(This note is not part of the Regulations)
These Regulations revoke the Friendly Societies (Authorisation No. 2) Regulations 1993 (S.I. 1993/2521) and re-enact those provisions with minor modification to implement the relevant provisions of—
(a)the First Life Directive, 79/267/EEC (O.J. No. L63, 13.3.79, p.1), following its amendment by the Third Life Directive, 92/96/EEC (O.J. No. L360, 9.12.92, p.1); and
(b)the First Non-Life Directive, 73/239/EEC (O.J. No. L228, 16.8.73, p.3), following its amendment by the Third Non-Life Directive, 92/49/EEC (O.J. No. L228, 11.8.92, p.1).
The Regulations prescribe the information which an incorporated or a registered friendly society is required to provide to the Friendly Societies Commission (“the Commission”) when applying for authorisation under section 32 of the Friendly Societies Act 1992 (“the Act”). These Regulations do not apply to applications under section 33 of the Act.
The information required varies depending on whether—
(a)the society wishes to be authorised to carry on long term, general or non-insurance business;
(b)the society is already authorised in respect of other classes of insurance business;
(c)the society is a society to which section 37(2) or (3) of the Act applies; or
(d)the Commission already possesses the information.
Regulation 4 and Schedules 1 and 2 implement the relevant requirements of the First Life and Non-Life Directives and extend the majority of those requirements to all friendly societies seeking authorisation to carry on insurance business, notwithstanding that certain societies may not be within the scope of those Directives.
Paragraph 23 of Schedule 1 and paragraph 20 of Schedule 2 will enable the Commission to ascertain whether the restriction on combinations of business in section 37 of the Act is being met. Paragraph 24 of Schedule 1 and paragraph 21 of Schedule 2 will enable the Commission to ascertain whether the restriction on commercial business in section 38 of the Act is being met.
Regulation 4 and Schedule 3 relate to applications for authorisation to carry on non-insurance business. The statement referred to in paragraph 3 of Schedule 3 to these Regulations is not needed unless that society will be required to maintain a margin of solvency in accordance with sections 48 and 49 of the Act in respect of any insurance business carried on by it or to be carried on by it.
Regulation 5 makes transitional provision to ensure that any application for authorisation under section 32 of the Act received by the Commission prior to the entry into force of these Regulations continues to be a valid application notwithstanding the changes introduced by these Regulations.
A review of the cost of compliance with these Regulations has been undertaken and the resulting compliance cost assessment may be purchased from the Secretary, Friendly Societies Commission, 15 Great Marlborough Street, London W1V 2AX.