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Friendly Societies Act 1992

Type Public General Act

Publication 1992-03-16

Last updated 2020-12-31

State In force

Department Statute Law Database

Source legislation.gov.uk

articles 13

Reform history JSON API

(3A) (1) The functions of the Board under this Act shall be exercisable in relation to persons such as are mentioned in section 1(2)(aa) above only in cases where the friendly societies in question are qualifying friendly societies. (2) Friendly societies are qualifying friendly societies if— (a) they are authorised friendly societies; (b) the Board is satisfied that they fall within subsection (3) or (4) below; or (c) the Board has at any time been so satisfied. (3) A society falls within this subsection if— (a) it is required by section 48 of the Friendly Societies Act 1992 to maintain a margin of solvency; and (b) it possesses the margin of solvency which it is required to maintain. (4) A society falls within this subsection if— (a) it is not required by section 48 of the Friendly Societies Act 1992 to maintain a margin of solvency; but (b) the value of its assets exceeds its liabilities. (5) It shall be the duty of the Commission to send the Board any abstract or other information required by the Board to enable it to perform the functions conferred on it by this section.

3

In section 4 (protection confined to United Kingdom policies) after subsection (2) there shall be inserted the following subsection—

(3) A contract of insurance with a friendly society is a United Kingdom policy for the purposes of this Act at any time when the performance by the society of any of its obligations under the contract would constitute the carrying on by the society in the United Kingdom of insurance business of any class.

4

In the heading preceding section 5 (duties of the Board in case of companies in liquidation) after the word “companies” there shall be inserted “and friendly societies”.

5

After section 5 there shall be inserted the following section—

(5A) (1) The functions of the Board under sections 8A, 10 and 11 below are exercisable in the case of a registered friendly society if— (a) an order has been made for the winding up of the society on a petition under section 87 of the Friendly Societies Act 1974; (b) it has terminated under paragraph (a) of subsection (1) of section 93 of that Act upon the happening of an event; (c) it has been dissolved in accordance with paragraph (b) of that subsection; or (d) an award has been made under section 95 or section 95A of that Act. (2) The functions of the Board under sections 8, 10 and 11 below are exercisable in the case of an incorporated friendly society if— (a) an instrument of dissolution has been approved under section 20 of the Friendly Societies Act 1992; (b) a special resolution that it be wound up voluntarily has been passed under section 21 of that Act; or (c) an order has been made for the winding up of the society on a petition under section 22 or 52 of that Act. (3) In this Act “closing society” means a friendly society in the case of which the Board’s functions are exercisable under subsection (1) or (2) above. (4) References in this Act to the beginning of the liquidation of a closing society are references— (a) in a case falling within paragraph (a) of subsection (1) above, to the date of the order; (b) in a case falling within paragraph (b) of that subsection, to the date of the happening of the event; (c) in a case falling within paragraph (c) of that subsection, to the date of signature of the instrument of dissolution; (d) in a case falling within paragraph (d) of that subsection, to the date of the award; (e) in a case falling within paragraph (a) of subsection (2) above, to the date of signature of the instrument of dissolution; (f) in a case falling within paragraph (b) of that subsection, to the date of the passing of the special resolution; and (g) in a case falling within paragraph (c) of that subsection, to the date of the order.

6

(1) In section 8 (general policies other than compulsory policies), in subsection (1) after the word “policy”, in the first place where it occurs, there shall be inserted “issued by an authorised insurance company”.

(2) In subsection (4) of that section, for the words “this Act” there shall be substituted “the application of this Act to authorised insurance companies”.

7

After section 8 there shall be inserted the following section—

(8A) Subject to sections 13 and 14 below, where the Board’s functions are exercisable in relation to a closing society, it shall be the duty of the Board to secure that a sum equal to ninety per cent of the amount of any liability of the society to a private policyholder (within the meaning of section 6(7) above) under the terms of a contract the effecting of which constituted the carrying on of general business of any class and which was a United Kingdom policy at the beginning of the liquidation is paid to the member as soon as reasonably practicable after the beginning of the liquidation.

8

(1) In section 10 (long term policies), in subsection (1) for the words “this Act” there shall be substituted “the application of this Act to insurance companies”.

(2) At the end of that section there shall be added the following subsection—

(3) In this Act references to a “long term policy” include, in relation to a friendly society, references to a contract the effecting of which constituted the carrying on of long term business of any class, not being a contract of reinsurance.

9

In section 11 (special provision for future benefits under long term policies) after subsection (3) there shall be inserted the following subsection—

(3A) This section applies to a long term policy of a closing society as it applies to a long term policy of a company in liquidation but— (a) with the addition at the end of subsection (3) above of the words “subject to the giving up of any right to a payment on dissolution of the society”; and (b) in subsection (5) below, with the insertion after the words “insurance company” of the words “or friendly society”.

10

After section 11 there shall be inserted the following section—

(11A) Sections 12, 13, 14(2) to (9) and 15 shall apply to a closing society as they apply to a company in liquidation.

11

At the end of section 16 (companies in financial difficulties) there shall be added the following subsection—

(10) This section applies to a friendly society, not being a closing society— (a) with the substitution of the following subsections for subsection (1)— (1) A friendly society, not being a closing society, is a society in financial difficulties for the purposes of this section if— (a) it is required by section 42 or 46 of the Friendly Societies Act 1992 to send abstracts of actuaries' reports to the Commission and the most recent abstract so sent shows that it has ceased to fall within subsection (2) or subsection (3) of section 3A above; (b) it fails to comply with a direction of the Board under subsection (1A) below; (c) a provisional liquidator of the society has been appointed under section 135 of the Insolvency Act 1986 or, as the case maybe, Article 115 of the Insolvency (Northern Ireland) Order 1989; or (d) it has been proved on a winding-up petition to be unable to pay its debts. (1A) A direction under this subsection is a direction that a society, not required by section 42 or 46 of the Friendly Societies Act 1992 to send abstracts of actuaries' reports to the Commission, satisfy the Board that it possesses sufficient assets to meet its liabilities. (1B) It shall be the duty of the Commission to send the Board any information required by the Board to enable it to determine whether it is satisfied that a society to which a direction under subsection (1A) above has been given possesses sufficient assets to meet its liabilities. (b) with the omission of subsection (6)(a).

12

In section 17 (special provision with respect to long term business of a company in financial difficulties) at the end of subsection (8) there shall be added the words “and this section applies to friendly societies in financial difficulties as it applies to companies in financial difficulties”.

13

In section 18(1)(a) (definition of “general business expenditure”), for the words “or 8” there shall be substituted “8 or 8A”.

