Financial Services Act 1986 (Restriction of Right of Action) (Friendly Societies) Regulations (Northern Ireland) 1991

Explanatory Note

(This note is not part of the Regulations.)

Paragraph 22A of Schedule 11 to the Financial Services Act 1986 (“the Act”) was inserted into the Act by section 193(3) of the Companies Act 1989 in order to restrict, in general, to a private investor the right of a person who could bring an action in relation to an investment in a friendly society under paragraph 22 of Schedule 11 to the Act

Paragraph 22A of Schedule 11 to the Act gives the Registrar of Friendly Societies for Northern Ireland, in relation to any society such as is mentioned in section 23(2) of the Act or to any self-regulating organisation for friendly societies which has applied for or been granted a recognition order made by him, power—

(a) to define the expression “private investor” for this purpose; and

(b) to specify the circumstances in which a person other than a private investor can bring an action under paragraph 22 of Schedule 11 to the Act in relation to an investment in any such society

Regulation 2 defines a private investor as an investor who is neither an “authorised person” under Chapter III, nor an “exempted person” under Chapter IV of Part I of the Act. Regulation 3 specifies four circumstances in which a person who is not a private investor can bring an action

Section 193(3) of the Companies Act 1989 was brought into operation on 1st April 1991 by the Companies Act 1989 (Commencement No. 9 and Saving and Transitional Provisions) Order 1991 (S.I. 1991/488 (C. 11)).