F228FCA shall record the name of the person to whom the notice relates and the date on which he began to hold, or, as the case may be, ceased to hold office, in the public file of the society.

Meetings and resolutions

I430 Meetings and resolutions.

Schedule 12 to this Act shall have effect with respect to meetings and resolutions of friendly societies and registered branches.

Part IV Authorisation of Friendly Societies’ Business

Restriction on carrying on unauthorised business

31 Restriction on carrying on unauthorised insurance or non-insurance business.

F163. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authorisation to carry on business

32 Grant of authorisation by Commission: general.

F164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Applications from certain existing friendly societies.

F165. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34 Grant of unconditional or conditional authorisation.

F166. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35 Extension of current authorisation.

F167. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36 Imposition of conditions on current authorisation.

F168. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16936A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on business of certain authorised societies

I537 Restriction on combinations of business.

F181

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F189

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38 Restriction on commercial business.

F170. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of Commission in relation to authorised societies

39 Power to direct application for fresh authorisation.

F171. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1940 Withdrawal of authorisation in respect of new business.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41 Withdrawal of authorisation to carry on insurance business.

F172. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

42 Contracts effected in contravention of section 31(1).

F173. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43 Interpretation of Part IV.

F174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V Regulation of Friendly Societies’ Business

Preliminary

44 Appointment of actuary by societies with long term business.

F175. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45 Valuation of assets and liabilities.

F176. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Actuarial investigations

46 Annual investigation into condition of certain societies.

F177. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47 Triennial investigations into condition of certain societies.

F178. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Margins of solvency

48 Margins of solvency in relation to insurance business of certain societies.

F179. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49 Failure to maintain prescribed margin of solvency.

F180. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F20Adequacy of assets and premiums

Annotations:

Amendments (Textual)

F20

Cross heading inserted (1.9.1994) by S.I. 1994/1984 reg. 9

49A Adequacy of assets.

F181. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49B Adequacy of premiums in respect of long term insurance.

F182. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Criteria of prudent management

50 The criteria of prudent management.

F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of F373FCA and PRA

Annotations:

Amendments (Textual)

F373

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)

I651 Power to forbid acceptance of new members.

1

Subject to the provisions of this section, if the Commission considers it expedient to do so in the interests of the members or potential members of a friendly society, it may give the society a direction forbidding it to accept any new members.

2

If the Commission proposes to give such a direction, it shall serve on the society a notice stating that it proposes to give a direction.

3

A notice under subsection (2) above shall specify the grounds for the proposed direction.

4

The Commission shall consider any representations made by the society within such period (not being less than one month) from the date on which the society is served with the notice as the Commission may allow and, if the society so requests, shall afford to it an opportunity of being heard by the Commission within that period.

5

The Commission may not give a direction unless all the grounds for giving it are those, or among those, which were specified in the notice served on the society under subsection (2) above.

6

On giving a direction, the Commission shall—

a

serve notice of it on the society, specifying the grounds for making it;

b

publish notice of it in one or more of the London, Edinburgh and Belfast Gazettes and in any such other ways as it considers appropriate; and

c

send a copy of it to the central office.

7

A society which contravenes a direction given to it under this section shall be guilty of an offence and shall be liable—

a

on conviction on indictment, to a fine; and

b

on summary conviction, to a fine not exceeding the statutory maximum.

8

The central office shall keep a copy of a direction given to a friendly society under this section in the public file of the society.

is otherwise applicable to the insurance activities of the society in that State;

F22d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

F2393

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F234

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 F24....

6

Where a court makes an order under subsection (5) above, the F25F297FCA shall keep a copy of the order in the public file of the society.

7

The power to present a petition or to make an application for an order under subsection (5) above is available to the F372FCA 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 M3Insolvency Act 1986 or (where the society’s registered office is in Northern Ireland) Part VI of the M4Insolvency (Northern Ireland) Order 1989.

F2652A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F32ba

of a final notice varying a direction under this section;

c

of a notification under subsection (7) above;

F33. . . in the public file of the society.

F3410

“Final notice" means a final notice given under section 390 of the Financial Services and Markets Act 2000, as applied by section 58A(6) below.

I955 Supervision of group insurance business.

1

This section applies where a friendly society carries on any group insurance business providing benefits for or in respect of a group of persons who are not members of the society.

2

If it appears to the F321FCA or the PRA that the business so carried on is or may become disproportionate to the other activities of the society (including any group insurance business carried on for the provision of benefits for or in respect of persons who are members of the society), it may direct the society to take or refrain from taking steps specified in the direction with a view to securing that the group business in question ceases to be or does not become disproportionate.

3

Subsections (4) to (9) of section 54 above shall apply in relation to a direction under this section as they apply to a direction under that section.

55AF35 Supervision of controllers.

F361

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

In this Act–

“controller”, in relation to a friendly society to which section 37(2) or (3) of this Act applies, means a person who, either alone or with any associate or associates–

a

is entitled to exercise or control the exercise of 10 per cent. or more of the voting power at any general meeting of the society; or

b

is able to exercise a significant influence over the management of the society by virtue of an entitlement to exercise, or to control the exercise of, the voting power at any general meeting of the society;

F37. . ..

F383

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3956. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Covering of risks situated in another member State

F4057. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4157A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F42Notices, hearings and appeals

Annotations:

Amendments (Textual)

F42

S. 58A and the cross-heading substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for ss. 58-61 by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 Pt. 1 para 75 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F4358 Rights of appeal.

1

A friendly society which is aggrieved by a decision of the Commission—

a

to refuse to grant authorisation under section 32 above,

if such an appeal is brought, until it is determined or withdrawn.

4

Where the Commission decides to refuse to grant authorisation to a society on an application made in pursuance of a direction under section 39 above, the society’s authorisation shall not expire under subsection (5) of that section—

a

until the end of the period within which an appeal can be brought against the decision not to grant authorisation; and

b

if such an appeal is brought, until it is determined or withdrawn.

5

A direction under section 51, 54 or 55 above shall not have any effect until—

a

the end of the period within which an appeal can be brought against the Commission’s decision to give the direction or as to any steps specified in the direction; and

b

if such an appeal is brought, until it is determined or withdrawn.

6

Subject to any order of the tribunal made under section 59(6) below, an appeal under subsection (1)(b) or (2) above shall not affect the operation, pending the determination of the appeal, of any condition which is the subject of the appeal.

7

Subject to subsection (8) below, no determination of an appeal brought by any person under subsection (2) above shall affect any decision of the Commission on the ground of (or on grounds including) the determination made in relation to that person or, as the case may be, the failure of the society to comply with the requirement imposed in relation to that person.

8

The tribunal may revoke a decision of the Commission to impose a condition which is the subject of an appeal under subsection (2) above in so far as it seeks to prevent the person making the appeal from holding, or continuing to hold, office in the society.

58AF44 Notices, hearings and appeals.

1

If the F383FCA or the PRA proposes—

a

to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or

b

to give a direction in relation to a society under section 90,

it must give the society a warning notice.

2

The warning notice must set out the terms of the direction which the F311FCA or the PRA proposes to give and, in the case of a proposal to give a direction under section 54 or 55, any provisions which the F311FCA or the PRA proposes to include in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).

3

If the F315FCA or the PRA decides—

a

to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or

b

to give a direction in relation to a society under section 90,

it must give the society a decision notice.

4

The decision notice must set out the terms of the direction which the F300FCA or the PRA has decided to give and, in the case of a decision to give a direction under section 54 or 55, any provisions to be included in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).

5

A society to whom a decision notice is given under this section may refer the matter to the F401Upper Tribunal.

6

Part XXVI of the Financial Services and Markets Act 2000 (notices) is to be treated as applying in respect of warning notices and decision notices given under this section as it applies in respect of warning notices and decision notices given under that Act, subject to subsection (8) below.

F3927

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

In the application of Part XXVI of that Act in respect of warning notices and decision notices given under this section—

a

section 388(1)(e)(i) (which requires a decision notice to indicate any right given under that Act to refer a decision to the Tribunal) is to be read as if, for the words “this Act", there were substituted “the Friendly Societies Act 1992";

b

section 388(2) (which makes provision for the type of action to which a decision notice may relate if it was preceded by a warning notice) is to be read as if, for the word “Part", there were substituted “section";

c

section 390(4) (which provides for the content of a final notice about an order) is to be read as if—

i

for the words “an order" there were substituted “a direction", and

ii

for the words “the order", in both places where they appear, there were substituted “the direction"; and

d

section 392 (application of sections 393 (third party rights) and 394 (access to F465FCA or PRA material)) is to be read as if—

i

paragraph (a) of that section contained a reference to a warning notice given under subsection (1) above, and

ii

paragraph (b) of that section contained a reference to a decision notice given under subsection (3) above.

F45 C459 Determination of appeals.

1

Where an appeal is brought under section 58 above, a tribunal to determine the appeal shall be constituted in accordance with subsection (2) below.

2

The tribunal shall consist of—

C5a

a chairman appointed by the Lord Chancellor or, where the society concerned has its registered office in Scotland, by the Lord Chancellor in consultation with the Lord Advocate; and

b

two other members appointed by the Treasury.

3

The chairman shall be a person who—

a

has a seven year general qualification, within the meaning of the M5Courts and Legal Services Act 1990;

b

is an advocate or solicitor in Scotland of at least seven years’ standing; or

c

is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least seven years’ standing;

and the other two members shall be persons appearing to the Treasury to have experience of accountancy, the business of insurance or the business of friendly societies.

F463A

A person shall not be appointed after the day on which he attains the age of 70 to be the chairman of a tribunal under this section.

4

Subject to subsection (5) below, on any appeal against a decision of the Commission the question for the determination of the tribunal shall be whether, for the reasons adduced by the appellant, the decision was unlawful or not justified by the evidence on which it was based.

5

In the case of an appeal against a decision to give a direction under section 54 or 55 above—

a

the tribunal shall, on the evidence adduced before it, reconsider the decision to give the direction and the steps specified in the direction (according to the extent of the appeal);

b

if the tribunal determines that such a direction should not be given, it shall reverse the decision; and

c

if the tribunal determines that those steps should not be so specified, it may give the Commission such guidance as it thinks fit as to what the appropriate steps might be.

6

The tribunal may, on the application of the friendly society concerned, order that the operation of any condition which is the subject of an appeal by the society be suspended pending the determination of the appeal.

7

The tribunal may confirm or reverse the decision which is the subject of the appeal but shall not have power to vary it except by directing the Commission—

a

in the case of an appeal against a decision to refuse to grant authorisation, to determine conditions to which the grant of authorisation is to be subject;

b

in the case of an appeal against the imposition of conditions or as to the conditions imposed by the decision, to determine conditions or different conditions subject to which the authorisation is to be granted or is to continue, as the case may be;

c

in the case of an appeal against a decision to withdraw authorisation, to determine conditions or different conditions subject to which the authorisation is to continue in force, as the case may be;

d

b

as to the manner in which such appeals are to be conducted, including provision for any hearing to be held in private;

c

for requiring any person, on tender of the necessary expenses of his attendance, to attend and give evidence or produce documents in his custody or under his control and for authorising the administration of oaths to witnesses;

d

for granting to any person such discovery or inspection of documents or right to further particulars as might be granted by a county court in England and Wales or Northern Ireland or, in Scotland, for granting to any person such recovery or inspection of documents as might be granted by the sheriff;

e

for enabling an appellant to withdraw an appeal or the Commission to withdraw its opposition to an appeal and for the consequences of any such withdrawal;

f

for taxing or otherwise settling any costs or expenses directed to be paid by the tribunal and for the enforcement of any such direction;

g

for enabling any functions in relation to an appeal to be discharged by the chairman of the tribunal; and

h

as to any other matter connected with such appeals.

