Part V Regulation of Friendly Societies’ Business
Inspections etc.
67BF1 Statutory notice.
1
Subject to subsection (7) below, unless the requirements of subsection (2) below are fulfilled no friendly society to which section 37(2) above applies shall enter into a contract the effecting of which constitutes–
a
the carrying on of long term business in the United Kingdom; or
b
the provision there of long term insurance.
2
The requirements of this subsection are that–
a
the society sends by post to the other party to the contract, at or before the time when it is entered into, a statutory notice in relation to that contract; or
b
a respresentative of the society gives such notice to that party at that time.
3
Where a statutory notice is sent to the other party to the proposed contract before the time when it is entered into, the society shall, not later than 14 days after the contract has become binding, inform the party in writing that it has done so.
4
For the purposes of this section a statutory notice is a notice which–
a
contains such matters (and no others) and is in such form as may be prescribed by regulations made under section 2(2) of the European Communities Act 1972 M1 and complies with such requirements (whether as to type, size, colour or disposition of lettering, quality or colour of paper, or otherwise) as may be so prescribed for securing that the notice is easily legible; and
b
has annexed to it a form of notice of cancellation of such description as may be so prescribed for use under section 67C below.
5
The Commission may, on the application of a friendly society, alter the requirements in relation to the notice referred to in subsection (4)(a) above so as to adapt those requirements to the circumstances of that society or to any particular kind of contract proposed to be entered into by that society.
6
Any society which contravenes this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale but, without prejudice to section 67C(2) below, no contract shall be invalidated by reason of the fact that the society has contravened this section in relation to that contract.
7
Subsection (1) above does not apply to–
a
a contract the effecting of which by the society constitutes the carrying on of investment business (within the meaning of the Financial Services Act 1986 M2);
b
a contract the effecting of which by the society constitutes the carrying on of industrial assurance business;
c
a contract the other party to which is habitually resident in a member State other than the United Kingdom;
d
a contract the other party to which is not an individual;
e
a contract of term assurance effected for a period of six months or less; or
f
a contract of reinsurance.
8
In sections 67C and 67D below “statutory notice" has the same meaning as in this section.