Part IV Authorisation of Friendly Societies’ Business
Restrictions on business of certain authorised societies
I137 Restriction on combinations of business.
F11
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F11A
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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 F2appropriate authority 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 F2appropriate authority 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 F2appropriate authority shall revoke the direction.
7
If—
a
the F2appropriate authority 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 F2appropriate authority shall revoke the direction.
F17A
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F18
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F19
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