C74

Regulations under this section with respect to appeals where the friendly society concerned has its registered office in Scotland shall be made by the Lord Advocate.

5

A person who, having been required in accordance with regulations under this section to attend and give evidence, fails without reasonable excuse to attend or give evidence shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

6

A person who intentionally alters, suppresses, conceals, destroys or refuses to produce any document which he has been required to produce in accordance with regulations under this section, or which he is liable to be so required to produce, shall be liable—

a

on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both;

b

on summary conviction, to a fine not exceeding the statutory maximum.

F4861 Further appeals on points of law.

1

An appeal shall lie to the High Court at the instance of the friendly society or other person concerned or of the Commission on any question of law arising from any decision of a tribunal under section 59 above; and if the court is of the opinion that the decision was erroneous in law, it shall remit the matter to the tribunal for re-hearing and determination by it.

2

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 construed as references to the Court of Session or, as the case may be, the High Court in Northern Ireland.

3

No appeal to the Court of Appeal or to the Court of Appeal in Northern Ireland shall be brought from a decision under subsection (1) above except with the leave of that court or of the court or judge from whose decision the appeal is brought.

4

An appeal shall lie, with the leave of the Court of Session or the House of Lords, from any decision of the Court of Session under this section, and such leave may be given on such terms as to costs, expenses or otherwise as the Court of Session or the House of Lords may determine.

Information

I1062 Powers to obtain information and documents etc.

1

This section applies to information, documents or other material, or explanations of matters which relate to—

a

the activities or the plans for future development of a friendly society; or

b

the activities or the plans for future development of a subsidiary of or body jointly controlled by an incorporated friendly society;

and, in relation to the imposition of requirements under this section, “the purposes of its supervisory functions” means the purposes of the discharge by the F281FCA or the PRA of any of its functions under this Act.

2

This section does not authorise any requirement in relation to information, documents or other material to be imposed on a subsidiary of or body jointly controlled by an incorporated friendly society unless that subsidiary or body carries on business in the United Kingdom; but a requirement may be imposed under this section on a friendly society in relation to information, documents or other material in the possession or control of a subsidiary of or body jointly controlled by the society which does not carry on business in the United Kingdom.

3

Subject to subsection (2) above, the F281FCA or the PRA may by notice to a friendly society or to a subsidiary of, or body jointly controlled by, an incorporated friendly society, require the body to which it is addressed—

a

to furnish to it, within a specified period or at a specified time or times, such specified information as the F281FCA or the PRA considers it needs for the purposes of its supervisory functions;

b

to produce to it, at a specified time and place, such specified documents or other material as the F281FCA or the PRA considers it needs for the purposes of its supervisory functions;

c

to provide to it, within a specified period, such explanations of specified matters as the F281FCA or the PRA considers it needs for the purposes of its supervisory functions;

F493A

if such a requirement were imposed, or such a request made,—

i

it would not be complied with, or

ii

any information, documents or other material to which it related would be removed, tampered with or destroyed.

F60 I1163 Confidentiality of certain information.

1

Subject to section 64 below, no restricted information which relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person shall be disclosed (otherwise than to an officer or employee of the primary recipient) by—

a

the primary recipient; or

b

any person obtaining the information directly or indirectly from him,

without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.

2

For the purposes of this section—

“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and
“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;

but information shall not be treated as restricted information if it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this section.

3

Any information disclosed to the Commission or the Chief Registrar by an overseas regulatory authority (within the meaning of section 64 below) shall be treated as restricted information for the purposes of this section.

4

A person who discloses information in contravention of this section shall be guilty of an offence and liable—

a

on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and

b

on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.

63AF61 Disclosure of information.

without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.

2

For the purposes of this section—

“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and
“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;

3

4

A person who discloses information in contravention of this section shall be guilty of an offence and liable—

a

on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and

b

on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.

F62 C8 I1264 Exceptions from restrictions on disclosure.

1

Information which is restricted information for the purposes of section 63 above may be disclosed—

a

to any person with a view to the institution of, or otherwise for the purposes of, relevant proceedings;

b

if it is information which is or has been available to the public from other sources;

c

in the form of a summary or collection of information so framed as not to enable information related to any particular body or person to be ascertained from it;

d

to the extent that it is information which is provided for the purpose, under any provision of this Act or the 1974 Act, of its being made available to the public in any manner;

e

in pursuance of any Community obligation;

f

for the purpose of facilitating the discharge by the Commission, the Chief Registrar or the central office of any of their functions under this Act or the 1974 Act;

g

to the Treasury, if the disclosure is made for the purpose of facilitating the discharge of any functions of the Treasury under this Act or the 1974 Act or otherwise in the interests of members of friendly societies or in the public interest;

h

for the purpose of enabling or assisting any person appointed investigator under section 65 below or inspector under section 66 below to discharge his duties under that section; or

i

for the purpose of facilitating the discharge by the auditors of a friendly society of their duties to the Commission.

2

For the purposes of subsection (1)(a) above “relevant proceedings” are—

a

any criminal proceedings;

b

any civil proceedings by or at the relation of or against the Commission or the Chief Registrar arising out of the discharge of any of their functions under this Act or the 1974 Act;

c

any disciplinary proceedings relating to—

i

the exercise by a solicitor, auditor, accountant, actuary or valuer of his professional duties;

ii

the discharge by a public servant of his duties;

and in paragraph (c) above “public servant” means an officer or servant of the Crown (including an officer or servant of the Crown in right of Her Majesty’s Government in Northern Ireland) or of any public or other authority designated for the purpose by order made by the Treasury.

3

Nothing in section 63 above prohibits the disclosure of information to the Secretary of State or the Department of Economic Development in Northern Ireland in circumstances where it is desirable or expedient—

a

that the information should be disclosed in the interests of members of a friendly society or in the public interest; or

b

it is desirable or expedient that the information should be disclosed for the purpose of facilitating the discharge—

i

by the Secretary of State, of any functions of his under the enactments relating to companies, insurance companies, or insolvency or under the M7Financial Services Act 1986 or any provision of Parts II, III or VII of the M8Companies Act 1989; or

ii

by the Department, of any of its functions relating to companies or insolvency, or under Part III of the M9Companies (Northern Ireland) Order 1990 or Part II or V of the M10Companies (No. 2) (Northern Ireland) Order 1990;

nor does that section prohibit further disclosure of the information by the Secretary of State or the Department with the consent of the Commission.

F633A

Nothing in section 63 above prohibits the disclosure of information to the Treasury in circumstances where it is desirable or expedient that the information should be disclosed for the purpose of facilitating the discharge by the Treasury of any functions of theirs F64under the enactments relating to insurance companies, under the Financial Services Act 1986 or under Part III or Part VII of the Companies Act 1989 nor does that section prohibit further disclosure of the information by the Treasury with the consent of the Commission.

4

Nothing in section 63 above prohibits the disclosure of information to an authority mentioned in subsection (5) below (a “relevant authority") in circumstances where, in the opinion of the Commission, it is desirable or expedient that the information should be disclosed—

a

in the interests of members of a friendly society or in the public interest; or

b

with a view to facilitating the discharge by the authority, of any functions of the authority (including functions in relation to proceedings) mentioned in that subsection (“relevant functions”);

nor does that section prohibit further disclosure of the information, with the consent of the Commission.

5

The relevant authorities mentioned in subsection (4) above and the relevant functions in relation to each such authority, are as follows—

Authority	Functions
F651. An inspector appointed under Part XIV of the Companies Act 1985, Part XV of the Companies (Northern Ireland) Order 1986 or section 94 or 177 of the Financial Services Act 1986.	Functions under that Part or that section or Article.
F652. A person authorised to exercise powers under section 44 of the Insurance Companies Act 1982, section 447 of the Companies Act 1985, section 106 of the Financial Services Act 1986 or section 84 of the Companies Act 1989 or Article 440 of the Companies (Northern Ireland) Order 1986.	Functions under that section or Article.
F653.The Policyholders Protection Board.	Functions under the Policyholders Protection Act 1975.
F654.A designated agency within the meaning of the Financial Services Act 1986.	Functions under that Act or Part VII of the Companies Act 1989.
F655.A transferee body or the competent authority within the meaning of the Financial Services Act 1986.	Functions under that Act.
F656.A body administering a scheme under section 54 of the Financial Services Act 1986.	Functions under the scheme.
F657.A recognised self-regulating organisation, recognised professional body, recognised investment exchange, recognised clearing house, or recognised self-regulating organisation for friendly societies (within the meaning of the Financial Services Act 1986).	Functions in its capacity as an organisation, body, exchange or clearing house recognised under that Act.
F658.The Bank of England.	F66Any of its functions
F67The Financial Services Authority.	Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989.
F659. A body established by order under section 46 of the Companies Act 1989.	Functions under Part II of that Act.
F6810. A recognised supervisory or qualifying body (within the meaning of Part II of the Companies Act 1989 or Part III of the Companies (Northern Ireland) Order 1990). .	Functions as such a body or functions in relation to disciplinary proceedings against auditors.
F6511.The Industrial Assurance Commissioner for Northern Ireland.	Functions under the enactments relating to industrial assurance.
F69. . ..	F69. . ..
F6513.The Official Receiver or the Official Receiver for Northern Ireland.	Functions under the enactments relating to insolvency.
F70 14A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986 or Article 350 of the Insolvency (Northern Ireland) Order 1989).	Functions in its capacity as such a body under that Act or that Order or functions in relation to disciplinary proceedings against insolvency practitioners (within the meaning of that Act or that Order).
F6515.The Building Societies Commission.	Functions under the Building Societies Act 1986.
F71The Occupational Pensions Regulatory Authority.	Functions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them.
F6516.The Director-General of Fair Trading.	Functions under the Financial Services Act 1986.
F7217An actuary exercising functions under this Act.	Those functions.
18The Institute of Actuaries or the Faculty of Actuaries.	Supervisory functions in relation to actuaries exercising functions under this Act.

6

The Commission, with the consent of the Treasury, may by order—

a

amend the Table in subsection (5) above so as to—

i

add any public or other authority to the Table and specify the relevant functions of that authority;

ii

remove any authority from the Table; or

iii

add functions to, or remove functions from, those which are relevant functions in relation to an authority specified in the Table;

b

restrict the circumstances in which information may, by virtue of subsection (4) above, be disclosed or further disclosed; and

c

impose conditions subject to which the information may be disclosed or further disclosed.

7

Nothing in section 63 above prohibits the disclosure to an overseas regulatory authority of information for the purpose of assisting that authority in the discharge of its functions.

F737A

In the case of restricted information which relates to the business or other affairs of a friendly society to which section 37(2) or (3) above applies, no disclosure may be made by virtue of subsection (1), (3), (4) or (7) above unless the disclosure appears to be in accordance with–

a

Article 16 of the third general insurance Directive; or

b

Article 15 of the third life Directive.

8

In this section—

“authority” includes any body (corporate or unincorporate) which is charged with the regulation of the carrying on of any description of financial or insurance business or the practice of any profession to which the carrying on of such business is incidental;
“overseas regulatory authority” means any government department or public or other authority in a country or territory outside the United Kingdom which is charged under the law of that country or territory with the regulation of companies, insurance companies, financial services, banking or any business corresponding to the business which may be carried on by friendly societies (or their subsidiaries); and
“regulation”, in relation to any public or other authority, means regulation in the public interest or for the protection of private interests.

