The Friendly Societies (Activities of a Subsidiary) Order 1996

Statutory Instruments

1996 No. 3009

FRIENDLY SOCIETIES

The Friendly Societies (Activities of a Subsidiary) Order 1996

Made

6th December 1996

Laid before Parliament

9th December 1996

Coming into force

6th January 1997

The Friendly Societies Commission, with the consent of the Treasury, in exercise of the powers conferred upon it by section 13(8) of the Friendly Societies Act 1992(1), hereby makes the following Order:

Citation and Commencement

1.  This Order may be cited as the Friendly Societies (Activities of a Subsidiary) Order 1996 and shall come into force on 6th January 1997.

Variation of Schedule 7

2.  Schedule 7 to the Friendly Societies Act 1992 (which relates to activities which may be carried on by a subsidiary of or body jointly controlled by an incorporated friendly society) is amended by—

(a) adding to paragraph 6 after the words “pension funds” the words “or for friendly societies or for other bodies whose business consists of any activity falling within paragraphs 1 to 5 above or paragraphs 7 to 14 below”;

(b) substituting the words “or paragraphs 11 to 14 below” at the end of paragraph 10, for the words “or paragraph 11 or 12 below”; and

(c) inserting after paragraph 12, the following paragraphs—

“13.   The establishment and management of investment companies with variable capital falling within regulation 3(1) of the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996(2) (an open-ended investment company).

14.   The establishment and management of companies which are approved as investment trusts for the purposes of section 842 of the Income and Corporation Taxes Act 1988(3).”.

In witness whereof the common seal of the Friendly Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 13 of Schedule 1 to the Friendly Societies Act 1992 on 2nd December 1996.

L.S.

Michael Cook

Secretary to the Commission

We consent to this Order.

Bowen Wells

Roger Knapman

Two of the Lords Commissioners of Her Majesty’s Treasury

6th December 1996

Explanatory Note

(This note is not part of the Order)

This Order varies Schedule 7 to the Friendly Societies Act 1992 (which relates to the activities which may be carried on by a subsidiary of, or a body jointly controlled by, an incorporated friendly society). Two new activities are added at paragraphs 13 and 14, the establishment and management of open-ended investment companies and of investment trusts. The activity set out in paragraph 6 of providing fund management services to the trustees of pension funds is extended so that such services may be provided to friendly societies or to other bodies whose business consists of any activity falling within the other paragraphs of Schedule 7. The activity set out in paragraph 10 of providing administrative services to friendly societies or other bodies whose business consists of any activity falling within the other paragraphs of Schedule 7 is extended so that such services may be provided to a body whose business consists of an activity falling within the new paragraphs.

Subsidiaries which carry on these activities are required to be authorised under the relevant legislation to conduct the activity.

A compliance cost assessment of the effect that this instrument would have on the cost of business is available from:

The Secretary Friendly Societies Commission 15 Great Marlborough St London W1V 2LL

(1)

1992 c. 40.

(2)

S.I. 1996/2827.

(3)

1988 c. 1.