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Part XU.K. General and Supplementary

InterpretationU.K.

116 Friendly societies etc.U.K.

In this Act—

Textual Amendments

Commencement Information

I1Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

117 Insurance business etc.U.K.

(1)For the purposes of this Act—

(2)For the purposes of any provision of Parts IV, V, VI and VIII of this Act, unless the context otherwise requires—

(a)references to insurance business include references to reinsurance business; and

(b)reinsurance business consisting of the effecting and carrying out of a contract of reinsurance of risks of any class shall be taken to constitute the carrying on of insurance business of that class;

and “reinsurance business” means the effecting and carrying out of contracts of reinsurance.

(3)For the purposes of this Act the effecting and carrying out of a contract whose principal object is within one class of insurance business, but which contains related and subsidiary provisions within another class or classes, shall be taken to constitute the carrying on of insurance business of the first-mentioned class, and no other, if subsection (4) or (5) below applies to the contract.

(4)This subsection applies to a contract whose principal object is within any class of long term business, but which contains subsidiary provisions within general business class 1 or 2, if the society concerned is authorised under section 32 above to carry on long term business class I.

(5)This subsection applies to a contract whose principal object is within one of the classes of general business but which contains subsidiary provisions within another of those classes.

[F5(6)In relation to a contract of insurance entered into by a person on any date with a friendly society to which section 37(3) above applies the effecting of which constitutes general business, or a contract of insurance entered into by a person on any date with a friendly society to which section 37(2) above applies the effecting of which constitutes long term business, references in this Act to the [F6member or EEA State] where the risk or commitment is situated shall be construed as follows—

(a)where that person is an individual, as references to the [F6member or EEA State] where he has his habitual place of residence on that date; and

(b)in any other case, as references to the [F6member or EEA State] where the establishment of that person to which the contract relates is situated on that date.

(7)In relation to any other contract of insurance with a friendly society, references in this Act to the member State where the risk is situated shall be construed as references to the member State where the person who has entered into the contract has his habitual place of residence.]

F7(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(9)In this Act “establishment", in relation to a friendly society to which section 37(2) or (3) above applies, means the registered office or an overseas branch of the society.

Any permanent presence of such a society in an EEA State other than the United Kingdom shall be regarded for those purposes as a single overseas branch, whether that presence consists of a single office which, or two or more offices each of which–

(a)is managed by the society’s own staff;

(b)is an agency of the society; or

(c)is managed by a person who is independent but has permanent authority to act for the society in the same way as an agency.]

Textual Amendments

F2Definition in s. 117(1) inserted (1.1.1994) by S.I. 1993/2519, reg. 7(1)

F3Words in definition in s. 117(1) inserted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 114 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F4Definition in s. 117(1) added (1.9.1994) by S.I. 1994/1984, reg. 29(1)

F5S. 117(6)(7) substituted for s. 117(6) (1.1.1994) by S.I. 1993/2519, reg. 7(2)

F6Words in s. 117(6) substituted (1.9.1994) by S.I. 1994/1984, reg. 29(2)

F7S. 117(8) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 205(1)

F8S. 117(9) inserted (1.9.1994) by S.I. 1994/1984, reg. 29(3)

Commencement Information

I2Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

118 Financial year of friendly societies.U.K.

(1)Subject to subsection (2) below, in this Act “financial year” means the period of 12 months ending with 31st December.

(2)The initial financial year of a friendly society shall be such period as expires with the end of the calendar year in which it is registered under the 1974 Act or incorporated under this Act and the final financial year of the society shall be such shorter period than 12 months as expires with the date as at which the society makes up its final accounts.

Commencement Information

I3Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

119 General interpretation.U.K.

(1)In this Act, unless the context otherwise requires—

[F33(1AA)Any reference in this Act to the seal of the [F34FCA] is a reference to the seal provided for in regulations made under section 109(1)(b) of the Friendly Societies Act 1974 (and not to the [F35FCA’s] common seal).]

