Part IV Authorisation of Friendly Societies’ Business

Restriction on carrying on unauthorised business

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

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authorisation to carry on business

32 Grant of authorisation by Commission: general.

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Applications from certain existing friendly societies.

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34 Grant of unconditional or conditional authorisation.

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35 Extension of current authorisation.

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36 Imposition of conditions on current authorisation.

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F736A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on business of certain authorised societies

I137 Restriction on combinations of business.

F81

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F81A

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2

This subsection applies to a friendly society which carries on long term business—

a

if its rules do not contain provision for calling up additional contributions, for reducing benefits or for claiming assistance from other persons who have undertaken to provide it; or

b

if its annual contribution income from long term business exceeded 500,000 ECU for 3 consecutive years and it is not the subject of a direction under subsection (5) below;

and, for the purposes of paragraph (b) above, years ending before 1st January 1985 shall be disregarded.

3

This subsection applies to a friendly society which carries on general business—

a

if its rules do not contain provision for calling up additional contributions or for reducing benefits; or

b

if its annual contribution income from general business in any previous year exceeded 1,000,000 ECU and it is not the subject of a direction under subsection (5) below;

and, for the purposes of paragraph (b) above, years ending before 1st January 1993 shall be disregarded.

C14

In subsections (2) and (3) above a reference to a year, in relation to annual contribution income, is a reference to any financial year of a society for which, at the relevant time, accounts have been or ought to have been prepared.

5

The F9Authority may, if it is satisfied that it is consistent with the international obligations of the United Kingdom to do so, direct that a friendly society—

a

which is, by virtue only of paragraph (b) of subsection (2) above, a society to which that subsection applies; or

b

which is, by virtue only of paragraph (b) of subsection (3) above, a society to which that subsection applies;

shall, unless the direction is revoked, be treated as not being a society to which subsection (2) or, as the case may be, subsection (3) above applies.

6

If—

a

the F9Authority has given a direction under subsection (5) above in relation to a society such as is mentioned in subsection (5)(a) above; and

b

the society’s annual contribution income from long term business exceeds 500,000 ECU for 3 consecutive years ending after a date specified in the direction,

the F9Authority shall revoke the direction.

7

If—

a

the F9Authority has given a direction in relation to a society such as is mentioned in subsection (5)(b) above; and

b

the society’s annual contribution income from general business in a year ending after a date specified in the direction exceeded 1,000,000 ECU,

the F9Authority shall revoke the direction.

F87A

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F88

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F89

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38 Restriction on commercial business.

F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of Commission in relation to authorised societies

39 Power to direct application for fresh authorisation.

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1240 Withdrawal of authorisation in respect of new business.

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41 Withdrawal of authorisation to carry on insurance business.

F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

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

F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43 Interpretation of Part IV.

F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .