Friendly Societies Act 1992

Requirements for carrying on insurance business U.K.

1 (1) A friendly society to which section 37(2) or (3) above applies shall not carry on direct insurance business of a class or part of a class through an overseas branch in [F1 an EEA State] other than the United Kingdom unless–

(a) the society is authorised under section 32 above to carry on insurance business of that class or part of a class; and

(b) the requirements of this paragraph have been complied with in relation to that branch.

(2) The requirements of this paragraph are–

(a) that the society has given to the Commission a notice containing both the requisite EC details and the requisite UK details;

(b) that the Commission has given to the supervisory authority in the [F1 EEA State] in which the overseas branch is to be established (“the [F1 EEA State] of the branch")–

(i) a notice which contains the requisite EC details; and

(ii) a certificate in accordance with sub–paragraph (3) below; and

(c) that either–

(i) that authority has informed the Commission of the conditions which, in the interest of the general good, must be complied with by the society in carrying on insurance business through the branch; or

(ii) the period of two months beginning with the day on which the Commission gave that authority the certificate mentioned in paragraph (b) above has elapsed.

(3) A certificate is in accordance with this sub–paragraph if it–

(a) attests that the society has the minimum margin of solvency calculated in accordance with such of the following as are appropriate–

(i) Articles 16 and 17 of the first general insurance Directive, and

(ii) Articles 19 and 20 of the first life Directive; and

(b) indicates the classes of insurance business which the society is authorised to carry on in the United Kingdom.

(4) The Commission shall, within the period of three months beginning with the date on which the society’s notice was received–

(a) give the notice and certificate referred to in sub–paragraph (2)(b) above; or

(b) refuse to give either or both of those documents.

(5) The Commission shall, within the period of three months referred to in sub–paragraph (4) above, notify the society–

(a) that it has given the notice and certificate referred to in sub–paragraph (2)(b) above, stating the date on which it did so; or

(b) that it has refused to give either or both those documents, stating the reasons for the refusal.

(6) The Commission shall not refuse to give the notice referred to in sub–paragraph (2)(b) above unless, having regard to the business to be carried on through the overseas branch, it appears to it that the criteria of prudent management would not or might not continue to be fulfilled in respect of the society.

(7) Where the supervisory authority in the member State of the branch has informed the Commission as mentioned in paragraph (2)(c)(i) above, the Commission shall forward the information to the society.

Textual Amendments

F1 Words in Sch. 13B para. 1 substituted (1.1.1998) by S.I. 1997/2849, reg. 3

2 (1) A friendly society to which section 37(2) or (3) above applies shall not change the requisite EC details of an overseas branch–

(a) which has been established by it in [F2 an EEA State] other than the United Kingdom (“the [F2 EEA State] of the branch"); and

(b) through which it carries on direct insurance business,

unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2) Subject to sub–paragraph (3) below, the requirements of this paragraph are–

(a) that the society has given a notice to the Commission, and to the supervisory authority in the [F2 EEA State] of the branch, stating the details of the proposed change not less than one month before the change is to take place;

(b) that the Commission has sent to that authority a notice in accordance with sub–paragraph (4)(a) below; and

(c) that either–

(i) that authority has informed the society of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the society in carrying on insurance business through the branch; or

(ii) the period of two months beginning with the day on which the society gave that authority the notice of the proposed change in accordance with paragraph (a) above has elapsed.

(3) In the case of a change occasioned by circumstances beyond the society’s control, the requirements of this paragraph are that the society shall as soon as practicable (whether before or after the change) give a notice to the Commission, and to the supervisory authority in the [F2 EEA State] of the branch, stating the details of the change.

(4) The Commission shall, as soon as practicable after receiving a notice under sub–paragraph (2)(a) above–

(a) give notice to the the supervisory authority in the [F2 EEA State] of the branch informing it of the proposed change; or

(b) refuse to give such notice.

(5) The Commission shall, as soon as practicable after making a decision under sub–paragraph (4) above, notify the society–

(a) that it has given the notice referred to in that sub–paragraph, stating the date on which it did so; or

(b) that it refused to give the notice, stating the reasons for that refusal.

(6) The Commission shall not refuse to give the notice referred to in sub–paragraph (4)(a) above unless, having regard to the proposed change, it appears to it that the criteria of prudent management would not or might not continue to be fulfilled in respect of the society.

Textual Amendments

F2 Words in Sch. 13B para. 2 substituted (1.1.1998) by S.I. 1997/2849, reg. 3

3 (1) A friendly society to which section 37(2) or (3) above applies shall not change the requisite UK details of an overseas branch–

(a) which has been established by it in [F3 an EEA State] other than the United Kingdom; and

(b) through which it carries on direct insurance business,

unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2) Subject to sub–paragraph (3) below, the requirements of this paragraph are that the society has given a notice to the Commission stating the details of the proposed change not less than one month before the change is to take place.

(3) In the case of a change occasioned by circumstances beyond the society’s control, the requirements of this paragraph are that the society shall as soon as practicable (whether before or after the change) give a notice to the Commission stating the details of the change.

Textual Amendments

F3 Words in Sch. 13B para. 3 substituted (1.1.1998) by S.I. 1997/2849 reg. 3