Inspections etc.

I1365 Investigations on behalf of F411FCA or PRA.

1

If it appears to the F356FCA or the PRA desirable to do so for the purpose of its supervisory functions in relation to a friendly society, the F356FCA or the PRA may appoint one or more competent persons to investigate and report to it on the state and conduct of the activities of the society, or any particular aspect of those activities.

F741A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In relation to a friendly society to which section 37(2) or (3) above applies, any reference in subsection (3) or (5) above to a person who is or has been an officer shall be read as including a reference to a person who is or has been a controller or manager.

6

In this section—

“agent”, in relation to a friendly society or other body whose activities are under investigation, includes its bankers, accountants, solicitors and auditors and the appropriate actuary;
“the purposes of its supervisory functions”, in relation to the F356FCA or the PRA, has the same meaning as in section 62 above.

65AF207Protection of supplies

Article 197B of the Order (protection of supplies of goods and services) does not apply.

I1466 Inspections and special meetings: general.

1

In the circumstances mentioned in subsection (2) below, the F397FCA or the PRA may—

a

appoint one or more competent inspectors to investigate and report on the affairs of a friendly society; or

b

call a special meeting of a friendly society to consider its affairs; or

c

appoint (whether on the same or on different occasions) an inspector or inspectors and call a special meeting for those purposes;

and, in the circumstances mentioned in subsection (3) below, the investigation or consideration may extend to the affairs of any body corporate which is or at any relevant time has been a subsidiary of or jointly controlled by the society concerned.

2

The powers conferred by subsection (1) above may be exercised either—

a

on the application of the requisite number of members of the society concerned; or

b

i

direct at what time and place the meeting is to be held and what matters are to be discussed and determined at the meeting; and

ii

direct which members may attend and vote at the meeting,

and may give such other directions as it thinks fit with respect to the call, holding and conduct of the meeting;

b

the F397FCA or the PRA may appoint a person to be chairman at the meeting or, in default of such an appointment, the meeting may appoint its own chairman;

c

the meeting shall have all the powers of a meeting called according to the rules of the society;

and the provisions of this subsection and any direction given under it shall have effect notwithstanding anything in the rules of the society.

11

In this section “the corresponding Companies Act limit”, in relation to security for the payment of the costs of an investigation, is £5,000 or such other sum as is specified for the time being in an order under section 431(4) of the M11Companies Act 1985 F390....

I1567 Inspections: supplementary provision.

1

In this section—

“the body under investigation” means—
1. i
  the friendly society whose affairs are the subject of the investigation, or
2. ii
  the friendly society, and each subsidiary of or body jointly controlled by the society, whose affairs are so subject,
as the case may be;
“the inspectors” means the person appointed by the F233FCA or the PRA under section 66 above to conduct the investigation;
“the investigation” means the investigation under section 66 above which the inspectors have been appointed to hold;

and references to officers, employees or agents include past, as well as present, officers, employees or agents; and “agents”, in relation to a friendly society or any subsidiary of or body jointly controlled by an incorporated friendly society, includes its bankers, accountants, solicitors and auditors and the appropriate actuary.

2

When the inspectors have been appointed, it is the duty of all officers, employees and agents of the body under investigation—

a

to produce to the inspectors all documents and material of or relating to the body under investigation which are in their custody or power;

b

to attend before the inspectors when required to do so; and

c

otherwise to give the inspectors all assistance in connection with the investigation which they are reasonably able to give.

3

If the inspectors consider that a person other than an officer, employee or agent of the body under investigation is or may be in possession of information concerning its affairs, they may require that person to produce to them any documents or material in his custody or power relating to the body under investigation, to attend before them and otherwise to give them all assistance in connection with the investigation which he is reasonably able to give; and it is that person’s duty to comply with the requirement.

4

The inspectors may examine on oath the officers, employees and agents of the body under investigation, and any such person as is mentioned in subsection (3) above, in relation to the affairs of the body under investigation, and may administer an oath accordingly.

5

An answer given by a person to a question put to him under the foregoing provisions of this section may be used in evidence against him.

F775A

However, in criminal proceedings in which that person is charged with an offence to which this subsection applies—

a

no evidence relating to the statement may be adduced, and

b

no question relating to it may be asked,

by or on behalf of the prosecution, unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person.

5B

Subsection (5A) above applies to any offence other than—

a

an offence under section 2 or 5 of the M12Perjury Act 1911 (false statements made on oath otherwise than in judicial proceedings or made otherwise than on oath);

b

an offence under section 44(1) or (2) of the M13Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made on oath or otherwise than on oath); or

c

an offence under Article 7 or 10 of the Perjury (Northern Ireland) Order 1979 (false statements made on oath otherwise than in judicial proceedings or made otherwise than on oath).

6

If an officer, employee or agent of the body under investigation or any such person as is mentioned in subsection (3) above—

a

refuses to produce any document or material which it is his duty under this section to produce; or

b

refuses to attend before the inspectors when required to do so; or

c

refuses to answer any question put to him by the inspectors with respect to the affairs of the body under investigation,

the inspectors may certify the refusal in writing to the High Court; and the court may thereupon enquire into the case and, after hearing any witnesses who may be produced against or on behalf of the alleged offender and after hearing any statement which may be offered in defence, may punish the offender in like manner as if he had been guilty of contempt of the court.

7

The inspectors may, and if so directed by the F233FCA or the PRA shall, make interim reports to the F233FCA or the PRA, but they may at any time in the course of the investigation, without making an interim report, inform the F233FCA or the PRA of matters coming to their knowledge as a result of the investigation tending to show that an offence has been committed.

8

The F233FCA or the PRA may, if it thinks fit—

a

send a copy of any report made by the inspectors to the body whose affairs are or were the subject of the investigation;

b

furnish a copy of any such report on request F78. . . to—

i

any member of the body whose affairs are or were the subject of the investigation;

ii

the auditors of that body;

iii

any person whose conduct is referred to in the report;

iv

any other person whose financial interests appear to the F233FCA or the PRA to be affected by matters dealt with in the report, whether as creditor or otherwise; and

c

cause the report to be printed and published.

F798A

The F233FCA or the PRA may charge a reasonable fee for furnishing to any person a copy of a report under subsection (8)(b) above.

9

A copy of a report of inspectors appointed under section 66 above to hold an investigation under that section, certified by the F233FCA or the PRA to be a true copy, is admissible in any legal proceedings as evidence of the opinion of the inspectors in relation to any matter contained in the report; and a document purporting to be such a certificate shall be received in evidence and be deemed to be such a certificate, unless the contrary is proved.

10

The F233FCA or the PRA shall be entitled to be repaid the expenses of the investigation defrayed by it under section 66(6)(d) above as provided in the following paragraph, that is to say—

a

by the applicants for the investigation, to such extent (if any) as the F233FCA or the PRA may direct;

b

by any body whose affairs were the subject of the investigation, to such extent (if any) as the F233FCA or the PRA may direct;

c

by any person convicted of an offence in proceedings instituted as a result of the investigation, to such extent (if any) as the court by or before which he was convicted may order;

and a person liable under any one of paragraphs (a) to (c) above is entitled to contribution from any other person liable under the same paragraph, according to the amount of their respective liabilities under it.

F8010A

In relation to a friendly society to which section 37(2) or (3) above applies–

a

any reference in subsection (1), (2) or (4) above to officers shall be read as including a reference to controllers or managers; and

b

any reference in subsection (3) or (6) above to an officer shall be read as including a reference to a controller or manager.

11

In the application of this section to a friendly society whose registered office is in Scotland or Northern Ireland, any reference to the High Court shall be read as a reference to the Court of Session or, as the case may be, to the High Court in Northern Ireland.

F8167A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8267B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8367C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8467D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part VI Accounts and Audit

Records F85. . .

Annotations:

Amendments (Textual)

F85

entries from day to day of all sums received and paid by the society or branch and the matters in respect of which they are received or paid;

b

entries from day to day of every transaction entered into by the society or branch which will or there is reasonable ground for expecting may give rise to liabilities or assets of the society or branch other than insignificant assets or liabilities in respect of the management of the society or branch; and

c

a record of the assets and liabilities of the society or branch.

F884

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F885

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F886

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F887

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

The accounting records shall be kept at the registered office of the society or branch or at such other place or places as the committee of management thinks fit, and shall at all times be open to inspection by the committee of management.

9

Accounting records shall be preserved for 6 years from the date on which they were made.

10

Where an incorporated friendly society has subsidiaries or jointly controls other bodies, the society shall also secure that such accounting records are kept F89. . . by them as will enable the society to comply with the requirements of this section in relation to the business of the society and those subsidiaries and jointly controlled bodies.

F9011

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual accounts of friendly societies and registered branches

F31869 Duty to prepare accounts.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69AF318Duty to prepare individual accounts

1

The committee of management of every friendly society or registered branch must prepare accounts for the society or branch for each of its financial years. Those accounts are referred to in this Part as the society’s or branch’s “individual accounts”.

2

The individual accounts of a friendly society or registered branch of a society may be prepared—

a

in accordance with section 69B (“Friendly Societies Act individual accounts”), or

b

in accordance with F192UK-adopted international accounting standards (“IAS individual accounts”).

This subsection is subject to F466subsections (2A) and (3), and section 69I (consistency of accounts).

F3232A

The individual accounts of—

a

a friendly society that is a charity, or

b

a registered branch of a friendly society that is a charity,

must be Friendly Societies Act individual accounts.

3

After the first financial year in which the committee of management of a friendly society or registered branch prepares IAS individual accounts (“the first IAS year”), all subsequent individual accounts of the society or branch must be prepared in accordance with F319UK-adopted international accounting standards unless there is a relevant change of circumstance. F427This is subject to subsection (4A).

4

There is a relevant change of circumstance if, at any time during or after the first IAS year—

a

the society or branch becomes a subsidiary undertaking of another undertaking and individual accounts for that undertaking are not prepared in accordance with F261UK-adopted international accounting standards,

F231aa

the society or branch ceases to be a subsidiary undertaking,

b

the society or branch ceases to be a society or part of a society with securities admitted to trading on a F457UK regulated market, or

c

a parent undertaking of the society or branch ceases to be an undertaking with securities admitted to trading on a F445UK regulated market.

F453“UK regulated market” has the meaning given in Article 2.1.13A of Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 and amending Regulation (EU) No. 648/2012.

F2084A

After a financial year in which the committee of management of a friendly society or registered branch prepares IAS individual accounts, the committee of management may change to preparing Friendly Societies Act individual accounts for a reason other than a relevant change of circumstance provided it has not changed to Friendly Societies Act individual accounts in the period of five years preceding the first day of that financial year.

4B

In calculating the five year period for the purpose of subsection (4A), no account should be taken of a change due to a relevant change of circumstance.

5

If, having changed to preparing Friendly Societies Act individual accounts F257..., the committee of management again prepares IAS individual accounts for the society or branch, subsections (3) and (4) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.

may make different provision for different cases, and

b

may include incidental and supplementary provisions.

69CForm and contents of Friendly Societies Act individual accounts

1

The Treasury must by regulations make provision with respect to the form and content of Friendly Societies Act individual accounts.

2

The Treasury may by regulations make provision with respect to additional information to be contained in Friendly Societies Act individual accounts, whether in the form of notes or otherwise.

