Friendly Societies Act 1992

Interpretation U.K.

116 Friendly societies etc. U.K.

In this Act—

• [F1 “ballot” means—

  (a)

  a postal ballot (within the meaning of paragraph 8 of Schedule 12),

  (b)

  an electronic ballot (within the meaning of paragraph 8A of that Schedule), or

  (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.

Textual Amendments

F1 Words in s. 116 inserted (12.4.2011) by The Mutual Societies (Electronic Communications) Order 2011 (S.I. 2011/593), arts. 1(1), 18

Commencement Information

I1 Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

117 Insurance business etc. U.K.

(1) For the purposes of this Act—

• “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;

• [F2 “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 [F3 , 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;

• [F4 “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.

F5 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Definition in s. 117(1) inserted (1.1.1994) by S.I. 1993/2519, reg. 7(1)

F3 Words in definition in s. 117(1) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 114 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F4 Definition in s. 117(1) added (1.9.1994) by S.I. 1994/1984, reg. 29(1)

F5 S. 117(6) omitted (31.12.2020) by virtue of The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 11; 2020 c. 1, Sch. 5 para. 1(1)

F6 S. 117(7) omitted (31.12.2020) by virtue of The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 11; 2020 c. 1, Sch. 5 para. 1(1)

F7 S. 117(8) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 205(1)

F8 S. 117(9) omitted (31.12.2020) by virtue of The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 11; 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I2 Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

118 Financial year of friendly societies. U.K.

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

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

Commencement Information

I3 Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

119 General interpretation. U.K.

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

• “the 1974 Act” means the M1 Friendly Societies Act 1974;

• “actuary” means an actuary possessing [F9 such 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;

• F10 ...

• “appointed actuary” means the actuary appointed [F11 in accordance with rules made under section 340 of the Financial Services and Markets Act 2000];

• “the appropriate actuary” means—

  (a)

  if the society is under [F12 a 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

  (b)

  if it is not under [F13 such a] duty, an actuary appointed to perform the function in question;

• [F14 “the appropriate authority” means—

  (a)

  in relation to a society which is a PRA-authorised person, the PRA; and

  (b)

  in relation to a society which is not a PRA-authorised person, the FCA;]

• F15 ...

• F15 ...

• F15 ...

• F15 ...

• “committee of management” means the committee of management or other directing body of a society or branch;

• F16 ...

• “contract of insurance” includes any contract the effecting of which constitutes the carrying on of insurance business by virtue of section 117 above;

• [F17 “controller” has the meaning given by section 55A above;]

• “the court” except in relation to the winding-up of an incorporated friendly society, means—

  (a)

  in the case of a body whose registered office is situated in England and [F18 Wales, the county court;

  (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;

  (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;

• F15 ...

• F19 ...

  [F20 “EEA State” has the meaning given by Schedule 1 to the Interpretation Act 1978 (c. 30);]

  [F21 “EFTA State” means an EEA State which is not a member State;]

• [F22 “electronic address” means any number or address used for the purposes of sending or receiving documents or information by electronic means;]

• [F14 “the FCA” means the Financial Conduct Authority;]

• “financial year” is to be construed in accordance with section 118;

• F23 ...

• F24 ...

• F25 ...

• “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;

• F24 ...

• [F26 “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–

  (a)

  exercises managerial functions, or is responsible for maintaining accounts or other records of the society; and

  (b)

  is not a person whose functions relate exclusively to business conducted from a place of business which is not in [F27 the 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 [F28 and 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;

• F15 ...

• “officer” means—

  (a)

  in relation to a registered friendly society or a registered branch—

  (i)

  a trustee;

  (ii)

  the treasurer, secretary and chief executive (however described);

  (iii)

  a member of the committee of management; and

  (iv)

  a person appointed by the society or branch to sue or be sued on its behalf; or

  (b)

  in relation to an incorporated friendly society, a member of the committee of management, the chief executive (however described) and the secretary;

• [F14 “the PRA” means the Prudential Regulation Authority;]

• [F14 “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 [F29 FCA] 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;

• F30 ...

• F24 ...

• [F31 “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

• F32 ...

  F33 ...

  F24 ...

• F34 ...

[F35 (1AA) Any reference in this Act to the seal of the [F36 FCA] 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 [F37 FCA’s] common seal).]

F38 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39 (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F40 (1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41 (1D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

F42 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9 Words in the definition of “actuary” in s. 119(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F10 Words in s. 119(1) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 49(2)(a) (with Sch. 12)

F11 Words in the definition of “appointed actuary” in s. 119(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F12 S. 119(1): Words in para. (a) of the definition of “appropriate actuary” substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iv)(A) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F13 S. 119(1): Words in para. (b) of the definition of “appropriate actuary” substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iv)(B) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F14 Words in s. 119(1) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 49(2)(c) (with Sch. 12)

F15 Definitions of “the central office”, “the Chief Registrar”, “collecting society”, “the Commission”, “the criteria of prudent management” and “notifiable voting rights” in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F16 Words in s. 119(1) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(a)(i)

F17 S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984 reg. 30(a)

F18 Words in s. 119(1) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 85(2); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11)

F19 Words in s. 119(1) omitted (29.6.2008) by virtue of The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), arts. 1(2), 10(a)

