The Friendly Societies (Amendment) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Friendly Societies Act 1992 (“the 1992 Act”) and the Friendly Societies (Insurance Business) Regulations 1994.

They implement the Agreement on the European Economic Area (Cm 2073) (“EEA Agreement”) as regards the application of Council Directive 92/49 EEC (O.J. No. L228, 11.8.92, p.1) and Council Directive 92/96 EEC (O.J. No. L360, 9.12.92, p.1) (the “Third Non-Life and Life Insurance Directives” respectively) to those contracting parties to the EEA Agreement who are not Member States, namely Norway, Iceland and Liechtenstein. In accordance with a Decision of the Joint Committee of the European Economic Area (O.J. No. L160, 28.6.94, p.1) these Directives apply to Norway and Iceland with effect from 1st July 1994. In accordance with a decision of the Council of the European Economic Area (O.J. No. L86, 20.4.95, p.58), these Directives, together with the earlier Council Directives on the co-ordination of laws, regulations and administrative provisions relating to insurance, apply to Liechtenstein with effect from 1st May 1995.

One of the principal purposes of the Third Life and Non-Life Insurance Directives was to introduce for direct insurance business the principle of the home State control. They were given effect in relation to friendly societies by the Friendly Societies (Amendment) Regulations 1994 (S.I. 1994/1984), the Friendly Societies (Insurance Business) Regulations 1994 (S.I. 1994/1981) and the Friendly Societies (Authorisation) Regulations 1994 (S.I. 1994/1982).

The Regulations substitute the expression “EEA State” for “member State” in the provisions of the 1992 Act referred to in regulation 3 and the expression “EEA States” for “European Community” in the provisions referred to in regulation 4.

Regulation 6 substitutes the expression “EEA State” for “member State” in regulations 56 and 58 of the Friendly Societies (Insurance Business) Regulations 1994, revokes regulation 55, which is redundant by reason of that substitution, and deletes the reference to EEA State in regulation 58(2), which likewise is redundant.

Compliance Costs

These Regulations will not impose any new burdens on business, accordingly, no Compliance Cost Assessment has been prepared.