3

The regulations may, in particular–

a

prescribe accounting principles and rules;

b

require corresponding information for a preceding financial year;

c

make different 'provision for different descriptions of society or branch.

69DIAS individual accounts

Where the committee of management of a friendly society prepare IAS individual accounts for a society or branch, it must state in the notes to those accounts that the accounts have been prepared in accordance with F435UK-adopted international accounting standards.

69EDuty to prepare group accounts

1

If at the end of a financial year an incorporated friendly society has subsidiary undertakings, the committee of management, in addition to preparing individual accounts for the year, must prepare consolidated accounts for the year for the society and those undertakings taken as a whole, except as provided by regulations under subsection (7).

Those accounts are referred to in this Part as the society’s “group accounts”.

2

Certain friendly societies are obliged by F464section 403(1) of the Companies Act 2006 to prepare their group accounts in accordance with F438UK-adopted international accounting standards (“IAS group accounts”).

3

The group accounts of other friendly societies may be prepared –

a

in accordance with section 69F (“Friendly Societies Act group accounts”), or

b

in accordance with F408UK-adopted international accounting standards (“IAS group accounts”).

This subsection is subject to the following provisions of this section and section 69I (consistency of accounts).

F2223A

The group accounts of a friendly society that is a charity must be Friendly Societies Act group accounts.

4

After the first financial year in which the committee of management of a friendly society prepares IAS group accounts (“the first IAS year”), all subsequent group accounts of the society must be prepared in accordance with F289UK-adopted international accounting standards unless there is a relevant change of circumstance. F293This is subject to subsection (5A).

5

There is a relevant change of circumstance if, at any time during or after the first IAS year—

a

the society becomes a subsidiary undertaking of another undertaking and accounts for that undertaking and its subsidiary undertakings (taken as a whole) are not prepared in accordance with F202UK-adopted international accounting standards,

b

the society ceases to be a society with securities admitted to trading on a F476UK regulated market, or

c

a parent undertaking of the society ceases to be an undertaking with securities admitted to trading on a F259UK regulated market.

F283...

F2845A

After a financial year in which the committee of management of a friendly society prepares IAS group accounts, the committee of management may change to preparing Friendly Societies Act group accounts for a reason other than a relevant change of circumstance provided it has not changed to Friendly Societies Act group accounts in the period of five years preceding the first day of that financial year.

5B

In calculating the five year period for the purpose of subsection (5A), no account should be taken of a change due to a relevant change of circumstance.

6

If, having changed to preparing Friendly Societies Act group accounts F362..., the committee of management again prepares IAS group accounts for the society, subsections (4) and (5) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.

7

The Treasury may by regulations exempt specified descriptions of incorporated friendly societies with subsidiaries from any duty to prepare group accounts.

8

Regulations under subsection (7) may exempt societies by reference to any criterion and may make different provision for different descriptions of societies.

F3349

In this subsection “UK regulated market” has the meaning given in Article 2.1.13A of Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 and amending Regulation (EU) No. 648/2012.

69FFriendly Societies Act group accounts

1

Friendly Societies Act group accounts must comprise—

a

a balance sheet dealing with the state of affairs of the society and its subsidiary undertakings;

b

an income and expenditure account showing the income and expenditure of the society and its subsidiary undertakings.

2

Friendly Societies Act group accounts must give a true and fair view of the state of affairs as at the end of the financial year, and the income and expenditure for the financial year, of the society and the subsidiary undertakings included in the group accounts as a whole, so far as concerns the members of the society.

3

Friendly Societies Act group accounts must comply with the requirements of regulations made under section 69G as to the form and content of the group accounts and additional information to be provided by way of notes to the accounts or otherwise.

4

Where compliance with the provisions of those regulations, and the other provisions of this Act as to the matters to be included in a society’s group accounts or in notes to those accounts, would not be sufficient to give a true and fair view, the necessary additional information must be given in the accounts or in a note to them.

5

6

Particulars of any such departure, the reasons for it and its effect must be given in a note to the accounts.

7

The Treasury may by regulations—

a

add to the classes of documents to be comprised in a society’s Friendly Societies Act group accounts under subsection (1);

b

make provision as to the matters to be included in any document so added;

c

modify the requirements of this Part as to the matters to be stated in any document comprised in the society’s Friendly Societies Act group accounts; and

d

reduce the classes of documents to be comprised in a society’s Friendly Societies Act group accounts.

8

Regulations under subsection (7)—

a

may make different provision for different descriptions of society; and

b

may include incidental and supplementary provisions.

69GForm and content of Friendly Societies Act group accounts

1

The Treasury must by regulations make provision with respect to the form and content of Friendly Societies Act group accounts.

2

The Treasury may by regulations make provision with respect to additional information to be contained in Friendly Societies Act group accounts, whether in the form of notes or otherwise.

3

The regulations may, in particular—

a

prescribe accounting principles and rules;

required to be prepared under Part 6 of this Act.

3

Subsection (1) does not require accounts of undertakings that are charities to be prepared using the same financial reporting framework as accounts of undertakings which are not charities.

4

Subsection (1)(a) does not apply where the committee of management of a friendly society prepares IAS group accounts and IAS individual accounts.

5

The committee of management of a society which has subsidiary undertakings must ensure that, except where in its opinion there are good reasons against it, the financial year of each of its subsidiary undertakings coincides with the society’s own financial year.

69JF347Disclosures relating to members of the committee of management and employees of the society

1

The information specified in Schedule 13D must be given in notes to a friendly society’s or a registered branch’s annual accounts, subject to the provisions of subsection (5).

2

In that Schedule—

Part 1 relates to emoluments and other benefits of members of the committee of management and others and to loans and other dealings in favour of members of the committee and connected persons; and
Part 2 relates to information about the employees of a society.

3

It is the duty of any member of the committee of management, and any person who has been at any time in the preceding five years a member of the committee, to give notice to the society of such matters relating to himself as may be necessary for the purposes of Part 1 of Schedule 13D.

4

A person who makes default in complying with subsection (3) commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

5

Paragraphs 11 and 13 of Schedule 13D do not apply to non-directive friendly societies or their registered branches.

6

The annual accounts of a friendly society which is required to produce group accounts under section 69E must include the material specified by paragraphs 11 to 13 not only in respect of the society but also in respect of the society and its subsidiaries in combination.

7

The Treasury may, by order, modify the provisions of Schedule 13D.

8

An order under this section may—

a

make consequential amendments or repeals of other provisions of this Act;

b

make such transitional or saving provisions as appear to the Treasury to be necessary or expedient;

c

make different provision for different cases.

69KDisclosures about related undertakings

1

The information specified in Schedule 13E must be given in notes to a friendly society’s or a registered branch’s annual accounts.

2

In the case of a friendly society whose committee of management is not required to prepare consolidated accounts, the information specified in Part 1 of that Schedule must be given.

3

In the case of a friendly society whose committee of management is required to prepare consolidated accounts, the information specified in Part 2 of that Schedule must be given.

4

The Treasury may, by order, modify the provisions of Schedule 13E.

5

3

The information need only be given to the extent necessary for enabling the financial position of the society or branch to be assessed.

4

Where a friendly society is required to prepare consolidated group accounts, this section applies in relation to those accounts as if the undertakings included in the consolidation were a single friendly society.

69MF220Disclosure of auditor remuneration

3

If a report under this section does not contain the prescribed information or the information in the report is not given in accordance with the regulations, each member of the committee of management shall be guilty of an offence and liable—

analysis using financial key performance indicators, and

b

where appropriate, analysis using other key performance indicators, including information relating to environmental matters and employee matters.

3

The review must, where appropriate, include references to additional explanations of amounts included in the annual accounts of the society.

4

In this section “key performance indicators” means factors by reference to which the development, performance or position of the business of the society, any subsidiary undertakings it has and any bodies that it jointly controls, can be measured effectively.

Auditors

I1872 Auditors’ appointment, tenure, qualifications, etc.

1

Every friendly society and every registered branch shall at each annual general meeting appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting.

2

Schedule 14 to this Act has effect as regards—

a

the appointment of auditors;

b

their qualifications and grounds of disqualification;

c

the resignation and removal of auditors; and

d

the remuneration of auditors.

F3823

Schedule 14A to this Act has effect with regard to the appointment and removal of auditors of societies F272subject to special requirements.

Auditors’ report on annual accounts

I1973F212Auditor’s report.

1

The F458auditor of a friendly society or of a registered branch shall make a F294written report to the members on the annual accounts which are to be laid before the society or branch at the annual general meeting during F458his tenure of office.

2

The F369auditor of a friendly society or registered branch shall, in preparing F326his report, carry out such investigations as will enable F447him to form an opinion as to—

a

whether F353adequate accounting records have been kept under section 68 above;

F92b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

whether the annual accounts are in agreement with the accounting records;

F266...

F3792A

If the auditor is of the opinion that—

a

adequate accounting records have not been kept under section 68, or

b

c

the indications given under subsection (4A).

7

Where the persons do not all agree on all of those things, the report must—

a

include the opinions of each person appointed, and

b

give reasons for the disagreement.

74F267Signature of auditor’s report

1

The auditor’s report to the members of a friendly society or registered branch must state the name of the auditor F371(or, where more than one person is appointed as auditor, all of their names) and be signed and dated.

2

Where the auditor is an individual, the report must be signed by him.

3

3

i

the name of the society or branch,

ii

the financial year of the society to which the report relates, and

iii

the name of the auditor and (where applicable) the name of the person who signed the report as senior statutory auditor.

I2075F237Auditor’s rights to information and to attend meetings.

1

The F370auditor of a friendly society is entitled—

a

to access at all times to the books, accounts and vouchers of the society;

b

to require from the officers of the society such information and explanations F247as he thinks necessary for the performance of his duties as auditor;

c

to receive from the society—

i

notice of any general meeting of the society and of any matter relating to the business of such a meeting of which notice is given (by whatever means) to the society’s members; and

ii

copies of any communications sent to the society’s members with respect to any such meeting; and

d

the subsidiary or auditor is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

8

An incorporated friendly society having a subsidiary to which subsection (6) above does not apply shall, if required by F341its auditor to do so, take all such steps as are reasonably open to it to obtain from the subsidiary such information and explanations as F310he may reasonably require for the purposes of F298his duties as auditor of that society.

9

If an incorporated friendly society fails to comply with subsection (8) above, it is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

I2176 Approval and signing of accounts.

1

The annual accounts of a friendly society or a registered branch shall be approved by the committee of management.

2

The accounts so approved shall be signed by the secretary of the society or branch; and the signature shall be on the balance sheet.

3

Every copy of the balance sheet which is laid before the society or branch in general meeting, or is otherwise circulated, published or issued, shall state the name of the secretary of the society or branch.

4

The copy of the balance sheet of a friendly society or a registered branch which is sent F385... under section 78 below shall be signed by the secretary of the society or branch.

5

If annual accounts of a society or branch are approved which do not comply with the requirements of this Act, every member of the committee of management who is party to their approval and who knows that they do not comply or is reckless as to whether they comply is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

For this purpose every member of the committee at the time the accounts are approved shall be taken to be a party to their approval unless he shows that he took all reasonable steps to prevent their being approved.

6

If a copy of the balance sheet of a society or branch—

a

is laid before the society or branch, or otherwise circulated, published or issued, without the balance sheet having been signed as required by this section or without the required statement of the signatory’s name being included; or

b

is sent F385... without being signed as required by this section,

the society or branch and every officer of it who is in default is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

I2277 Information on appointed actuary to be annexed to balance sheet.