14

At the end of section 19 there shall be inserted the following subsection—

(11) This section, Schedule 2 to this Act and section 20 below apply to a closing society as they apply to a company in liquidation and to a society in financial difficulties as they apply to a company in financial difficulties.

15

At the end of section 21 ( levies on authorised insurance companies) there shall be added the following subsection—

(10) This section and Schedule 3 apply to qualifying friendly societies as they apply to authorised insurance companies carrying on general business in the United Kingdom, except that contributions in respect of discretionary benefits shall be disregarded in the application of subsections (4), (5) and (6) above by virtue of this subsection.

16

In section 25 (application of surplus funds by the Board), in subsection (1), after the words “United Kingdom”, there shall be inserted “and to qualifying friendly societies carrying on such business”.

17

At the end of section 27 (disclosure of documents and information to the Board) there shall be added the words “in relation to companies”.

18

(1) Section 32 (interpretation) shall be amended as follows.

(2) In subsection (1), at the appropriate places in alphabetical order, there shall be inserted the following definitions—

“authorised friendly society” means a society authorised under section 32 of the Friendly Societies Act 1992 to carry on in the United Kingdom insurance business such as is mentioned in section 31 of that Act;

“closing society” has the meaning given by section 5A(3) above;

“the Commission” means the Friendly Societies Commission;

“friendly society” has the same meaning as in the Friendly Societies Act 1992;

“incorporated friendly society” means a friendly society incorporated under the Friendly Societies Act 1992;

“qualifying society” is to be construed in accordance with section 3A(2) above;.

(3) In subsection (2), after the word “above”, there shall be inserted “but subject to subsections (2A) and (2B) below”.

(4) After subsection (2) there shall be inserted the following subsections—

(2A) Any reference to a policy holder in this Act is to be construed, in the application of this Act to friendly societies, as a reference to a person who has entered into a contract of insurance with that society. (2B) References in this Act to insurance business of any class are references, in the application of this Act to friendly societies, to insurance business of a class specified in head A or head B of Schedule 2 to the Friendly Societies Act 1992.

(5) After subsection (4) there shall be inserted the following subsection—

(4A) For the purposes of this Act, a liability of a closing society towards a member arising otherwise than under the terms of the member’s contract with the society shall be treated as a liability under the terms of the contract if the liability of the society arises from any failure on the part of the society to perform an obligation under the contract to provide any services or facilities on the occurrence of any event to which the risk under the contract relates.

19

(1) In Schedule 3 (additional provisions with respect to levies on authorised insurance companies) after paragraph 4 there shall be inserted the following paragraphs—

(4A) In the application of this Schedule to a friendly society— (a) paragraph 4 above shall have effect with the substitution for any reference to the Secretary of State of a reference to the Commission; and (b) paragraph 9 below shall be omitted.

(4B) (1) Any person who causes or permits to be included in a statement sent to the Commission under paragraph 4 above as applied by this paragraph any information which he knows to be false in a material particular or recklessly causes or permits to be so included any information which is false in a material particular shall be guilty of an offence and liable— (a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both; (b) on summary conviction, to a fine not exceeding the statutory maximum. (2) Any friendly society which makes default in complying with paragraph 4 above as so applied shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.

SCHEDULE 18

Part I — Amendments of Provisions Other Than Schedule 11

1

The following section shall be substituted for section 23—

(23) A friendly society which carries on investment business in the United Kingdom is an authorised person as respects any investment business which it carries on for or in connection with any of the activities mentioned in Schedule 2 to the Friendly Societies Act 1992.

2

In section 113 (periodical fees), for subsection (3) there shall be substituted the following subsection—

(3) So long as a friendly society is authorised under section 23 above to carry on investment business it shall pay to the Friendly Societies Commission such periodical fees as the Commission may by regulations specify.

3

In section 141 (indemnity schemes), in subsection (2), for the words from “the Chief Registrar" onwards there shall be substituted “ the Friendly Societies Commission ”.

4

In section 179 (restrictions on disclosure of information), in subsection (3), for paragraph (e) there shall be substituted—

(e) the Friendly Societies Commission

5

In section 180 (exceptions from restrictions on disclosure), in subsection (1), for paragraph (h) there shall be substituted—

(h) for the purpose of enabling or assisting the Friendly Societies Commission to discharge its functions under this Act, the enactments relating to friendly societies or the enactments relating to industrial assurance

6

In section 204(1) (service of notices), for the words from “the Chief Registrar" onwards there shall be substituted “ or the Friendly Societies Commission ”.

7

In section 207(1) (interpretation), the following definitions shall be inserted after the definition of “exempted person"—

“friendly society”, “incorporated friendly society” and “registered friendly society” have the meaning given by section 116 of the Friendly Societies Act 1992

8

In section 210(3) (expenses and receipts), for the words from “the Chief Registrar" onwards there shall be substituted “ the Friendly Societies Commission ”.

9

(1) In the following provisions of Schedule 14 (restriction of Rehabilitation of Offenders Act 1974)—

(a) paragraph 5 of Part I,

(b) paragraph 7 of Part II, and

for the words “Chief Registrar of friendly societies, the Registrar of Friendly Societies for Northern Ireland" there shall be substituted “ Friendly Societies Commission ”.

(2) In paragraph 6 of Part I of that Schedule, for the word “Registrar" there shall be substituted “ Friendly Societies Commission ”.

Part II — Amendments of Schedule 11

10

(1) Subject to paragraph 11 below, for each of the following phrases—

(a) “the Registrar",

(b) “the Chief Registrar of friendly societies", and

wherever occurring, there shall be substituted the words “ the Commission ”.

(2) Subject to sub-paragraph (3) below, for the word “he" or “him", in each place where it occurs, there shall be substituted “ the Commission ”.

(3) Sub-paragraph (2) above does not apply where the word “he" or “him" refers to the Secretary of State or to the Chairman of any body.

11

(1) In paragraph 1, in the definition of “a recognised self-regulating organisation for friendly societies", for the words “an order of the Registrar" there shall be substituted “ a recognition order ”.

(2) In that paragraph, in the definition beginning “a member society"—

(a) for the words “an appropriate" there shall be substituted “ a ”; and

(b) the words from “and, for the purposes" onwards shall be omitted.

