Valid from 13/01/1993
(1)On an application duly made by a friendly society (“the society”), the Commission shall, subject to section 37 below, grant unconditional or conditional authorisation, or refuse to grant authorisation, in accordance with the following provisions of this section.
(2)The Commission shall grant unconditional authorisation if it is satisfied that—
(a)the chairman of the committee of management, the secretary and the chief executive of the society are each fit and proper persons to hold their respective offices;
(b)the members of the committee of management, with the secretary and chief executive, have the capacity and intention to direct the affairs of the society in accordance with the criteria of prudent management;
(c)the society is likely to comply with any requirements of this Act which relate to the business to be covered by the authorisation; and
(d)the interests of the members of the society will be adequately protected without the imposition of conditions.
(3)Subject to subsection (4) below, if the Commission is not satisfied as mentioned in subsection (2) above, it shall refuse to grant authorisation.
(4)Where the Commission is not satisfied as mentioned in subsection (2)(b), (c) and (d) above but is satisfied that the imposition of conditions will secure—
(a)the direction of the affairs of the society in accordance with the criteria of prudent management;
(b)the likelihood of compliance by the society with any requirements of this Act which relate to the business to be covered by the authorisation; and
(c)the adequate protection of the interests of the members of the society,
it shall grant authorisation subject to such conditions as it thinks fit for securing those objects.
(5)The conditions that may be so imposed may—
(a)relate to any class (or part of a class) or description of business in respect of which authorisation is sought;
(b)require the society to take steps or to refrain from adopting a particular course of action or to restrict the scope of its business in a particular way;
(c)require the society to take steps with regard to the activities of any subsidiary or body jointly controlled by the society.
(6)Without prejudice to the generality of subsection (5) above, conditions imposed under subsection (4) above may—
(a)impose limitations on the effecting of contracts of insurance or contracts for non-insurance benefits or the accepting of new members;
(b)require the removal of an officer of the society or of any registered branch;
(c)where the society has branches, require the society to take steps with regard to the activities of any registered branch.
(7)Conditions imposed under subsection (4) above—
(a)may be added to or varied from time to time by agreement between the Commission and the society; and
(b)may be revoked at any time by the Commission if it is satisfied that they are no longer needed for the purpose for which they were imposed;
and, on adding to, varying or revoking any such conditions, the Commission shall (unless it considers it unnecessary to do so by reason of the nature of the changes) send to the secretary of the society a statement of the terms of all the subsisting conditions to which its authorisation is subject.
(8)Subsections (2) to (7) above apply in relation to applications for authorisation made under section 33 above with the omission—
(a)of subsection (2)(a) and (b);
(b)of the reference to subsection (2)(b) in subsection (4); and
(c)of subsection (4)(a).
(9)Subsections (2) to (7) above apply in relation to a society applying for authorisation to carry on both long term and general business by virtue of section 37(8) below—
(a)with the substitution, in subsection (2), for the words “unconditional authorisation", of the words “ authorisation subject only to the conditions required by section 37 below ”;
(b)with the insertion in subsections (2)(d) and (4), after the words “imposition of", of the word “ further ”.