1

This section applies to any copy of a friendly society’s balance sheet which—

F454a

is furnished under section 78 to the FCA and, if the society is a PRA-authorised person, the PRA;

aa

is furnished to either the FCA or the PRA at its request;

b

is laid before the society at its annual general meeting; or

c

is furnished to a member at his request.

2

Subject to the provisions of this section, a friendly society shall annex to each copy of its balance sheet to which this section applies as respects every person who, at any time during the financial year to which the balance sheet relates, was its appointed actuary, a statement of the following information—

a

whether the actuary was a member of the society or any subsidiary of the society at any time during that year;

b

particulars of any pecuniary interest of the actuary in any transaction between the actuary and the society or any subsidiary of the society and subsisting at any time during that year or, in the case of transactions of a minor character, a general description of such interests;

c

the aggregate amount of any remuneration and the value of any other benefits other than a pension or other future or contingent benefit under any contract of service of the actuary with, or contract for services by the actuary to, the society or any subsidiary of the society, receivable by the actuary in respect of any period in that year; and

d

a general description of any other pecuniary benefit (including any pension and other future contingent benefit) received by the actuary from the society or any subsidiary of the society in that year or receivable by him from the society or any such subsidiary,

together with a statement that the society has made a request to the actuary to furnish to it the particulars specified in this subsection and identifying any particulars furnished pursuant to the request.

3

Subsection (2) above applies in relation—

a

to the actuary’s spouse F252or civil partner;

b

to a partner of the actuary;

c

to any child or step-child of the actuary who is under 18;

d

to any person (other than the society concerned or any subsidiary of that society) of whom the actuary is an employee; and

e

to any body corporate (other than the society concerned or any subsidiary of that society) of which the actuary is a director or which is controlled by him,

to a fine not exceeding level 5 on the standard scale; and

b

in the case of a continuing offence, to an additional fine not exceeding ~~F264one-tenth of that level~~F264one-tenth of the greater of £5,000 or level 4 on the standard scale for every day during which the offence continues.

6

If, on demand made of it under subsection (3) or (4) above, a friendly society or registered branch fails, in accordance with that subsection, to make available or, as the case may be, within 7 days of the demand, to send to a person a copy of the annual accounts, the society or branch shall be guilty of an offence and liable on summary conviction—

a

to a fine not exceeding level 3 on the standard scale; and

b

in the case of a continuing offence, to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

7

In subsection (5) above “the relevant period” means the period beginning at the end of the last financial year and ending with the date which falls 14 days before the annual general meeting following the end of that year.

8

The F94F361FCA shall keep one of the copies of documents received by it from a friendly society under subsection (1) above in the public file of the society.

78AF305Interpretation of Part 6

1

In this Part—

“annual accounts”, in relation to a friendly society or registered branch, means—
1. a
  the individual accounts required by section 69A, and
2. b
  any group accounts required by section 69E,
together with the notes to those accounts;
F399...
F406“firm” means any entity, whether or not a legal person, that is not an individual and includes a body corporate, a corporation sole, and a partnership or other unincorporated association;
“IAS accounts” means IAS individual accounts or IAS group accounts;
F358...
“income and expenditure account”, in relation to a friendly society or registered branch which prepares IAS accounts, includes an income statement or other equivalent financial statement required to be prepared by F455UK-adopted international accounting standards;
F209...
“non-directive friendly society” means a registered friendly society —
1. a
  to which subsections (2) and (3) of section 37 (restriction of combinations of business do not apply; and
2. b
  which does not carry on reinsurance business;
“parent undertaking” and “subsidiary undertaking” shall be construed in accordance with the provisions of F219section 1162 of the Companies Act 2006, read in conjunction with section 1161(1) of and Schedule 7 to that Act.
F406“senior statutory auditor” has meaning given by section 74A(1) above;
F430“UK-adopted international accounting standards” has the meaning given by section 474(1) of the Companies Act 2006;

b

“transferable securities” means anything which is a transferable security for the purposes of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments.

F9579. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part VII Disputes

Disputes relating to friendly societies

80 Determination of certain disputes by arbitration.

1

Subject to the following provisions of this section, any dispute between—

a

a member or person claiming through a member or under the rules of a friendly society or registered branch and the society or branch;

b

a person aggrieved who has ceased to be a member of a friendly society or registered branch, or a person claiming through such a person, and the society or branch or an officer of the society or branch;

c

a registered branch and the society of which it is a registered branch;

d

an officer of a registered branch and the society of which it is a registered branch; or

e

two or more registered branches, or any of their officers,

shall be determined by arbitration in the manner directed by the rules of the society or branch.

F961A

Nothing in subsection (1) above or in rules of a kind mentioned in that subsection prevents any person, in accordance with the scheme for which Part XVI of the Financial Services and Markets Act 2000 provides (the ombudsman scheme), from having a complaint dealt with under such a scheme before, or instead of, arbitration.

2

An application for the enforcement of an award on an arbitration under this section may be made to the county court.

3

An award made in such an arbitration shall, in Scotland—

a

subject to subsection (4) below, be final; and

b

be enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

4

An arbiter who has made an award in an arbitration under this section shall, on the application of a party to such arbitration, state a case for the opinion of the Court of Session on any question of law.

5

If the parties to a dispute of a description specified in subsection (1) above agree that it shall be determined by the county court or, in Scotland, the sheriff, it may be so determined instead of being determined by arbitration under this section.

6

If—

a

a party to a dispute of a description specified in subsection (1) above applies to the society or branch in accordance with the rules for determination of the dispute by arbitration;

b

no such determination has been made within the period of 40 days beginning with the day on which the application was made; and

c

either party applies for determination of the dispute by the county court or, in Scotland, the sheriff,

the dispute may be so determined.

7

If the society has registered branches—

a

the period of 40 days shall not begin to run until application has been made in succession to all the bodies entitled to determine the dispute by arbitration in accordance with the rules; but

b

the rules may not require a greater delay than 3 months between each successive determination by such a body.

8

and, in particular, the F337FCA may issue such guidance on those matters to friendly societies and registered branches as it thinks fit.

3

In this section—

“accede”, in relation to a scheme, means assume the obligations and rights of membership of the scheme;
“complaint” includes any complaint made by a member about action of a friendly society or branch which constitutes (in relation to that member) unfair treatment, maladministration or breach of any contractual or other duty and causes him pecuniary loss or inconvenience;
“member” in relation to a friendly society or branch includes any person who is or was a member of the society or branch or is claiming through a member or under the rules; and
“action” includes omissions.

I2482 Disputes arising out of loans of surplus funds to societies of different description.

1

Where—

a

a registered friendly society or a registered branch (“the lender”) has made or agreed to make advances under section 50 of the 1974 Act to another society or branch (“the borrower”); and

b

the lender is by reason of this empowered by the rules of the borrower to take part in the government or control of the borrower,

subject to subsection (3) below, section 80 above shall apply in relation to the determination of a dispute between the lender and the borrower relating to such an advance or agreement or to the rights of the lender or an officer of the lender under the rules of the borrower, as if the borrower were a branch of the lender.

2

In the application of section 80 above to any such dispute, references in that section to the rules of the society are references to the rules of the borrower.

3

Section 80 above shall not prevent the bringing of legal proceedings for the determination of any such dispute unless, before the commencement of the proceedings, application has been made for a reference under the rules of the borrower.

4

Proceedings for the determination of any such dispute may be brought F277in England and Wales in the county court or, in Northern Ireland, in a county court or, in Scotland, before the sheriff, whether or not the court would apart from this subsection have jurisdiction to entertain them.

5

The reference in subsection (1) above to advances under section 50 of the 1974 Act includes, in the case of a society formerly registered in Northern Ireland, a reference to advances made under section 42 of the M14Friendly Societies Act (Northern Ireland) 1970.

Disputes relating to industrial and provident societies

F42083 Disputes relating to industrial and provident societies.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disputes under National Savings Bank Act 1971 and National Debt Act 1972

F42684 Disputes under the National Savings Bank Act 1971 and National Debt Act 1972.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I25 Part VIII Amalgamations, Transfers of Engagements and Conversion of Friendly Societies into Companies

Annotations:

Commencement Information

I25

Pt. VIII (ss. 85-92) wholly in force; Pt. VIII not in force at Royal Assent see s. 126(2); Pt. VIII in force at 13.9.1993 by S.I. 1993/2213, art. 2(1), Sch. 3

Amalgamations

85 Amalgamation of friendly societies.

1

Any two or more friendly societies may, in accordance with this Part of this Act, amalgamate by establishing an incorporated friendly society as their successor.

for the purposes of section 391 (publication) the decision notice is to be treated as if it were a final notice rather than a decision notice.

4C

The giving of permission pursuant to subsection (4A) above is to be treated for the purposes of F459section 55Z1 of the Financial Services and Markets Act 2000 (right to refer matters to the F403Upper Tribunal) as if it were the determination of an application made by the successor under F211Part 4A of that Act, and Part IX of that Act (hearings and appeals) applies accordingly (but subject to subsection (4D) below).

4D

In the application of Part IX of that Act by virtue of subsection (4C) above, F302section 133A(4) (which F215prevents the action specified in a decision notice from being taken until after any reference and appeal) is omitted.

5

Where a friendly society is dissolved by subsection (4)(b) above, its registration under this Act or the 1974 Act shall be cancelled by the F292FCA.

6

Schedule 15 to this Act has effect for supplementing this section.

Transfers of engagements

C1686 Transfer of engagements by or to friendly society.

1

A friendly society may, in accordance with this Part of this Act, transfer its engagements to any extent to any of the following persons, that is to say—

F98a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

to an industrial and provident society;

F431c

to a company registered under the Companies Act 2006;

d

in relation to engagements the fulfilment of which will constitute the carrying on of insurance business, to any other person who is an F99insurer;

e

in relation to engagements the fulfilment of which will not constitute the carrying on of insurance business, to a person (or body of persons) who is not of a description specified in F100paragraph (b), (c) or (d) above.

2

A friendly society, in order to transfer any of its engagements, must—

a

comply with the applicable requirements of Part I of Schedule 15 to this Act;

b

resolve to transfer the engagements by special resolution;

c

if the transfer is of some but not all of its engagements, resolve to do so by an affected members’ resolution;

d

record the extent of the transfer as so resolved in an instrument of transfer of engagements; and

e

obtain the confirmation of the F450appropriate authority of the transfer;

and, on obtaining that confirmation, the instrument of transfer of engagements may be registered under subsection (4) below.

b

if the transfer is of all the society’s engagements, the society shall be dissolved;

but the transfer shall be deemed to have been effected immediately before any such dissolution.

6

The F329FCA shall keep a copy of the instrument and of the registration certificate issued under subsection (4) above—

a

where the transferee is a friendly society, in the public file of that society;

b

in any other case, in the public file of the society transferring the engagements.

7

Where a friendly society is dissolved by subsection (5)(b) above, its registration under this Act or the 1974 Act shall be cancelled by the F329FCA.

8

Where it is proposed that any engagements of a person other than a friendly society should be transferred to a friendly society, the proposed transferee, in order to undertake to fulfil them, must resolve to do so by special resolution.