(3) In that paragraph, for the definition of “the Registrar" there shall be substituted—

“the Commission” means the “Friendly Societies Commission" and; “recognition order” means— (a) an order made by the Chief Registrar of friendly societies or the Registrar of Friendly Societies for Northern Ireland before Schedule 18 to the Friendly Societies Act 1992 came into force; or (b) an order made by the Commission after that Schedule came into force

12

In paragraph 3(1)—

(a) for the word “his" there shall be substituted “ the Commission’s ”; and

(b) for the words from “an order" onwards there shall be substituted “ a recognition order in respect of the organisation declaring the applicant to be a recognised self-regulating organisation for friendly societies ”.

13

In paragraph 4(2), for the words “the Friendly Societies Act 1974, or as the case may be, the Friendly Societies Act (Northern Ireland) 1970" there shall be substituted the words “ Parts V and VIII of the Friendly Societies Act 1992 ”.

14

In paragraph 7(1), for the words “himself alter, its rules" there shall be substituted “ itself alter, the rules of the organisation ”.

15

In paragraph 13A(6), for the word “his" there shall be substituted “ its ”.

16

In paragraph 26, for sub-paragraph (2) there shall be substituted the following sub-paragraph—

(2) The powers mentioned in sub-paragraph (1) above are— (a) in relation to a registered friendly society, those under subsection (1) of section 87 (inspection and winding up of registered friendly societies) and subsections (1) and (2) of section 91 (cancellation and suspension of registration) of the Friendly Societies Act 1974; (b) in relation to an incorporated friendly society, those under section 22 (winding up by court: grounds and petitioners) of the Friendly Societies Act 1992; and (c) in relation to a registered friendly society or an incorporated friendly society, those under the following provisions of the Friendly Societies Act 1992, namely, section 36 (imposition of conditions on current authorisation), section 39 (power to direct application for fresh authorisation), section 40 (withdrawal of authorisation in respect of new business), section 51 (power to forbid acceptance of new members), section 52 (application to court), section 62 (power to obtain information and documents etc.), section 65 (investigations on behalf of Commission) and section 66 (inspections and special meetings: general), and the sections referred to above shall apply in relation to the exercise of those powers by virtue of this paragraph as they apply in relation to their exercise in the circumstances mentioned in those sections

17

In paragraph 28(6), for the word “his" there shall be substituted “ its ”.

18

In paragraph 29, in sub-paragraph (1)—

(a) in paragraph (a) for the word “it" there shall be substituted “ the body ”; and

(b) in paragraph (b) for the word “they" there shall be substituted “ the Commission and the Secretary of State ”.

19

After paragraph 31 there shall be inserted the following paragraph—

(31A) (1) Where any functions under this Act are for the time being exercisable by a transferee body the Commission shall, before issuing an authorisation under section 32 of the Friendly Societies Act 1992 to a friendly society which is carrying on or proposes to carry on in the United Kingdom insurance business or non-insurance business which is investment business— (a) seek the advice of the transferee body with respect to any matters which are relevant to those functions of the body and relate to the society, its proposed business or persons who are or will be, within the meaning of the Friendly Societies Act 1992, members of the committee of management or other officers of the society; and (b) take into account any advice on those matters given to the Commission by the transferee body before the application is decided. (2) In sub-paragraph (1) above— (a) “insurance business” has the meaning given by section 117(1) of the Friendly Societies Act 1992; and (b) “non-insurance business” has the meaning given by section 119(1) of that Act. (3) The Commission may for the purpose of obtaining the advice of a transferee body under sub-paragraph (1) above furnish it with any information obtained by the Commission in connection with the application.

20

(1) In paragraph 37, in sub-paragraph (1), for the words from “powers" onwards there shall be substituted the words “ relevant powers ”.

(2) After that sub-paragraph there shall be inserted the following sub-paragraph—

(1A) In sub-paragraph (1) above “the relevant powers” means those powers specified in paragraph 26(2).

21

After paragraph 40 there shall be inserted the following paragraph—

(40A) (1) In the case of an application for authorisation under section 26 of this Act made by an incorporated friendly society section 27(3) shall have effect as if the following paragraph were substituted for paragraph (a)— (") to any member of the committee of management or any director or controller of a subsidiary of the society or of a body jointly controlled by the society." (2) Where the other person mentioned in paragraph (b) of the definition of “connected person” in section 105(9) of this Act is an incorporated friendly society that paragraph shall have effect with the substitution for the words from “director" onwards of the words “member of the committee of management of the society or any director, secretary or controller of a subsidiary of the society or a body jointly controlled by the society."

22

For paragraph 45 there shall be substituted the following paragraph—

(45) (1) Any power of the Commission to make regulations, rules or orders which is exercisable by virtue of this Act shall be exercisable by statutory instrument and the Statutory Instruments Act 1946 shall apply to any such power as if the Commission were a Minister of the Crown. (2) Any regulations, rules or orders made under this Schedule by the Commission may make different provision for different cases.

SCHEDULE 19

Part I — Great Britain

Industrial Assurance Act 1923

1

The Industrial Assurance Act 1923 shall be amended as follows.

2

(1) In section 1, for subsection (1A) there shall be substituted the following subsection—

(1A) In this Act— - “collecting society” means an incorporated friendly society or registered friendly society which carries on industrial assurance business; and - “industrial assurance company” means a body corporate which carries on such business other than an incorporated friendly society.

(2) In subsection (2) of that section, in paragraph (d), for the words “the Commissioner hereinafter mentioned certifies" there shall be substituted “ the relevant authority certifies ”.

3

In section 10, for subsection (1) there shall be substituted the following subsection—

(1) The Commission may, on the application of a collecting society, grant it a certificate of exemption from all or any of the provisions of this Act, in any case where the Commission is satisfied that the society does not or will not carry on the business of effecting assurances upon human life, premiums in respect of which are received by means of collectors at a greater distance than ten miles from the registered office of the society, and where the Commission is of opinion that the society is not one to which those provisions ought to apply.

4

In section 11, in subsection (2), for the word “Commissioner" there shall be substituted “ relevant authority ”.

5

(1) In the following provisions—

(a) section 10(3),

(b) section 17(3),

(d) section 39(1), and

(e) section 43,

for the word “Commissioner", wherever occurring, there shall be substituted “ Commission ”.

(2) In the following provisions—

(a) section 17(3), and

(b) section 18(1) and (3),

for the words “he" and “him", wherever occurring, there shall be substituted “ it ”.

