The Friendly Societies Act 1992 (Amendment) Regulations 1994

PART VI TRANSFERS OF ENGAGEMENTS

Confirmation by Commission

25.—(1) In Schedule 15 to the 1992 Act (amalgamations, transfers of engagements and conversions: supplementary), Part II (confirmation by Commission) shall, subject to sub–paragraph (2) below, have effect subject to the amendments specified in Schedule 4 to these Regulations.

(2) Where, in the case of any transfer of engagements by a friendly society to which section 37(2) or (3) of the 1992 Act applies, the contents of the statement required by paragraph 1 of Schedule 15 to that Act has been approved by the Commission under paragraph 2(2) of that Schedule before the commencement date, the amendments made by Schedule 4 to these Regulations shall not have effect in relation to that transfer.

(3) Regulation 5 of the Friendly Societies (Amendment) Regulations 1993 (which is superseded by this regulation) shall cease to have effect.

Actuary’s report as to margin of solvency

26.—(1) In subsection (2) of section 87 of the 1992 Act (actuary’s report as to margin of solvency), for paragraph (a) substitute–

“(a) the fulfilment of any of the engagements to be transferred will constitute–

(i) in the case of a transferor to which subsection (2) or (3) of section 37 above applies, the carrying on of insurance business in one or more member States, or

(ii) in the case of a transferor to which neither of those subsections applies, the carrying on of insurance business in the United Kingdom, and”.

(2) A person who–

(a) is guilty of an offence under subsection (6) of that section; but

(b) would not have been subject to the provisions of that subsection if this regulation had not been made,

shall not be liable on summary conviction to imprisonment for a term exceeding three months.

Actuary’s report on transfer of long term business

27.  In subsection (1) of section 88 of the 1992 Act (actuary’s report on transfer of long term business), for paragraph (a) substitute–

“(a) a friendly society (“a transferor society”) proposes to transfer to any person engagements the fulfilment of which will constitute–

(i) in the case of a society to which subsection (2) or (3) of section 37 above applies, the carrying on of long term business in one of more member States; or

(ii) in the case of a society to which neither of those subsections applies, the carrying on of long term business in the United Kingdom; or”.

Issue of certificates by Commission

28.  After section 90 of the 1992 Act insert—

“Issue of certificates by Commission.

90A.— (1) Where it is proposed to execute an instrument by which–

(a) an EC company, or a non–EC company whose head office is in an EFTA State, is to transfer to a friendly society to which section 37(2) or (3) above applies all its rights and obligations under such long term or general policies, or long term or general policies of such descriptions, as may be specified in the instrument; or

(b) a Swiss general insurance company is to transfer to such a friendly society all its rights and obligations under such general policies, or general policies of such descriptions, as may be so specified,

the Commission may, if it is satisfied that the transferee possesses (after taking the proposed transfer into account) the margin of solvency required by section 48 above, issue a certificate to that effect.

(2) In this section–

“EC company”, “non–EC company” and “Swiss general insurance company” have the same meanings as in the Insurance Companies Act 1982;

“general policy” means a policy evidencing a contract (other than a contract of reinsurance) the effecting of which by the transferor constituted the carrying on of general business of any class;

“long term policy” means a policy evidencing a contract (other than a contract of reinsurance) the effecting of which by the transferor constituted the carrying on of long term business of any class.”.