The Friendly Societies (Amendment) Regulations 1993

Combinations of long term and general business

3.—(1) In subsection (1) of section 37 of the 1992 Act (restrictions on combinations of business), for the words “Subject to subsection (8) below” there shall be substituted the words “Subject to subsections (1A) and (7A) below”.

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

“(1A) Nothing in subsection (1) above shall prevent an authorised friendly society to which subsection (2) or (3) below applies from carrying on, or being authorised to carry on, both long term business and general business of either or both of classes 1 and 2 of Head B of Schedule 2 to this Act.”

(3) For subsection (8) of that section there shall be substituted the following subsections—

“(7A) Where a friendly society to which subsection (2) or (3) above applies was on 15th March 1979 carrying on long term and general business in the United Kingdom, the society may (if authorised to do so) carry on any class (or part of a class) of long term or general business.

(8) Where a friendly society to which subsection (2) or (3) above applies is authorised by virtue of subsection (1A) or (7A) above to carry on long term and general business in the United Kingdom—

(a) the Commission shall (whether or not other conditions are imposed) impose such conditions on the society’s authorisation as the Commission thinks fit for securing that the society’s long term business and general business are kept separate; and

(b) those conditions shall, subject to the exceptions mentioned in subsection (9) below, require that the assets representing the funds maintained in respect of the society’s long term business or, as the case may be, its general business are to be generally applicable for the purposes of that business only.”