6

In section 17, for subsections (1) and (2) there shall be substituted the following subsections—

(1) If in the opinion of the Commission there is reasonable cause to believe that an offence against this Act or against the Insurance Companies Act 1982 has been or is likely to be committed by an industrial assurance company, the Commission or any inspector appointed by it for the purpose shall have power to examine into and report on the affairs of the company, and for that purpose may exercise in respect of the company all or any of the powers given by Part V of the Friendly Societies Act 1992 to a person appointed by the Commission to investigate a friendly society. (2) When it receives the report of a person appointed under subsection (1) above, the Commission may issue such directions and take such steps as it considers necessary or proper to deal with the situation disclosed by the report and in particular may present a petition to the court for the winding up of the company.

7

For section 23 there shall be substituted the following section—

(23) A forfeiture shall not be incurred by any member or person assured in a collecting society or industrial assurance company by reason of any default in paying any premium under a contract, the effecting of which constituted the carrying on of industrial assurance business, until after— (a) notice stating the amount due from him, and informing him that in case of default of payment by him within 28 days and at a place to be specified in the notice his interest or benefit will be forfeited, has been served upon him by or on behalf of the society or company; and (b) default has been made by him in paying any premium in accordance with that notice.

8

In section 26, for subsection (1) there shall be substituted the following subsection—

(1) A person assured with an industrial assurance company shall not, without his written consent or, in the case of a person under the age of 18, without the written consent of his parent or other guardian, be transferred from the company to another company or to a collecting society except on an amalgamation or transfer of business under section 37 below or any other enactment, and any company and any collector or other officer of any company concerned in such a transfer shall, if the provisions of this section are not complied with, be deemed to have contravened the provisions of this Act.

9

For section 32 there shall be substituted the following section—

(32) Any dispute between an industrial assurance company and— (a) any person assured; or (b) any person claiming through a person assured or under or in respect of any policy, or under the rules of the company, or under this Act, may, notwithstanding any provision of the rules to the contrary, be determined by the county court or, in Scotland, by the sheriff.

10

For section 33 there shall be substituted the following section—

(33) (1) A collector of an industrial assurance company shall not be a member of the board of directors, or hold any other office in the company except that of superintending collectors within a specified area. (2) A collector or superintendent shall not be present at any meeting of the company.

11

In section 39, in subsection (5), for the word “Commissioner" there shall be substituted “ relevant authority ”.

12

In section 45(1) after the definition of “collector" there shall be inserted the following definitions—

The expression “the Commission” means the Friendly Societies Commission; The expressions “friendly society” and “incorporated friendly society” have the same meanings as in the Friendly Societies Act 1992

The expression “the relevant authority” means— (a) in relation to a time before Schedule 19 to the Friendly Societies Act 1992 came into force, the Chief Registrar of Friendly Societies; and (b) in relation to a time after the coming into force of that Schedule, the Commission.

Industrial Assurance and Friendly Societies Act 1948

13

In section 8(2) of the Industrial Assurance and Friendly Societies Act 1948, for the word “Commissioner" there shall be substituted “ Commission. ”.

14

In section 13(1) of that Act—

(a) for the word “Commissioner" there shall be substituted “ Commission ”; and

(b) for the word “him" there shall be substituted “ it ”.

15

In section 17A(1) of that Act, for the words “Industrial Assurance Commissioner" there shall be substituted “ Commission ”.

16

In section 23(1) of that Act—

(a) at the end of paragraph (c) the word “and" shall be omitted; and

(b) after paragraph (d) there shall be added—

and (e) the expression “the Commission” means the Friendly Societies Commission.

Part II — Northern Ireland

17

The Industrial Assurance (Northern Ireland) Order 1979 shall be amended as follows.

18

(1) In Article 2, in paragraph (2), for the definitions of “collecting society", “the Friendly Societies Act" and “industrial assurance company", respectively, there shall be substituted—

“collecting society” means an incorporated friendly society or registered friendly society which carries on industrial assurance business in Northern Ireland; “the Friendly Societies Act” means the Friendly Societies Act 1974; “industrial assurance company” means a body corporate which carries on industrial assurance business in Northern Ireland other than an incorporated friendly society

(2) In that paragraph—

(a) in the definition of “exempted business", in paragraph (c), for the words “the Commissioner certifies" there shall be substituted “ it has been certified ”;

(b) after the definition of “collector" there shall be inserted—

“the Commission” means the Friendly Societies Commission; “friendly society” and “incorporated friendly society” have the same meanings as in the Friendly Societies Act 1992

; and

(c) in the definition of “Registrar", for the words “Friendly Societies Act" there shall be substituted “ Friendly Societies Act (Northern Ireland) 1970 ”.

(3) After that paragraph there shall be inserted the following paragraph—

(2A) In paragraph (2) above, in the definition of “exempted business", in paragraph (c) “certified” means— (a) in relation to a time before Schedule 19 to the Friendly Societies Act 1992 came into force, certified by the Registrar in his capacity as Industrial Assurance Commissioner; and (b) in relation to a time after the coming into force of that Schedule, certified by the Commission.

(6) In Article 2(4), for the words “Friendly Societies Act" there shall be substituted “ Friendly Societies Act (Northern Ireland) 1970. ”

19

In Article 4(2), for the word “Registrar" there shall be substituted “ Chief Registrar of Friendly Societies ”.

20

In the following provisions—

(a) Article 4(2),

(b) Article 12(3),

(d) Article 18(3),

(e) Article 23(1),

(f) Article 24,

(g) Article 35(3),

(h) Article 42(1)(b),

(i) Article 43(1)(b),

(j) paragraph 1(a) and (b) of Schedule 4,

(k) paragraphs 5(1) and (2), 6 and 7 of Schedule 5, and

(l) Schedule 7,

for the word “Commissioner", wherever occurring, there shall be substituted “ Commission ”.

21

In Article 12, for paragraph (1) there shall be substituted the following paragraph—

(1) The Commission may, on the application of a collecting society, grant it a certificate of exemption from all or any of the provisions of this Order, in any case where the Commission is satisfied that the society does not or will not carry on the business of effecting assurances upon human life, premiums in respect of which are received by means of collectors at a greater distance than ten miles from the registered office of the society, and where the Commission is of the opinion that the society is not one to which those provisions ought to apply.

22

In Article 13(1), for the word “registered" there shall be substituted “ whose registered office is ”.

23

In Article 14, after paragraph (2) there shall be inserted the following paragraph—

(3) In paragraph (2) above “shown” means— (a) in relation to a time before Schedule 19 to the Friendly Societies Act 1992 came into force, shown to the satisfaction of the Registrar in his capacity as Industrial Assurance Commissioner; and (b) in relation to a time after the coming into force of that Schedule, shown to the satisfaction of the Commission.

24

(1) Article 18 shall be amended as follows.