F20 Words in s. 119(1) substituted (29.6.2008) by The Friendly Societies Act 1992 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1140), arts. 1(2), 10(b)

F21 S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984, reg. 30(b)

F22 Words in s. 119(1) inserted (12.4.2011) by The Mutual Societies (Electronic Communications) Order 2011 (S.I. 2011/593), arts. 1(1), 4(1)

F23 Words in s. 119(1) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(a)(ii)

F24 Words in s. 119(1) omitted (11.1.2005) by virtue of The Life Assurance Consolidation Directive (Consequential Amendments) Regulations 2004 (S.I. 2004/3379), regs. 1, 3(3)(b)

F25 Words in s. 119(1) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(a)(iii)

F26 S. 119(1): definitions of “the life Directives” and “manager” substituted for definition of “the life Directives” (1.9.1994) by S.I. 1994/1984, reg. 30(d)

F27 Words in s. 119(1) substituted (31.12.2020) by The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 12(a)(i) (as amended by S.I. 2019/680, regs. 1(3), 7(4)); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in s. 119 inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Friendly Societies Act 1992 (International Accounting Standards and Other Accounting Amendments) Order 2005 (S.I. 2005/2211), art. 1(2), Sch. para. 4

F29 Word in s. 119(1) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 49(2)(b) (with Sch. 12)

F30 Words in s. 119(1) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(a)(iv)

F31 Words in s. 119(1) inserted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(b)

F32 Words in s. 119(1) omitted (31.12.2020) by virtue of The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 12(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F33 Words in s. 119(1) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(3)(a)(v)

F34 Words in s. 119(1) omitted (17.8.2001 for specified purposes and 1.12.2001 for all other purposes) by virtue of The Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 (S.I. 2001/2617), arts. 2, Sch. 3 para. 115(a)(vii), Sch. 4 (with art. 13(3), Sch. 5)

F35 S. 119(1AA) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by The Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 (S.I. 2001/2617), arts. 2, 8(1), 13(1), Sch. 3 para. 115(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F36 Word in s. 119(1AA) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 49(3)(a) (with Sch. 12)

F37 Word in s. 119(1AA) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 49(3)(b) (with Sch. 12)

F38 S. 119(1A) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(4)

F39 S. 119(1B) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 205(5)

F40 S. 119(1C) omitted (31.12.2020) by virtue of The Friendly Societies (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1039), regs. 1, 12(b); 2020 c. 1, Sch. 5 para. 1(1)

F41 S. 119(1D) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(4)

F42 S. 119(3) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 19(4)

Commencement Information

I4 Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

Marginal Citations

M1 1974 c. 46.

[F43 119A Meaning of “associate". U.K.

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

(a) the wife or husband [F44 or 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;

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

Textual Amendments

F43 S. 119(A) inserted (1.9.1994) by S.I. 1994/1984 reg. 31

F44 Words in s. 119A(1)(a) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 142; S.I. 2005/3175, art. 2(2)

Marginal Citations

M2 1982 c.50.

[F45 119AA. Meaning of electronic form, electronic means etc. U.K.

(1) The following provisions apply for the purposes of this Act.

(2) A document or information is sent in electronic form if it is sent—

(a) by electronic means (for example, by email or fax), or

(b) by any other means while in electronic form (for example, sending a disk in the post).

References to “electronic copy” have a corresponding meaning.

(3) A document or information is sent by electronic means if it is—

(a) sent initially and received at its destination by means of electronic equipment for the processing (which expression includes digital compression) or storage of data, and

(b) entirely transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means.

References to “electronic means” have a corresponding meaning.

(4) A document or information sent in electronic form must be sent in a form, and by a means, that the sender reasonably considers will enable the recipient—

(a) 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.

Textual Amendments

F45 Ss. 119AA, 119AB inserted (12.4.2011) by The Mutual Societies (Electronic Communications) Order 2011 (S.I. 2011/593), arts. 1(1), 4(2)

119AB. Communications by means of a website U.K.

(1) For the purposes of this Act, a person (A), other than the [F46 FCA and the PRA], makes a document or information available on a website to another person (B) if each of the following conditions is satisfied.

(2) The first condition is that B—

(a) has agreed (generally or specifically) that A may make the document or information available to B in that manner, and

(b) has not revoked that agreement.

(3) The second condition is that A has notified B of—

(a) the presence of the document or information on the website,

(b) the address of the website,

(c) the place on the website where the document or information may be accessed, and

(d) how to access the document or information.

(4) The third condition is that the document or information is present on the website for the whole of the period—

(a) beginning when A sends B the notification referred to in subsection (3) or, if later, when the document or information first appears on the website, and

(b) 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 [F47 the FCA’s or the PRA’s] website (an electronic copy of the document having been placed there in reliance on section 104(1A)(b)).]

Textual Amendments

F45 Ss. 119AA, 119AB inserted (12.4.2011) by The Mutual Societies (Electronic Communications) Order 2011 (S.I. 2011/593), arts. 1(1), 4(2)

F46 Words in s. 119AB substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 50(a) (with Sch. 12)

F47 Words in s. 119AB substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 50(b) (with Sch. 12)

F48 119B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F48 S. 119B repealed (1.12.2001) by S.I. 2001/2617, arts. 2, 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)