9

For the purposes of this section—

a

an “affected members’ resolution” is a resolution approving a transfer of engagements which is passed by the appropriate majority of those members whose contracts with the society are included in the transfer and who are entitled to vote on the resolution; and

b

the “appropriate majority” means a majority consisting of not less than three quarters of those who vote on the resolution (in person or by proxy) at a meeting of the society or in a F191... ballot;

and sub-paragraphs (1)(b) and (c), (4), (5) and (6) of paragraph 7 of Schedule 12 to this Act shall apply to an affected members’ resolution as they apply to a special resolution.

10

Delegate voting may not take place on an affected members’ resolution; and where the rules of a friendly society provide for delegate voting on any matter, they must provide for voting by individual members on such resolutions.

11

Schedule 15 to this Act has effect for supplementing this section.

F10112

In this section “insurer" means—

a

a person who has permission under F255Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, F380...

F186b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Subsection (12) 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.

87 Actuary’s report as to margin of solvency.

1

This section applies where a friendly society (“the transferor”) proposes to transfer any of its engagements under section 86 above to another friendly society (“the transferee”).

2

Where—

F475a

the fulfilment of any of the engagements to be transferred will constitute the carrying on of insurance business in the United Kingdom or Gibraltar, and

b

the transferee will, after taking the proposed transfer into account, be F102required by rules made by the F354appropriate authority under Part 9A of the Financial Services and Markets Act 2000 to maintain the margin of solvency required by such rules,

the transferee shall furnish the F446appropriate authority with a report by the appropriate actuary as to whether it will immediately after the proposed transfer, possess that margin of solvency.

3

Where—

a

the fulfilment of any of the engagements will constitute the carrying on of long-term business, and

b

a report is not required to be furnished under subsection (2) above,

the F282appropriate authority may direct the transferee to furnish the F282appropriate authority with a report by the appropriate actuary as to whether it will, immediately after the proposed transfer, possess an excess of assets over liabilities.

4

The appropriate actuary has a right of access at all times to the books, accounts and vouchers of the transferor and of the transferee, and is entitled to require from the officers of either society such information and explanations as he thinks necessary to enable him to prepare a report under this section.

5

If the appropriate actuary fails to obtain all the information and explanations and the access to documents which, to the best of his knowledge and belief, are necessary for the purposes of a report under this section, he shall state that fact in his report.

6

An officer of a transferor or of the transferee shall be guilty of an offence if he knowingly or recklessly makes to the appropriate actuary a statement (whether written or oral) which—

a

conveys or purports to convey any information or explanations which he requires, or is entitled to require, for the purposes of a report under this section; and

b

is misleading, false or deceptive in a material particular.

7

A person guilty of an offence under subsection (6) above is liable—

a

on conviction on indictment, to imprisonment for a term not exceeding 2 years, or to a fine, or to both; and

b

on summary conviction, to imprisonment for a term not exceeding 6 months or to a fine not exceeding the statutory maximum, or to both.

C1588 Actuary’s report on transfer of long term business.

1

This section applies where—

F377a

a friendly society (“a transferor society”) proposes to transfer to any person engagements the fulfilment of which will constitute the carrying on of long term business in the United Kingdom or Gibraltar; or

b

a friendly society (a “transferee society”) proposes to undertake to fulfil any such engagements to be transferred to it from another friendly society.

2

The F330appropriate authority may direct a transferor society or a transferee society to furnish the F330appropriate authority with a report by an independent actuary on the terms of the proposed transfer and as to his opinion on the likely effects of the transfer on the members of the society who are long term policyholders.

3

A friendly society which is directed to furnish a report under this section shall, on payment of a reasonable fee, furnish a copy of the report to any person who asks for one at any time before the transfer in question is confirmed by the F330appropriate authority.

4

Subsections (4) to (7) of section 87 above shall apply in relation to an actuary preparing a report under this section as they apply to the appropriate actuary preparing a report under that section.

5

In this section—

“independent actuary”, in relation to a transfer of engagements, means an actuary who is not the appropriate actuary of a friendly society participating in the transfer;
“long term policyholder” means a member whose contract with a friendly society is a contract the effecting of which by the society constituted the carrying on of long term business.

89 Power of F204appropriate authority to alter requirements for transfer by friendly society.

1

If the F412appropriate authority is satisfied that it is expedient to do so in the interests of the members or potential members of a friendly society, it may give a direction under this section (“a direction”)—

a

modifying the requirements of subsection (2)(b) and (c) of section 86 above; and

b

modifying or disapplying the requirements of Part I of Schedule 15 to this Act,

in relation to a particular proposed transfer or to all transfers made by the society after the making of the direction.

F4161A

The PRA must consult the FCA before giving a direction under this section.

2

A direction may not modify the requirements of section 86(2) above so as to permit a society to resolve to make a transfer by a resolution passed by less than a majority, or to require more than a three-quarters majority, of those voting on the resolution.

3

The F412appropriate authority shall not give a direction unless—

a

an application has been made to it by not less than 10 per cent. of the members of the society concerned or, in the case of a society with more than 1000 members, by not less than 100 members of the society;

b

not less than one month before giving the direction the F412appropriate authority has served on the society concerned a notice stating that it proposes to make a direction and specifying the considerations which have led it to conclude that it would be expedient to give it;

c

the F412appropriate authority has considered any representations made by the society with respect to the notice mentioned in paragraph (b) above within such period (not being less than one month) from the date on which the society was served with the notice as the F412appropriate authority may allow; and

d

if the society so requests, the F412appropriate authority has afforded to it an opportunity of being heard by it within that period.

4

If the F412appropriate authority considers it expedient to do so in the interests of the members or potential members of the society concerned, it may vary or revoke a direction by a further direction.

5

On giving a direction in relation to a society, the F412appropriate authority shall serve on the society a copy of the direction, specifying the considerations which have led it to conclude that it is expedient to give the direction; but the F412appropriate authority may not give a direction unless all the considerations so specified were those, or among those, which were specified in the notice served on the society under subsection (3) above.

6

Notice of a direction shall be published by the F412appropriate authority in one or more of the London Gazette, the Belfast Gazette or the Edinburgh Gazette, as it thinks appropriate, and in such other ways as appear to the F412appropriate authority expedient for informing the public.

F1906A

The PRA must send to the FCA a copy of any direction it issues under this section.

F1037

The F104F415FCA shall keep a copy of any direction given under this section in the public file of the society concerned.

90 Power of F306appropriate authority to effect transfer of engagements.

1

Subject to the following provisions of this section the F360appropriate authority may give a direction under this section (“a direction”) providing for the transfer of such of the engagements of a friendly society (“the society”) as are specified in the order to a person so specified (“the transferee”).

2

The F360appropriate authority may give a direction if—

a

it considers that—

i

the society is unable to manage its affairs satisfactorily in relation to the engagements specified in the order; and

ii

a transfer of those engagements would be expedient to protect the interests of the members of the society; and

b

the proposed transferee has complied with paragraph 1 of Schedule 15 to this Act and has resolved to undertake to fulfil the engagements by special resolution or, if the F360appropriate authority consents to that mode of proceeding, by resolution of the committee of management;

but the F360appropriate authority may direct that paragraph (b) above shall be modified in relation to a particular proposed transfer (but not to permit a society to resolve to undertake to fulfil the engagements by less than a majority or more than a three-quarters majority of those voting).

F4102A

The PRA must consult the FCA before giving a direction under this section.

3

The F335appropriate authority may not give a direction if, were the transfer to be proposed to be made under section 86 above, it would be precluded from confirming it by F105paragraph 11 or any provision of paragraphs 13 to 17 of Schedule 15 to this Act.

4

F106At the same time as giving a warning notice to the society in accordance with section 58A(1) in relation to its proposal to give a direction, the F335appropriate authority shall publish notice of the proposed direction in one or more of the London Gazette, the Belfast Gazette or the Edinburgh Gazette, as it thinks appropriate, and, if it thinks appropriate, in one or more newspapers.

5

A notice published in pursuance of subsection (4)(b) above shall—

a

state that any interested party has the right to make representations to the F335appropriate authority with respect to the proposed direction;

b

specify a date determined by the F335appropriate authority before which any written representations or notice of a person’s intention to make oral representations must be received by the F335appropriate authority; and

c

specify a date determined by the F335appropriate authority as the day on which it intends to hear any oral representations.

6

After the date specified in pursuance of subsection (5)(b) above, the F335appropriate authority shall—

a

determine the time and place at which oral representations may be made;

b

b

for the treatment, in the hands of the company into which a friendly society has converted, of the property, rights and liabilities of the society immediately before its conversion and for the modification of any enactment in its application to any such property, rights and liabilities.

9

Schedule 15 to this Act has effect for supplementing this section.

Supplementary

92 Compensation for loss of office.

1

Subject to subsection (3) below, the terms of—

a

an amalgamation under section 85 above,

b

a transfer of engagements of a friendly society under section 86 above, or

c

a conversion under section 91 above,

may include provision for compensation for loss of office or diminution of emoluments attributable to the amalgamation, transfer or conversion to be paid by a participating friendly society to or in respect of any of the persons mentioned in subsection (2) below.

2

Those persons are—

a

the officers of the society which is to pay the compensation;

b

in the case of an amalgamation or transfer, the officers of any other participating society;

c

in the case of a transfer, the officers of any other person participating in the transfer; and

d

the appointed actuary (if any) of any society participating in the amalgamation or transfer.

3

Any such provision as is mentioned in subsection (1) above must be approved by the society which is to pay the compensation by a special resolution separate from any resolution approving the other terms of the amalgamation, transfer or conversion.

4

If compensation which has not been authorised in accordance with subsection (3) above is received by an officer, it shall be repaid.

5

In this section—

“compensation” includes the provision of benefits in kind;
“loss of office” includes, in relation to an officer of an incorporated friendly society holding office by virtue of his position in the society in a subsidiary of the society or body jointly controlled by the society, the loss of that office; and
“participating society”, in relation to an amalgamation or transfer, means a friendly society participating in the amalgamation or transfer and, in relation to the conversion of a friendly society, that society.

Part IX Miscellaneous

b

consider any representations made by the society within such period (not being less than fourteen days) from the date on which the notice is served as the F184FCA may allow;

and, if the society so requests, the F184FCA shall afford to it an opportunity of being heard by the F184FCA within that period.

13

Where under this section a society is treated as having agreed upon altered rules, the F184FCA shall prepare three copies of rules for the society and shall—

a

retain and register one copy,

b

send another to the secretary of the society, together with a certificate of registration, and

c

keep another copy, together with a copy of that certificate, in the public file of the society;

and the rules so registered shall be for all purposes the rules of the society until amended under the 1974 Act.

C1214

In this section “the transitional period” means the period beginning with the commencement date for this section and expiring with such day as the F111Treasury prescribe by order.

15

Subsections (5) to (14) above apply to the rules of a registered branch of an existing friendly society as they apply to the rules of the society.

94 Registered friendly societies and branches: validation and ratification by members.

1

Subject to subsection (3) below, if action not permitted by the rules of a registered friendly society or a registered branch is taken by or on behalf of the society or branch, the action is valid (whether or not it would be valid apart from this subsection) if all the members of the society or branch—

a

signified their agreement to it in writing before it was taken; or

b

signified their approval of it in writing before the end of the period of 28 days commencing with the day on which it was taken.

2

Subject to subsection (3) below, if a contract between a registered friendly society or branch and its members purports to create rights and obligations as to which the rules of the society or branch do not permit rights and obligations to be created, the contract shall be valid and shall bind all members of the society or branch if all members of the society or branch are parties to it.