(2) For paragraphs (1) and (2) there shall be substituted the following paragraphs—

(1) If in the opinion of the Commission there is reasonable cause to believe that an offence against this Order or against the Insurance Companies Act 1982 has been or is likely to be committed by an industrial assurance company, the Commission or any inspector appointed by it for the purpose shall have power to examine into and report on the affairs of the company, and for that purpose may exercise in respect of the company all or any of the powers given by Part V of the Friendly Societies Act 1992 to a person appointed by the Commission to investigate a friendly society. (2) Where it receives the report of a person appointed under paragraph (1), the Commission may issue such directions and take such steps as it considers necessary or proper to deal with the situation disclosed by the report and in particular may present a petition to the court for the winding up of the company.

(3) In paragraph (3), for the words “he" and “him" there shall be substituted “ it ”.

25

For Article 29 there shall be substituted the following Article—

(29) A forfeiture shall not be incurred by any member or person assured in a collecting society or industrial assurance company by reason of any default in paying any premium under a contract the effecting of which constituted the carrying on of industrial assurance business until after— (a) notice stating the amount due from him, and informing him that in case of default of payment by him within 28 days and at a place to be specified in the notice his interest or benefit will be forfeited, has been served upon him by or on behalf of the society or company; and (b) default has been made by him in paying any premium in accordance with that notice.

26

In Article 32, for paragraph (1) there shall be substituted the following paragraph—

(1) A person assured with an industrial assurance company shall not, without his written consent or, in the case of a person under the age of 18, without the written consent of his parent or other guardian, be transferred from the company to another company or to a collecting society except on an amalgamation or transfer of business under Article 40 or any other enactment, and any company and any collector or other officer of any company concerned in such a transfer shall, if the provisions of this Article are not complied with, be deemed to have contravened the provisions of this Order.

27

For Article 36 there shall be substituted the following Article—

(36) Any dispute between an industrial assurance company and— (a) any person assured; or (b) any person claiming through a person assured or under or in respect of any policy, or under the rules of the company, or under this Order, may, notwithstanding any provision of the rules to the contrary, be determined by the county court.

28

For Article 37 there shall be substituted the following Article—

(37) (1) A collector of an industrial assurance company shall not be a member of the board of directors, or hold any other office in the company except that of superintending collectors within a specified area. (2) A collector or superintendent shall not be present at any meeting of the company.

29

(1) In Article 46, in paragraph (2) for the word “Commissioner" there shall be substituted “ relevant authority ”.

(2) After that paragraph there shall be inserted the following paragraph—

(2A) In paragraph (2) above “relevant authority” means— (a) in relation to a time before Schedule 19 to the Friendly Societies Act 1992 came into force, the Registrar; and (b) in relation to a time after the coming into force of that Schedule, the Commission.

30

In Schedule 3, in paragraph 10, in paragraph (d) of the definition of “relevant insurance" for the words “paragraph 2(d)" there shall be substituted “ paragraph (2)(d) ”.

31

In Schedule 4—

(a) in paragraph 1(a) for the words “sections 62 and 63(2) and (3)" there shall be substituted “ sections 72 and 73(2) and (3) ”; and

(b) in paragraph 1(b)—

(i) for the words from “section 61(1)" to “Schedule 7" there shall be substituted “ section 71(1) to (4) of, and paragraph 5 of Schedule 6 ”; and

(ii) for the words “section 62" there shall be substituted “ section 72 ”.

32

(1) In Schedule 5, in paragraph 5(1), for the word “he" there shall be substituted “ the Commission ”.

(2) In paragraphs 6 and 7 of that Schedule, for the words “him" and “he" there shall be substituted “ it ” and for the word “himself" there shall be substituted “ itself ”.

SCHEDULE 20

General rules as to applicable law

1

(1) Where the person (“the person insured”) who has entered into the contract of insurance with a friendly society has his habitual residence or central administrationwithin the territory of the member State where the risk is situated, the law applicable to the contract is the law of that member State.

However, where the law of that member State so allows, the parties may choose the law of another country.

(2) Where the person insured does not have his habitual residence or central administrationwithin the territory of the member State where the risk is situated, the parties to the contract may choose to apply either—

(a) the law of the member State where the risk is situated, or

(b) the law of the country in which the person insured has his habitual residence or central administration.

(3) Where the person insured carries on a business and the contract covers two or more risks relating to his business which are situated in different member States, the freedom of choice of the law applicable to the contract extends to the laws of those member States and of the country in which he has his habitual residence or central administration.

In this sub-paragraph “business” includes a trade or profession.

(4) Where the member States referred to in sub-paragraph (2) or (3) grant greater freedom of choice of the law applicable to the contract, the parties may take advantage of that freedom.

(5) Notwithstanding sub-paragraphs (1) to (3) above, when the risks covered by the contract are limited to events occurring in a member State other than the member State where the risk is situated, the parties may always choose the law of the former State.

Applicable law in the absence of choice

2

(1) The choice referred to in paragraph 1 above must be expressed or demonstrated with reasonable certainty by the terms of the contract or the circumstances of the case.

(2) If that is not so, or if no choice has been made, the contract shall be governed by the law of the country (from amongst those considered in the relevant sub-paragraphs) with which it is most closely connected.

(3) Nevertheless, a severable part of the contract which has a closer connection with another country (from amongst those considered in the relevant sub-paragraphs) may by way of exception be governed by the law of that other country.

(4) A contract is rebuttably presumed to be most closely connected with the member State where the risk is situated.

Mandatory rules

3

(1) The fact that in the cases referred to in paragraph 1 above the parties have chosen a law does not, where all the other elements relevant to the situation at the time of the choice are connected with one member State only, prejudice the application of the mandatory rules of the law of that member State, which means the rules from which the law of that member State allows no derogation by means of a contract.

(2) Nothing in this Part of this Schedule restricts the application of the rules of a part of the United Kingdom in a situation where they are mandatory, irrespective of the law otherwise applicable to the contract.

Supplementary provisions

4

(1) Where a member State includes several territorial units, each of which has its own rules concerning contractual obligations, each unit shall be considered as a country for the purposes of identifying the applicable law.

(2) The provisions of this Part of this Schedule apply to conflicts between the laws of the different parts of the United Kingdom.

5

(1) Subject to the preceding provisions of this Part of this Schedule, a court in a part of the United Kingdom shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990.

(2) In particular, reference shall be made to those provisions—

(a) to ascertain for the purposes of paragraph 1 above what freedom of choice the parties have under the law of a part of the United Kingdom; and

(b) to determine whether the mandatory rules of another member State should be applied in accordance with paragraph 3(1) above where the law otherwise applicable is the law of a part of the United Kingdom.

