Friendly Societies Act 1992

[F1 57A Covering of commitments situated in another member State. U.K.

(1) Where a friendly society intends to cover any commitments which are situated in a member State other than the United Kingdom—

(a) through an establishment in the United Kingdom, or

(b) through an establishment in a member State other than that in which the commitments will be situated,

it shall before doing so give notice of its intention to the Commission.

(2) The notice shall indicate—

(a) the member State in which the insurance is to be provided;

(b) the nature of the commitments which the society intends to cover;

(c) the member State in which the establishment through which the commitments will be covered is situated.

(3) Where the society intends to cover commitments situated in more than one member State, the information specified above may be contained in a single notice but must be set out separately for each member State.

(4) Where a friendly society has duly notified the Commission of its intention to cover commitments situated in another member State where administrative authorisation is required to do so then, if the original notice related—

(a) only to commitments in respect of which such authorisation is required; or

(b) only to commitments in respect of which such authorisation is not required,

and the society subsequently intends to extend its activities to commitments falling within the other category, it shall before doing so (without prejudice to the generality of the preceding provisions of this section) comply with subsections (1) to (3) above in relation to those commitments.

(5) A friendly society with the intention mentioned in subsection (1) above may apply to the Commission for a certificate attesting—

(a) that the society possesses the minimum margin of solvency calculated in accordance with Article 19 of the first life Directive, and

(b) that by virtue of this Act and the society’s authorisation under section 32 above, issued in accordance with Article 6(1) of that Directive, the society is able to operate outside the member State of establishment.

(6) A friendly society with the intention mentioned in subsection (1) above in respect of commitments to be covered through an establishment in the United Kingdom may apply to the Commission for a certificate—

(a) indicating the classes of insurance business which the society is authorised to carry on in the United Kingdom; and

(b) stating that the Commission does not object to the society covering the commitments through such an establishment.

(7) The Commission shall, if it thinks an application under subsection (5) or (6) above ought to be granted, issue the certificate.

(8) If the Commission refuses such an application it shall give notice to the society of its decision and of the reasons for it.

(9) In this section—

• “commitment" does not include a commitment represented by insurance business of class VII of Head A of Schedule 2 to this Act;

• “friendly society" means a friendly society to which section 37(2) above applies.]

Textual Amendments

F1 S. 57A inserted (1.1.1994) by S.I. 1993/2519, reg. 4(2)