3

This section does not validate the taking of any action or any term in a contract unless the matter falls within the capacity of a registered friendly society or branch under the 1974 Act or this Act.

4

In this section references to the members of a society or branch are to the members entitled to vote at a meeting of the society or branch.

I2795 Amendments of 1974 Act.

Schedule 16 to this Act (which contains amendments to the 1974 Act) shall have effect.

Societies registered in Northern Ireland

96 Extension of 1974 Act to Northern Ireland.

1

The 1974 Act shall extend to Northern Ireland.

2

Societies which, immediately before the commencement of subsection (1) above, were societies registered under any provision of section 1 of the M16Friendly Societies Act (Northern Ireland) 1970 shall be treated as if they were societies registered under the corresponding provision of section 7 of the 1974 Act.

3

A branch of a society registered under that Act of 1970 which is, immediately before the commencement of subsection (1) above, a registered branch of the society under that Act, shall be treated as a branch registered under the 1974 Act.

4

In consequence of subsections (1) to (3) above, the Friendly Societies Act (Northern Ireland) 1970 is repealed.

Other miscellaneous provisions

F11297. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11398. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

99 Insurance of lives of children under 10.

1

Subject to the following provisions of this section, if—

a

after this section comes into force a friendly society or registered branch F114or an industrial assurance company enters into a contract of insurance under which benefit in excess of £800 is payable on the death of any person; and

b

that person dies under the age of 10,

the obligation of the society, branch or company as to payment of benefit is only to pay £800 (without prejudice to any person’s right to recover part of the premiums paid).

2

Subsection (1) above does not apply where the benefit is payable to a person who has an interest in the life of the person on whose death it is payable.

C133

The F115Treasury may by order substitute some other sum for the sum for the time being specified in subsection (1) above.

F1164

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1175

For the purposes of this section—

a

“industrial assurance company" means a person, other than a friendly society, who immediately before the repeal of the Industrial Assurance Act 1923, carried on industrial assurance business, and after that repeal is subject to an existing liability or a liability which may accrue under any policy effected in the course of that business;

b

“industrial assurance business" means business which, immediately before the repeal of the Industrial Assurance Act 1923, fell within section 1(2) of that Act.

F118100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F119101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part X General and Supplementary

General

102 Power to amend, etc. to assimilate to company law or law relating to persons carrying on insurance business.

1

If, on any modification of the statutory provisions in force in Great Britain or Northern Ireland relating—

a

to companies; or

b

to persons or bodies of persons, other than friendly societies, whether incorporated or not, carrying on insurance business (including reinsurance business),

it appears to the Treasury to be expedient to modify the relevant provisions of this Act for the purpose of assimilating the law relating to friendly societies to the law as so modified, the Treasury may, by order, make such modifications of the relevant provisions of this Act as they think appropriate for that purpose.

2

Any member of the public shall be entitled, F134subject to paragraph (2A) below, to be furnished with a copy of all or any of the documents or records kept in the public file of a friendly society.

F1352A

The F271FCA may charge a reasonable fee for making the public file available to any person for inspection under subsection (1)(b) above, F280for making an electronic copy available under subsection (1A) above or for furnishing any person with a copy of any documents or records under subsection (2) above.

3

The F271FCA may keep in the public file of a registered friendly society any documents relating to a registered branch of the society which correspond to documents relating to the society which it is required to keep on that file.

105 Exemptions from stamp duty.

Stamp duty shall not be chargeable upon any document required or authorised by this Act, the 1974 Act or by the constitution of an incorporated friendly society or of a registered friendly society or registered branch.

105AF316Stamp duty land tax

1

A land transaction effected by or in consequence of—

a

an amalgamation of two or more friendly societies under section 85,

b

a transfer of the engagements of a friendly society under section 86; or

c

a transfer of the engagements of a friendly society pursuant to a direction given by the F328appropriate authority under section 90,

is exempt from charge for the purposes of stamp duty land tax.

2

Relief under this section must be claimed in a land transaction return or an amendment of such a return.

3

In this section—

“land transaction” has the meaning given by section 43(1) of the Finance Act 2003;
“land transaction return” has the meaning given by section 76(1) of that Act.

106 Officers and auditors not to be exempted from liability.

1

Subject to subsection (3) below, any provision to which this section applies, whether contained in the constitution of a friendly society or in any contract with a friendly society or otherwise, shall be void.

2

This section applies to any provision for—

a

exempting any member of the committee of management, other officer, or person employed as auditor of a friendly society from any liability which, by virtue of any rule of law, would otherwise attach to him in respect of the negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the society; or

b

indemnifying any such person against any such liability.

3

Subsection (1) above shall not prevent a friendly society—

a

from purchasing and maintaining for such a person insurance against any such liability; or

b

from indemnifying such a person against any liability incurred by him in defending any proceedings (whether criminal or civil) in which judgement is given in his favour or in which he is acquitted.

4

F350Section 1157 of the Companies Act 2006 (F444... which empowers the court to grant relief in certain cases of negligence, default, breach of duty or breach of trust) shall apply in relation to officers and auditors of a friendly society as it applies in relation to officers and auditors of a company.

5

For the purposes of this section a reference to an officer of a friendly society includes a reference to the appropriate actuary.

107 Time limit for commencing proceedings.

1

Notwithstanding any limitation on the time for the taking of proceedings contained in any enactment, summary proceedings for any offence under this Act F254, other than an offence in relation to which provision is made in subsection (1A), may, subject to subsection (2) below, be commenced F312by the FCA at any time within the period of one year beginning with the date on which evidence sufficient in F295its opinion to justify a prosecution for the offence, comes to its knowledge.

F3361A

Notwithstanding any limitation on the time for taking proceedings contained in any Act, summary proceedings for the offences under the provisions listed in subsection (1B), in the circumstances specified in that subsection in relation to those provisions, may be commenced by the PRA, after notifying the FCA, or by the FCA, after notifying the PRA, at any time within the period mentioned in subsection (1C).

1B

The provisions and the circumstances are—

a

section 20 (dissolution by consent), if the failure referred to in subsection (6) or (8) of that section relates to a failure to give notice to the PRA;

b

section 21 (voluntary winding up), if the failure referred to in subsection (4) of that section relates to a failure to send a copy of the resolution to the PRA in accordance with subsection (2) of that section;

c

section 25 (power of court to declare dissolution of building society void), if the failure referred to in subsection (5) of that section relates to a failure to send a copy of an order to the PRA in accordance with subsection (4) of that section;

d

section 62 (powers to obtain information and documents etc.), if—

i

the failure referred to in subsection (9) of that section is a failure to furnish any information or report, to produce any documents or material, or to provide any explanation or make any statement to the PRA, or

ii

the information, explanation or statement referred to in subsection (10) or (11) of that section is furnished, provided or made to the PRA;

e

section 65(4) and (5) (investigations), if the person appointed under subsection (1) of that section was appointed by the PRA;

f

section 87(6) (actuary’s report), if the PRA directed the transferee to furnish it with a report under subsection (3) of that section;

g

Schedule 10, paragraph 24 (winding up by the court), if the failure referred to in sub-paragraph (4) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (3) of that paragraph;

h

Schedule 10, paragraph 54 (winding up by the High Court), if the failure referred to in sub-paragraph (4) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (3) of that paragraph;

i

Schedule 14, paragraph 3 (auditors: appointment), if the failure referred to in sub-paragraph (2) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (1) of that paragraph;

j

Schedule 14, paragraph 9 (power of appropriate authority to require second audit), if the failure referred to in sub-paragraph (5) of that paragraph relates to a direction given by the PRA under paragraph (1) of that paragraph or a direction to send a copy of the report to the PRA in accordance with sub-paragraph (3) of that paragraph;

k

Schedule 14, paragraph 10 (removal of auditors), if the failure referred to in sub-paragraph (3) of that paragraph relates to a failure to give notice to the PRA in accordance with sub-paragraph (2) of that paragraph;

l

Schedule 14, paragraph 12 (resignation of auditors), if the default referred to in sub-paragraph (5) of that paragraph relates to a failure to give a copy of the notice to the PRA in accordance with sub-paragraph (4) of that paragraph; and

m

Schedule 14, paragraph 15 (offences of failing to comply with paragraph 14 (statement by person ceasing to hold office)), if—

i

the default referred to in sub-paragraph (1) of that paragraph relates to a failure to send a copy of a notice to the PRA in accordance with paragraph 14(2) or (7) of that Schedule, or

ii

the default referred to in sub-paragraph (2) is the default of a PRA-authorised person.

1C

The period is one year beginning with the date on which evidence comes to the knowledge of one or both of the FCA and the PRA, being evidence sufficient in the opinion of the FCA or the PRA (as the case may be) to justify a prosecution.

2

Nothing in subsection (1) F332or (1A) above shall authorise the commencement of proceedings for any offence at a time more than three years after the date on which the offence was committed.

3

For the purposes of F477subsections (1) and (1C) above a certificate, purporting to be signed by or on behalf of the F210FCA or the PRA, as to the date on which such evidence as is mentioned in F451the relevant subsection came to its knowledge, shall be conclusive evidence of that date.

F3074

In the application of this section to Scotland—

a

in subsection (1), omit the words “by the FCA”,

b

omit subsections (1A), (1B) and (1C), and

c

references to the FCA are to be read as references to the Lord Advocate.

5

In the application of this section to Scotland, F136section 136(1) of the Criminal Procedure (Scotland) Act 1995 shall apply for the purposes of this section as it applies for the purposes of that section.

108 Offences by bodies corporate, partnerships and unincorporated associations.

1

Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of any member of the committee of management, director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and liable to be proceeded against and punished accordingly.

2

Where the affairs of a body corporate are managed by the members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

3

Where a partnership is guilty of an offence under this Act, every partner, other than a partner who is proved to have been ignorant of or to have attempted to prevent the commission of the offence, shall also be guilty of that offence and be liable to be proceeded against and punished accordingly.

4

Where an unincorporated association (other than a partnership) is guilty of an offence under this Act—

a

every officer of the association who is bound to fulfil any duty of which the breach is the offence; or

b

if there is no such officer, every member of the governing body other than a member who is proved to have been ignorant of or to have attempted to prevent the commission of the offence,

shall also be guilty of the offence and be liable to be proceeded against and punished accordingly.

109 Defence of due diligence.

In any proceedings for an offence under this Act, it shall be a defence for a person charged to prove that he took all reasonable precautions and exercised all due diligence to avoid the commission of such an offence by himself or any person under his control.

F368110Jurisdiction of magistrates' courts in Northern Ireland.

1

In Northern Ireland, a friendly society or an officer of a friendly society may be prosecuted for a summary offence under this Act before a magistrates' court acting for the county court division in which the registered office of the society is situated.

2

~~Subsection (1) is without prejudice to the provisions of the Magistrates' Courts (Northern Ireland) Order 1981 as to the jurisdiction of a magistrates' court.~~

111 Evidence.

F1371

Any document bearing the seal or stamp of the F418FCA shall be received in evidence without further proof.

1A

Any document purporting to have been signed by a person authorised to do so on behalf of the F404FCA or the PRA, and every document purporting to be signed by any inspector or public valuer under this Act, shall, in the absence of any evidence to the contrary, be received in evidence without proof of the signature.

1B

In subsections (1) and (1A), “document" means any document issued, received or created by the F404FCA or the PRA (or, as the case may be, by any inspector or public valuer under this Act) for the purposes of or in connection with this Act.