SCHEDULE 21

Part I — Amendments of Enactments

Loan Societies Act 1840

1

The duty of the Chief Registrar to lay before Parliament the documents mentioned in section 27 of the Loan Societies Act 1840 (accounts etc of loan societies) is abolished.

National Savings Bank Act 1971

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

National Debt Act 1972

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Solicitors Act 1974

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance Companies Act 1982

6

(1) In section 49 of the Insurance Companies Act 1982, (sanction of court for transfer of long term business) at the beginning of subsection (1) there shall be inserted “ Subject to section 49A below ”.

(2) After that section there shall be inserted the following section—

(49A) (1) Section 49 above applies, with the following adaptations, to a transfer of business to an incorporated friendly society or registered friendly society authorised under Part IV of the Friendly Societies Act 1992. (2) In subsection (3)(c) (service of documents), after the words “the Secretary of State" there shall be inserted the words “and on the Friendly Societies Commission". (3) In subsection (5) (persons entitled to be heard on petition), in paragraph (a) after the words “the Secretary of State" there shall be inserted the words “and the Friendly Societies Commission". (4) In subsection (6) (requirement that transferee company be authorised to carry on long term business), for the words “authorised under section 3 or 4 above" there shall be substituted the words “authorised under Part IV of the Friendly Societies Act 1992."

Companies Act 1985

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Company Directors Disqualification Act 1986

8

After section 22A of the Company Directors Disqualification Act 1986 (application of Act to building societies) there shall be inserted the following section—

(22B) (1) This Act applies to incorporated friendly societies as it applies to companies. (2) References in this Act to a company, or to a director or an officer of a company include, respectively, references to an incorporated friendly society within the meaning of the Friendly Societies Act 1992 or to a member of the committee of management or officer, within the meaning of that Act, of an incorporated friendly society. (3) In relation to an incorporated friendly society every reference to a shadow director shall be omitted. (4) In the application of Schedule 1 to the members of the committee of management of an incorporated friendly society, references to provisions of the Insolvency Act or the Companies Act include references to the corresponding provisions of the Friendly Societies Act 1992.

Banking Act 1987

9

In section 84(1) of the Banking Act 1987 (disclosure of information obtained under that Act), in the Table showing the authorities to which, and functions for the purposes of which, disclosure may be made, after the entry beginning “The Chief Registrar of friendly societies" there shall be inserted the following entry—

The Friendly Societies Commission.	Functions under the enactments relating to friendly societies or under the Financial Services Act 1986.

Income and Corporation Taxes Act 1988

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies Act 1989

11

In section 87 of the Companies Act 1989 (disclosure of information obtained under that Act), in subsection (4), in the Table showing the authorities to which, and functions for the purposes of which, disclosure may be made after the entry beginning “The Chief Registrar of friendly societies" there shall be inserted the following entry—

The Friendly Societies Commission.	Functions under the enactments relating to friendly societies or under the Financial Services Act 1986.

Tribunals and Inquiries Act 1992

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trade Union and Labour Relations (Consolidation) Act 1992

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

In section 171(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, after “157" there shall be inserted the words “ and regulations made by the Chief Registrar of friendly societies under paragraph 10(2) of Schedule 1 to this Act. ”

19

(1) In Schedule 1 to that Act, in paragraph 10(2)—

(a) for the words “Friendly Societies Act (Northern Ireland) 1970" there shall be substituted “ Friendly Societies Act 1974 ”; and

(b) for the words “Registrar of Friendly Societies for Northern Ireland" there shall be substituted “ Chief Registrar of Friendly Societies ”.

(2) In that Schedule, in paragraph 10 for sub-paragraph (3) there shall be substituted the following sub-paragraph—

(3) The power conferred by sub-paragraph (2) above on the Chief Registrar of Friendly Societies to make regulations shall be exercisable by statutory instrument, and— (a) the Statutory Instruments Act 1946 shall apply to that power as if the Chief Registrar were a Minister of the Crown, and (b) section 171(3) to (5) above shall apply to those regulations as they apply to regulations made by the Department.

Part II — Amendments of Northern Ireland Legislation

Parliamentary Commissioner Act (Northern Ireland) 1969

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Industrial and Provident Societies Act (Northern Ireland) 1969

21

In section 101(1) of the Industrial and Provident Societies Act (Northern Ireland) Act 1969, in the definition of “registrar", for the words “friendly societies" there shall be substituted “ credit unions ”.

22

In Article 67(1) of the commref NUM="M845">Social Security Pensions (Northern Ireland) Order 1975 for the words “Registrar of Friendly Societies for Northern Ireland" there shall be substituted “ Chief Registrar of Friendly Societies ”.

23

In Article 67(4) of that Order for the words “Friendly Societies Act (Northern Ireland) 1970" there shall be substituted “ Friendly Societies Act 1974 ”.

Statutory Rules (Northern Ireland) Order 1979

24

In Article 7(5) of the Statutory Rules (Northern Ireland) Order 1979 for the words “Friendly Societies" there shall be substituted “ Credit Unions ”.

25

In Part I of Schedule 1 to that Order, for the words “The Registrar of Friendly Societies for Northern Ireland" there shall be substituted “ The Registrar of Credit Unions for Northern Ireland ”.

Housing (Northern Ireland) Order 1981

26

In Article 114 of the Housing (Northern Ireland) Order 1981, in the definition of “registrar", for the words “of Friendly Societies for Northern Ireland" there shall be substituted “ for the purposes of the Act of 1969 ”.

Property (Discharge of Mortgage by Receipt)(Northern Ireland) Order 1983

27

In Article 3(10) of the Property (Discharge of Mortgage by Receipt)(Northern Ireland) Order 1983 for the words “section 48 of the Friendly Societies Act (Northern Ireland) 1970" there shall be substituted “ section 57A of the Friendly Societies Act 1974 ”.

Credit Unions (Northern Ireland) Order 1985

28

In Article 2(2) of the Credit Unions (Northern Ireland) Order 1985 for the definition of “registrar" there shall be substituted—

“registrar” has the meaning assigned to it by Article 2A;

29

After Article 2 there shall be inserted the following Article—

(2A) (1) The person appointed by the Head of the Department to perform in Northern Ireland the functions of registrar under this Order shall be known as the Registrar of Credit Unions for Northern Ireland (in this Order referred to as “the registrar"). (2) A person appointed by the Department to assist the registrar shall be known as the Assistant Registrar of Credit Unions for Northern Ireland (in this Order referred to as “the assistant registrar"). (3) Anything which is required or authorised to be done by or to the registrar under this Order may be done by or to the assistant registrar.

