2018 No. 1039
The Friendly Societies (Amendment) (EU Exit) Regulations 2018
Sift requirements satisfied
Made
Laid before Parliament
Coming into force in accordance with regulation 1
The requirements of paragraph 3(2) of Schedule 7 to the European Union (Withdrawal) Act 20181 (relating to the appropriate Parliamentary procedure for these Regulations) have been satisfied.
The Treasury make these Regulations in exercise of the powers conferred by section 8(1) of that Act.
Citation and commencement1
These Regulations may be cited as the Friendly Societies (Amendment) (EU Exit) Regulations 2018 and come into force on exit day.
PART 1Amendment of primary legislation
Amendment of the Friendly Societies Act 19922
The Friendly Societies Act 19922 is amended as set out in this Part.
Amendment of section 52 (applications to court)3
In section 52 (applications to court), in subsection (2)(c)3, omit the words “other than the United Kingdom”.
Amendment of section 72 (auditors’ appointment, tenure, qualifications, etc)4
In section 72 (auditors’ appointment, tenure, qualifications, etc), in subsection (3)4, for the words “to which the Audit Directive applies” substitute “subject to special requirements”.
Amendment of section 74 (signature of auditor’s report)5
In section 74 (signature of auditor’s report)5, in subsection (3)(a), for the words “to which the Audit Directive applies” substitute “subject to special requirements”.
Amendment of section 74A (senior statutory auditor)6
In section 74A (senior statutory auditor)6, in subsection (2)(a), for the words “to which the Audit Directive applies” substitute “subject to special requirements”.
Amendment of section 78A (interpretation of Part 6)7
In section 78A (interpretation of Part 6)7—
a
in subsection (1)8, omit the definition of “the Audit Directive”;
b
in subsection (3)9—
i
in the words before paragraph (a), for the words “to which the Audit Directive applies” substitute “subject to special requirements” and omit “is” at the end;
ii
in paragraph (a), insert “would be” before “an insurance undertaking” and after “insurance undertakings” insert “were the United Kingdom a member State”; and
iii
in paragraph (b), insert “is” before “an issuer”.
Amendment of section 86 (transfer of engagements by or to friendly society)8
In section 86 (transfer of engagements by or to friendly society), in subsection (12)10—
a
at the end of paragraph (a), omit the word “or”;
b
omit paragraph (b).
Amendment of section 87 (actuary’s report as to margin of solvency)9
In section 87 (actuary’s report as to margin of solvency), in subsection (2), for paragraph (a)11 substitute—
a
the fulfilment of any of the engagements to be transferred will constitute the carrying on of insurance business in the United Kingdom, and
Amendment of section 88 (actuary’s report on transfer of long term business)10
In section 88 (actuary’s report on transfer of long term business), in subsection (1), for paragraph (a)12 substitute—
a
a friendly society (“a transferor society”) proposes to transfer to any person engagements the fulfilment of which will constitute the carrying on of long term business in the United Kingdom; or
Amendment of section 117 (insurance business etc)11
Amendment of section 119 (general interpretation)12
In section 119 (general interpretation)—
a
in subsection (1)—
i
in the definition of “manager”16, in paragraph (b), for “a member State” substitute “the United Kingdom”;
ii
omit the definition of “supervisory authority”17;
b
omit subsection (1C)18.
Amendment of Schedule 14 (auditors: appointment, tenure, qualifications and remuneration)13
In Schedule 14 (auditors: appointment, tenure, qualifications and remuneration)—
a
in the italic heading before paragraph 3A19, for the words “to which the Audit Directive applies” substitute “in relation to friendly societies subject to special requirements”;
b
in paragraph 3A(1) (appointment as auditor), for the words “to which the Audit Directive applies” substitute “subject to special requirements”;
c
in paragraph 10A(1)20 (removal of auditor on improper grounds), for the words “to which the Audit Directive applies” substitute “subject to special requirements”.
Amendment of Schedule 14A (appointment and removal of auditors: societies to which audit directive applies)14
In Schedule 14A21 (appointment and removal of auditors: societies to which audit directive applies)—
a
in the heading, for the words “to which Audit Directive applies” substitute “subject to special requirements”;
b
in paragraph 1(1) (introductory), for the words “to which the Audit Directive applies” substitute “subject to special requirements”;
c
in paragraph 7 (interpretation)—
i
the existing text becomes sub-paragraph (1);
ii
in that sub-paragraph, for the definition of “audit committee”, substitute—
“audit committee” means a body which performs—
- a
the functions referred to in—
- b
equivalent functions;
iii
after that sub-paragraph, insert—
2
For the purposes of the definition of “audit committee”, references to rules made by the Prudential Regulation Authority or the Financial Conduct Authority are to those rules as they have effect on exit day.
Amendment of Schedule 15 (amalgamations, transfers of engagements and conversion: supplementary)15
1
Schedule 15 (amalgamations, transfers of engagements and conversion: supplementary) is amended as follows.
2
In paragraph 6—
a
omit sub-paragraph (1A)25;
b
in sub-paragraph (3)(b)26, omit the word “and” at the end of sub-paragraph (i) and sub-paragraph (ii).
3
In paragraph 1127, omit the word “or” at the end of paragraph (a) and paragraph (b).
4
In paragraph 1528—
b
in sub-paragraph (1)(c)(vi)31, for the words from “required to” to the end substitute “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.”;
c
after sub-paragraph (1) insert—
1A
For the purposes of sub-paragraph (1)(c)(vi), references to rules made by the Prudential Regulation Authority are to those rules as they have effect on exit day.
d
in sub-paragraph (2)—
i
at the end of paragraph (b)32 insert “and”;
ii
at the end of paragraph (c) omit the word “and”;
iii
omit paragraph (d)33;
e
omit sub-paragraph (3)34;
f
omit sub-paragraph (6)(a)35.
5
In paragraph 15A36—
b
in sub-paragraph (1)(c)(v)39, for the words from “required to” to the end substitute “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 200040.”;
c
after sub-paragraph (1) insert—
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 exit day.
d
in sub-paragraph (2)41, omit the word “and” at the end of paragraph (b) and paragraph (c);
e
omit sub-paragraph (3)42;
f
omit sub-paragraph (6)(a)43.
6
7
Omit paragraph 18(1)46 (interpretation).
PART 2Amendment of subordinate legislation
Amendment of the Friendly Societies (Accounts and Related Provisions) Regulations 199416
In the Friendly Societies (Accounts and Related Provisions) Regulations 199447, in Schedule 4 (notes to annual accounts)48, for paragraph 28(1) substitute—
1
Subject to sub-paragraph (2) below, there must be disclosed as regards both general and long term business the total gross direct insurance premiums resulting from contracts concluded by the society in the United Kingdom and other countries.
(This note is not part of the Regulations)