2

Any printed document purporting to be a copy of the rules or memorandum of an incorporated friendly society or the rules of a registered friendly society or a registered branch and certified by the secretary or other officer of the society or branch to be a true copy of its rules or memorandum as registered, shall be received in evidence and shall, in the absence of any evidence to the contrary, be deemed to be a true copy of its rules or memorandum.

112 Records of friendly societies.

1

Subject to any other provision of this Act or regulations under it, any record to be kept by a friendly society may be kept in any manner.

2

Where any such record is not kept by making entries in a bound book, but by some other means, adequate precautions shall be taken for guarding against falsification and facilitating its discovery.

3

The power in subsection (1) above includes power to keep the record by recording matters otherwise than in legible form so long as the recording is capable of being reproduced in a legible form; and any duty imposed by or under this Act to allow inspection of, or to furnish a copy of, the record or any part of it is to be treated as a duty to allow inspection of, or to furnish, a reproduction of the recording or of the relevant part of it in a legible form.

C144

The F138Treasury may by regulations, make such provision in addition to subsection (3) above as F139they consider appropriate in connection with such records as are kept otherwise than in legible form; and the regulations may make modifications of this Act so far as it relates to the records of friendly societies.

5

If default is made in complying with this section the society shall be guilty of an offence and liable on summary conviction—

a

to a fine not exceeding level 4 on the standard scale; and

b

in the case of a continuing offence, to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

113 Service of notices.

1

This section has effect in relation to any notice, directions or other document required or authorised by or under any provision of this Act or by the rules of a friendly society to be served on any person other than the F429FCA or the PRA but subject, in the case of notices or other documents to be given or sent to members of a friendly society, to any provision of its rules.

2

Any such document may be served on the person in question—

a

In this section, a document is sent electronically if is it sent by electronic means or in electronic form.

115 Provision as to information supplied for purposes of social security.

1

Subject to any exceptions or conditions prescribed by regulations of the Secretary of State, the Secretary of State shall at the request of any person claiming benefit from an incorporated friendly society provide the society for the purposes of the claim with a copy or abstract of any medical certificate relating to that person and supplied by him to the Secretary of State for the purposes of the enactments relating to social security.

2

Where the Secretary of State furnishes an incorporated friendly society, in connection with a claim for benefit from the society with information relating to a claim or award under those enactments, the expenses incurred in connection with his doing so by the Secretary of State or any other government department shall be treated as expenses in carrying those enactments into effect.

F1413

In this section, references to the Secretary of State shall be construed as including references to the Department of Health and Social Services for Northern Ireland.

Interpretation

I28116 Friendly societies etc.

In this Act—

F364“ballot” means—
1. a
  a postal ballot (within the meaning of paragraph 8 of Schedule 12),
2. b
  an electronic ballot (within the meaning of paragraph 8A of that Schedule), or
3. c
  a combined ballot (within the meaning of paragraph 8B of that Schedule);
“friendly society” means an incorporated friendly society or a registered friendly society;
“incorporated friendly society” means a society incorporated under this Act;
“registered branch” means a branch of a registered friendly society which is separately registered within the meaning of the 1974 Act;
“registered friendly society” means a society registered within the meaning of the 1974 Act by virtue of section 7(1)(a) of that Act or any enactment which it replaced.

I29117 Insurance business etc.

1

For the purposes of this Act—

“annual contribution income” means, in relation to a friendly society’s long term business, the income of the society in a financial year without any deduction for reinsurance cessions;
F142“commitment" means, in relation to a friendly society to which section 37(2) applies, a commitment represented by insurance business of any class of Head A of Schedule 2 to this Act;
“insurance business” means long term business and general business but F143, except for the purposes of sections 87 and 88 above, does not include the operations of a society whose benefits vary according to the resources available and which require each of its members to contribute on a flat-rate basis;
F144“direct insurance business" means insurance business other than reinsurance business and “direct insurance" shall be construed accordingly;
“long term business” means insurance business of any of the classes specified in head A of Schedule 2 to this Act; and
“general business” means insurance business of any of the classes specified in head B of that Schedule.

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.

F1876

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3337

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1458

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2689

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I30118 Financial year of friendly societies.

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.

I31119 General interpretation.

1

In this Act, unless the context otherwise requires—

“the 1974 Act” means the M18Friendly Societies Act 1974;
“actuary” means an actuary possessing F146such qualifications, if any, as may be specified in rules made by the Authority under section 340 of the Financial Services and Markets Act 2000 (and subsections (3) to (6) of that section apply in relation to an actuary appointed by virtue of any provision of this Act as they apply in relation to an actuary appointed in compliance with such rules);
“annuities on human life” does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons;
F472...
“appointed actuary” means the actuary appointed F147in accordance with rules made under section 340 of the Financial Services and Markets Act 2000;
“the appropriate actuary” means—
1. a
  if the society is under F148a duty imposed by rules made by the Authority under section 340 of the Financial Services and Markets Act 2000, the society’s appointed actuary; and
2. b
  if it is not under F149such a duty, an actuary appointed to perform the function in question;
F304“the appropriate authority” means—
1. a
  in relation to a society which is a PRA-authorised person, the PRA; and
2. b
  in relation to a society which is not a PRA-authorised person, the FCA;
F150...
F150...
F150...
F150...
“committee of management” means the committee of management or other directing body of a society or branch;
F246...
“contract of insurance” includes any contract the effecting of which constitutes the carrying on of insurance business by virtue of section 117 above;
F151“controller” has the meaning given by section 55A above;
“the court” except in relation to the winding-up of an incorporated friendly society, means—
1. a
  in the case of a body whose registered office is situated in England and F462Wales, the county court;
2. aa
  in the case of a body whose registered office is situated in Northern Ireland, the county court for the district in which the office is situated;
3. b
  in the case of a body whose registered office is situated in Scotland, the sheriff in whose jurisdiction the office is situated;
and, in relation to the winding-up of an incorporated friendly society, means the court which has jurisdiction under the applicable winding-up legislation to wind-up the society;
F150...
F378...
F346“EEA State” has the meaning given by Schedule 1 to the Interpretation Act 1978 (c. 30);
F152“EFTA State” means an EEA State which is not a member State;
F265“electronic address” means any number or address used for the purposes of sending or receiving documents or information by electronic means;
F304“the FCA” means the Financial Conduct Authority;
“financial year” is to be construed in accordance with section 118;
F374...
F275...
F276...
“group business” is to be construed in accordance with section 11 above;
“jointly controlled body” is to be construed in accordance with section 13 above;
F275...
F153“manager”, in relation to a friendly society to which section 37(2) or (3) above applies, means any person (other than an employee of a society) appointed by the society to manage any part of its insurance business, or any employee of the society (other than a chief executive) who, under the immediate authority of a member of the committee of management or chief executive of the society–
1. a
  exercises managerial functions, or is responsible for maintaining accounts or other records of the society; and
2. b
  is not a person whose functions relate exclusively to business conducted from a place of business which is not in F436the United Kingdom or Gibraltar;
“memorandum” has the meaning given by paragraph 4(3) of Schedule 3 to this Act;
“modifications”, in relation to enactments, includes additions, omissions and amendments F213and cognate expressions are to be construed accordingly;
“non-insurance business” means business falling within head C of Schedule 2 to this Act;
“notice” means written notice and “notice to” a person means notice given to that person, and “notify” shall be construed accordingly;
F150...
“officer” means—
1. a
  in relation to a registered friendly society or a registered branch—
  1. i
    a trustee;
  2. ii
    the treasurer, secretary and chief executive (however described);
  3. iii
    a member of the committee of management; and
  4. iv
    a person appointed by the society or branch to sue or be sued on its behalf; or
2. b
  in relation to an incorporated friendly society, a member of the committee of management, the chief executive (however described) and the secretary;
F304“the PRA” means the Prudential Regulation Authority;
F304“PRA-authorised person” has the meaning in section 2B of the Financial Services and Markets Act 2000;
“the public file”, in relation to a friendly society, means the file relating to the society which the F439FCA is required to maintain under section 104 above;
“registered address”, in relation to a member of an incorporated friendly society, has the meaning given by paragraph 14(6) of Schedule 3 to this Act;
F375...
F275...
F432“the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);
“special resolution” has the meaning given by paragraph 7 of Schedule 12 to this Act;
“subscription” includes any premium or other sum (however described) payable, in respect of the provision of benefits, by (or on behalf of) a member of a friendly society under the rules of the society;
“subsidiary” is to be construed in accordance with section 13 above; and
F279...
F240...
F275...
F478...

F1541AA

Any reference in this Act to the seal of the F262FCA 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 F291FCA’s common seal).

F2881A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1551B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1951C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2441D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

F2853

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

119AF156 Meaning of “associate".

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 F424or civil partner 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;

to read it, and

b

to retain a copy of it.

5

For the purposes of this section, a document or information can be read only if—

a

it can be read with the naked eye, or

b

to the extent that it consists of images (for example photographs, pictures, maps, plans or drawings), it can be seen with the naked eye.

6

The provisions of this section apply whether the provision of this Act in question uses the word “send” or uses other words (such as “furnish”, “circulate”, “provide”, “produce”, “supply”, “give” or “deliver”) to refer to the sending of a document or information.

ending with the end date specified for the purposes of this paragraph in the provision of, or made under, this Act that requires or permits A to send the document to B.

5

If the document or information is absent from the website for part of the period referred to in subsection (4), the absence is to be disregarded if it is wholly attributable to circumstances that it would not be reasonable to have expected A to prevent or avoid.

6

A is not to be regarded as making a document available on a website for the purposes of this section if the website is the F193the FCA’s or the PRA’s website (an electronic copy of the document having been placed there in reliance on section 104(1A)(b)).

F157119B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

I32120 Amendments and repeals.

1

The enactments specified in Schedule 21 to this Act shall have effect with the amendments made by that Schedule.

2

The enactments specified in Schedule 22 to this Act are repealed to the extent specified in the third column of that Schedule.

I33121 Orders and regulations.

1

Any power of the Treasury F158. . . to make regulations or an order under this Act is exercisable by statutory instrument.

2

Any statutory instrument containing such regulations or such an order, other than an order under F198section 5 above or section 126 below, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

3

Any power conferred by this Act to make such regulations or such an order includes power—

a

to make different provision for different cases; and

b

to make transitional, consequential or supplementary provision.

F159122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I34123 Power to make transitional, consequential etc. provisions.

1

The Treasury may by regulations make such transitional and consequential provisions and such savings as they consider necessary or expedient in preparation for, in connection with, or in consequence of—

a

the coming into force of any provision of this Act; or

b

the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

2

Regulations under this section may make modifications of any enactment contained in this or in any other Act.

124 Northern Ireland.

1

This Act extends to Northern Ireland.

F1602

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

125 Channel Islands and Isle of Man.

1

Her Majesty may by Order in Council direct that any of the provisions of this Act or any instrument made under it shall extend, with such modifications (if any) as may be specified in the Order, to—

a

any of the Channel Islands; or

b

the Isle of Man.

2

An Order in Council under this section may make such transitional, incidental or supplementary provision as appears to Her Majesty to be necessary or expedient.

I35126 Short title and commencement.

1

This Act may be cited as the Friendly Societies Act 1992.

P12

This Act shall come into force on such day as the Treasury may by order appoint and different days may be appointed for different provisions or different purposes.

3

An order under subsection (2) above may contain such transitional provisions and savings (whether or not involving the modification of any statutory provision) as appear to the Treasury necessary or expedient in connection with the provisions brought into force.