Companies (Northern Ireland) Order 1986

30

(1) In Article 442 of the Companies (Northern Ireland) Order 1986, in paragraph (1), after sub-paragraph (dd) there shall be inserted the following sub-paragraphs—

(de) for the purpose of enabling or assisting the Chief Registrar of friendly societies or the Assistant Registrar of friendly societies for Scotland to discharge their functions under the enactments relating to friendly societies; (df) for the purpose of enabling or assisting the Friendly Societies Commission to discharge its functions under the Financial Services Act 1986.

(2) In paragraph (3) of that Article, after sub-paragraph (j) there shall be inserted the following sub-paragraph—

(jj) the Friendly Societies Commission

Companies (Northern Ireland) Order 1989

31

After Article 2 of the Companies (Northern Ireland) Order 1989 there shall be inserted the following Article—

(2A) (1) This Order applies to incorporated friendly societies as it applies to companies. (2) References in this Order to a company, or to a director or an officer of a company include, respectively, references to an incorporated friendly society within the meaning of the Friendly Societies Act 1992 or to a member of the committee of management or officer, within the meaning of that Act, of an incorporated friendly society. (3) In relation to an incorporated friendly society every reference to a shadow director shall be omitted. (4) In the application of Schedule 1 to the members of the committee of management of an incorporated friendly society, references to provisions of the Insolvency Order or the Companies Order include references to the corresponding provisions of the Friendly Societies Act 1992.

SCHEDULE 22

Part I — General

Part II — Northern Ireland Legislation

Financial provision for Commission.

Grant of unconditional or conditional authorisation.

Imposition of conditions on current authorisation.

Restriction on combinations of business.

36A

Interpretation of Part IV.

Appointment of actuary by societies with long term business.

Valuation of assets and liabilities.

Triennial investigations into condition of certain societies.

Margins of solvency in relation to insurance business of certain societies.

Adequacy of assets.

Adequacy of assets and premiums

49A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The criteria of prudent management.

49B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

52A

55A

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In this Act–

“controller”, in relation to a friendly society to which section 37(2) or (3) of this Act applies, means a person who, either alone or with any associate or associates–

(a) is entitled to exercise or control the exercise of 10 per cent. or more of the voting power at any general meeting of the society; or

(b) is able to exercise a significant influence over the management of the society by virtue of an entitlement to exercise, or to control the exercise of, the voting power at any general meeting of the society;

. . ..

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57A

58A

(1) If the FCA or the PRA proposes—

(a) to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or

(b) to give a direction in relation to a society under section 90,

it must give the society a warning notice.

(2) The warning notice must set out the terms of the direction which the FCA or the PRA proposes to give and, in the case of a proposal to give a direction under section 54 or 55, any provisions which the FCA or the PRA proposes to include in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).

(3) If the FCA or the PRA decides—

(a) to give a direction to a society under section 54 or section 55, or to vary such a direction other than at the request of the society, or

(b) to give a direction in relation to a society under section 90,

it must give the society a decision notice.

(4) The decision notice must set out the terms of the direction which the FCA or the PRA has decided to give and, in the case of a decision to give a direction under section 54 or 55, any provisions to be included in the direction by virtue of section 54(4) (including that provision as applied by section 55(3)).

(5) A society to whom a decision notice is given under this section may refer the matter to the Upper Tribunal.

(6) Part XXVI of the Financial Services and Markets Act 2000 (notices) is to be treated as applying in respect of warning notices and decision notices given under this section as it applies in respect of warning notices and decision notices given under that Act, subject to subsection (8) below.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) In the application of Part XXVI of that Act in respect of warning notices and decision notices given under this section—

(a) section 388(1)(e)(i) (which requires a decision notice to indicate any right given under that Act to refer a decision to the Tribunal) is to be read as if, for the words “this Act", there were substituted “the Friendly Societies Act 1992";

(b) section 388(2) (which makes provision for the type of action to which a decision notice may relate if it was preceded by a warning notice) is to be read as if, for the word “Part", there were substituted “section";

(i) for the words “an order" there were substituted “a direction", and

(ii) for the words “the order", in both places where they appear, there were substituted “the direction"; and

(d) section 392 (application of sections 393 (third party rights) and 394 (access to FCA or PRA material)) is to be read as if—

(i) paragraph (a) of that section contained a reference to a warning notice given under subsection (1) above, and

(ii) paragraph (b) of that section contained a reference to a decision notice given under subsection (3) above.

62A

(1) A justice of the peace may issue a warrant under section 176 of the Financial Services and Markets Act 2000 if satisfied on information on oath given by or on behalf of the FCA or the PRA, an authorised officer within the meaning of section 62(3A) above, or a person appointed as an investigator under section 65(1) below or as an inspector under section 66(1) below, that there are reasonable grounds for believing that the first or second set of conditions below is satisfied.

(2) The first set of conditions is that—

(a) there are on the premises specified in the warrant information, documents or other material in relation to which a requirement has been imposed on any person under section 62(3), (3A), (4) or (5) above or section 67(3) below, or which it is the duty of any person to produce under section 65(3) or 67(2) below, and

(b) that person has failed (wholly or in part) to comply with that requirement or, having been requested to do so, has failed (wholly or in part) to comply with that duty.

(3) The second set of conditions is that—

(a) there are on the premises specified in the warrant information, documents or other material in relation to which a requirement could be imposed on any person under section 62(3), (3A), (4) or (5) above or section 67(3) below, or which any person could be requested to produce in compliance with the duty imposed on them by section 65(3) or 67(2) below, and

(b) if such a requirement were imposed, or such a request made,—

(i) it would not be complied with, or

(ii) any information, documents or other material to which it related would be removed, tampered with or destroyed.

63

(1) Subject to section 64 below, no restricted information which relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person shall be disclosed (otherwise than to an officer or employee of the primary recipient) by—

(a) the primary recipient; or

(b) any person obtaining the information directly or indirectly from him,

without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.

(2) For the purposes of this section—

“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and

“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;

but information shall not be treated as restricted information if it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this section.

(3) Any information disclosed to the Commission or the Chief Registrar by an overseas regulatory authority (within the meaning of section 64 below) shall be treated as restricted information for the purposes of this section.

(4) A person who discloses information in contravention of this section shall be guilty of an offence and liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and

(b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.

