The Friendly Societies Act 1992 (Commencement No.6 and Transitional Provisions) Order 1993

Explanatory Note

(This note is not part of the Order)

Article 2 of this Order brings into force for all remaining purposes the provisions of the Friendly Societies Act 1992 listed in Schedules 2 and 5 on 13th September 1993 and 1st January 1994 respectively, brings into force generally the provisions of the Act listed in Schedules 3 and 6 on 13th September 1993 and 1st January 1994 respectively and brings into force the provisions of the Act listed in Schedule 4 for specified purposes on 13th September 1993.The provisions listed in Schedule 2 concern the management and administration of friendly societies and the regulation of their business.The provisions listed in Schedule 3 concern amalgamations, transfers of engagements and the conversion of friendly societies into companies.Schedule 4 lists various regulation-making powers and Schedule 5 lists provisions on the appointment of actuaries, investigations into the financial position of friendly societies and accounts and audit.Schedule 6 comprises a number of miscellaneous provisions.The provisions of Schedules 2 and 5 were brought into force for friendly societies incorporated under the 1992 Act by the Friendly Societies Act 1992 (Commencement No.3 and Transitional Provisions) Order 1993 (S.I. 1993/16) (C.1) and will now come into force for friendly societies registered under the Friendly Societies Act 1974.Article 2 also brings into force section 31 of the Act which requires friendly societies to be authorised to carry on business in the UK in relation to registered friendly societies whose specified income determined in accordance with Schedule 1 to the Order exceeded £3,000 for 1991 or for the last preceding year for which an annual return was submitted.Section 31 is brought into force on 1st January 1994 for such societies which do not apply for authorisation before that date and is also brought into force on that date in respect of the insurance business for which a society is deemed to be authorised under section 32(7).Section 31 is brought into force on 1st July 1994 for such societies which do apply for authorisation before 1st January 1994.

The Order also contains transitional provisions for registered friendly societies.Articles 3 and 4 concern the requirements in the 1992 Act to have a chief executive and to maintain a register of members.Articles 5 and 6 apply to pending amalgamations and transfers of engagements of registered friendly societies and collecting societies under the 1974 Act. Articles 7 and 8 are intended to ensure that registered friendly societies' outstanding accounting, reporting and auditing obligations are complied with and article 9 preserves the reporting obligations of registered collecting societies for 1993.Article 10 enables registered friendly societies not yet required to be authorised under the 1992 Act to continue to carry out purposes specified in Schedule 1 to the 1974 Act until they change their rules to conform with the 1992 Act purposes or are required to be authorised.