88 Actuary’s report on transfer of long term business.U.K.
(1)This section applies where—
[F1(a)a friendly society (“a transferor society") proposes to transfer to any person engagements the fulfilment of which will constitute–
(i)in the case of a society to which subsection (2) or (3) of section 37 above applies, the carrying on of long term business in one of more [F2EEA State]; or
(ii)in the case of a society to which neither of those subsections applies, the carrying on of long term business in the United Kingdom; or]
(b)a friendly society (a “transferee society”) proposes to undertake to fulfil any such engagements to be transferred to it from another friendly society.
(2)The [F3appropriate authority] may direct a transferor society or a transferee society to furnish the [F3appropriate authority] with a report by an independent actuary on the terms of the proposed transfer and as to his opinion on the likely effects of the transfer on the members of the society who are long term policyholders.
(3)A friendly society which is directed to furnish a report under this section shall, on payment of a reasonable fee, furnish a copy of the report to any person who asks for one at any time before the transfer in question is confirmed by the [F3appropriate authority].
(4)Subsections (4) to (7) of section 87 above shall apply in relation to an actuary preparing a report under this section as they apply to the appropriate actuary preparing a report under that section.
(5)In this section—
“independent actuary”, in relation to a transfer of engagements, means an actuary who is not the appropriate actuary of a friendly society participating in the transfer;
“long term policyholder” means a member whose contract with a friendly society is a contract the effecting of which by the society constituted the carrying on of long term business.
Textual Amendments
F1S. 88(1)(a) substituted (1.9.1994) by S.I. 1994/1984 reg. 27
F2Words in s. 88(1)(a)(i) substituted (1.1.1998) by S.I. 1997/2849 reg. 3
F3Words in s. 88(2)(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 37 (with Sch. 12)
Modifications etc. (not altering text)
C1S. 88: power to modify conferred (16.1.2009) by Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (c. 26), ss. 3, 6(2); S.I. 2009/36, art. 2