63A

(1) For the purposes of sections 348 to 353 of the Financial Services and Markets Act 2000 (restrictions on disclosure of confidential information)—

(a) information to which this section applies is to be treated as confidential information; and

(b) in relation to such information, each of the following is a primary recipient—

(i) the FCA;

(ia) the PRA;

(ii) any person who is or has been employed by the FCA or the PRA; and

(iii) any person appointed by the FCA or the PRA to carry out functions under this Act or the 1974 Act.

(2) This section applies to information which—

(a) relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person;

(b) was received by a primary recipient (within the meaning of subsection (1)(b)) for the purposes of, or in the discharge of, any functions of the FCA or the PRA under any provision made by or under this Act or the 1974 Act; and

(3) It is immaterial for the purposes of subsection (2) whether or not the information was received—

(a) by virtue of a requirement to provide it imposed by or under this Act;

(b) for other purposes as well as purposes mentioned in that subsection.

(4) Information is excluded information if—

(a) it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purposes for which, disclosure is not precluded by section 348 of the Financial Services and Markets Act 2000 (restrictions on disclosure of confidential information); or

(b) it is in the form of a summary or collection of information so framed that it is not possible to ascertain from it information relating to any particular person.

63

(1) Subject to section 64 below, no restricted information which relates to the business or other affairs of a friendly society, a registered branch of a friendly society or any other person shall be disclosed (otherwise than to an officer or employee of the primary recipient) by—

(a) the primary recipient; or

(b) any person obtaining the information directly or indirectly from him,

without the consent of the person from whom the primary recipient obtained the information and, if different, the person to whom it relates.

(2) For the purposes of this section—

“the primary recipient” means the Commission, the Chief Registrar, the central office or any officer or servant of any such person; and

“restricted information” means information which is obtained by the primary recipient for the purposes of, or in the discharge of his functions under, this Act or the 1974 Act;

(3) Any information disclosed to the Commission or the Chief Registrar by an overseas regulatory authority (within the meaning of section 64 below) shall be treated as restricted information for the purposes of this section.

(4) A person who discloses information in contravention of this section shall be guilty of an offence and liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both; and

(b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.

67A

67B

67C

67D

Duty to prepare group accounts

90A

105A

(1) A land transaction effected by or in consequence of—

(a) an amalgamation of two or more friendly societies under section 85,

(b) a transfer of the engagements of a friendly society under section 86; or

(c) a transfer of the engagements of a friendly society pursuant to a direction given by the appropriate authority under section 90,

is exempt from charge for the purposes of stamp duty land tax.

(2) Relief under this section must be claimed in a land transaction return or an amendment of such a return.

(3) In this section—

“land transaction” has the meaning given by section 43(1) of the Finance Act 2003;

“land transaction return” has the meaning given by section 76(1) of that Act.

119A

(1) In this Act “associate", in relation to any person entitled to exercise or control the exercise of voting power in relation to a friendly society to which section 37(2) or (3) above applies, means–

(a) the wife or husband or civil partner or minor son or daughter of that person;

(b) any company of which that person is a director;

(d) if that person is a company–

(i) any director of that company;

(ii) any subsidiary undertaking of that company;

(iii) any director or employee of any such subsidiary under– taking; and

(e) if that person has made an agreement or arrangement with any other person under which they undertake to act together in exercising their voting power in relation to the society, that other person.

(2) In this section–

“minor", in relation to Scotland, means not having attained the age of sixteen;

“son" includes stepson and “daughter" includes stepdaughter;

“subsidiary undertaking" has the same meaning as in the Insurance Companies Act 1982 .

119B

A. Long term business of one or more of the following classes:

1A

The establishment and management, or arranging for the establishment and management, of individual savings accounts; and in this paragraph “individual savings accounts" means plans of a kind referred to in section 333(1A) of the Income and Corporation Taxes Act 1988 .

11

The carrying on of a business which is a deposit-taking business within the meaning of the Banking Act 1987 but only to the extent that money which is received as a deposit, or money which is lent, is received from, or lent to, an individual.

12

The carrying on of insurance business which is general business within the meaning of the Insurance Companies Act 1982 but only to the extent that a contract of insurance which is effected or carried out is a contract which is effected with an individual.

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 or within regulation 3(2) of the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations (Northern Ireland) 1997 (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 .

15

Arranging for the provision of banking services by a UK institution or a European institution, and providing services in pursuance of such arrangements; and in this paragraph “UK institution" and “European institution" have the same meaning as in the Banking Co-ordination (Second Council Directive) Regulations 1992 , and “banking services" means such services as are ordinarily provided in the course of or in connection with a business which is a deposit-taking business for the purposes of the Banking Act 1987 .

3A

(1) A body is to be treated for the purposes of section 13(9) as having the right to appoint to a directorship if—

(a) a person’s appointment to the directorship follows necessarily from his appointment as an officer of that body; or

(b) the directorship is held by the body itself.

(2) A body (“B”) and some other person (“P”) together are to be treated, for the purposes of section 13(9), as having the right to appoint to a directorship if—

(a) P is a body corporate which has directors and a person’s appointment to the directorship follows necessarily from his appointment both as an officer of B and a director of P;

(b) P is a body corporate which does not have directors and a person’s appointment to the directorship follows necessarily from his appointment both as an officer of B and as a member of P’s managing body; or

(3) For the purposes of section 13(9), a right to appoint (or remove) which is exercisable only with the consent or agreement of another person must be left out of account unless no other person has a right to appoint (or remove) in relation to that directorship.

(4) Nothing in this paragraph is to be read as restricting the effect of section 13(9).

SCHEDULE 13A TO 1992 ACT

SCHEDULE 13B TO 1992 ACT

PART III — FRIENDLY SOCIETIES PROVIDING INSURANCE IN THE UNITED KINGDOM THROUGH OVERSEAS BRANCHES IN OTHER EEA STATES

PART IV — SUPPLEMENTAL

SCHEDULE 13C TO 1992 ACT

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15A

(1) This paragraph applies to any transfer of engagements (other than contracts of reinsurance) where–

(a) the effecting of the engagements constituted the carrying on of long term business;

(b) the transferor is a friendly society to which section 37(3) above applies; and

(i) a friendly society to which section 37(2) or (3) above applies;

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(v) an insurance company whose margin of solvency is supervised in accordance with rule 3.1 to 3.3 and rule 6.4 and 6.5 of the Third Country Branches Part of the Rulebook made by the Prudential Regulation Authority under the Financial Services and Markets Act 2000.

(1A) For the purposes of sub-paragraph (1)(c)(v), references to rules made by the Prudential Regulation Authority are to those rules as they have effect on IP completion day.

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