[F36(1A)References in this Act to the first or third general insurance DirectiveF37... are references to that Directive as amended by the [F38European Parliament and Council Directive of 29th June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, [F39Directives [F4073/239/EEC] and 92/49/EEC in the field of non-life insurance], Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (UCITS) with a view to reinforcing prudential supervision (No. 95/26/EC)] [F41and as amended by the reinsurance Directive].]

F42(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F43(1C)In the definition of “supervisory authority” in subsection (1), the reference to contracts of insurance and to effecting or carrying out such contracts must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

[F44(1D)References in this Act to the life assurance consolidation Directive are references to that Directive as amended by the reinsurance Directive.]

(2)References in this Act to the “ECU” are to the unit of account of that name defined in Council Regulation (EEC) No.3180/78 as amended; and the exchange rates as between the ECU and pounds sterling to be applied for each year beginning on 31st December shall be the rates applicable on the last day of the preceding October for which exchange rates for the currencies of all the member States were published in the Official Journal of the Communities.

[F45(3)In this section, “the reinsurance Directive” means Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC.]

Textual Amendments

F9Words in the definition of “actuary” in s. 119(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F11Words in the definition of “appointed actuary” in s. 119(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F12S. 119(1): Words in para. (a) of the definition of “appropriate actuary” substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iv)(A) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F13S. 119(1): Words in para. (b) of the definition of “appropriate actuary” substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8(1), 13(1), Sch. 3 para. 115(a)(iv)(B) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F15Definitions of “the central office”, “the Chief Registrar”, “collecting society”, “the Commission”, “the criteria of prudent management” and “notifiable voting rights” in s. 119(1) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)

F17S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984 reg. 30(a)

F20S. 119(1): definition inserted (1.9.1994) by S.I. 1994/1984, reg. 30(b)

F23S. 119(1): definition substituted (1.9.1994) by S.I. 1994/1984 reg. 30(c)

F24S. 119(1): definitions of “the life Directives” and “manager” substituted for definition of “the life Directives” (1.9.1994) by S.I. 1994/1984, reg. 30(d)

F27Words in s. 119(1) inserted (1.9.1994) by S.I. 1994/1984, reg. 30(f)

F28Words in the definition of “supervisory authority” in s. 119(1) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 205(3)

F29O.J. L228, 11.8.92, page 1.

F30O.J. L228, 16.8.73, page 3.

F31O.J. L172, 4.7.88, page 1.

F32Words in s. 119(1) omitted (17.8.2001 for specified purposes and 1.12.2001 for all other purposes) by virtue of The Financial Services and Markets Act 2000 (Mutual Societies) Order 2001 (S.I. 2001/2617), arts. 2, Sch. 3 para. 115(a)(vii), Sch. 4 (with art. 13(3), Sch. 5)

Commencement Information

I4Ss. 116-119 wholly in force at 8.6.1992 see s. 126(2) and S.I. 1992/1325, art. 2(c).

Marginal Citations

[F46119A Meaning of “associate".U.K.

(1)In this Act “associate", in relation to any person entitled to exercise or control the exercise of voting power in relation to a friendly society to which section 37(2) or (3) above applies, means–

(a)the wife or husband [F47or civil partner] or minor son or daughter of that person;

(b)any company of which that person is a director;

(c)any person who is an employee or partner of that person;

(d)if that person is a company–

(i)any director of that company;

(ii)any subsidiary undertaking of that company;

(iii)any director or employee of any such subsidiary under– taking; and

(e)if that person has made an agreement or arrangement with any other person under which they undertake to act together in exercising their voting power in relation to the society, that other person.

(2)In this section–

“minor", in relation to Scotland, means not having attained the age of sixteen;

“son" includes stepson and “daughter" includes stepdaughter;

“subsidiary undertaking" has the same meaning as in the Insurance Companies Act 1982 M2.]

Textual Amendments

F46S. 119(A) inserted (1.9.1994) by S.I. 1994/1984 reg. 31

Marginal Citations

[F48119AA.Meaning of electronic form, electronic means etc.U.K.

(1)The following provisions apply for the purposes of this Act.

(2)A document or information is sent in electronic form if it is sent—

(a)by electronic means (for example, by email or fax), or

(b)by any other means while in electronic form (for example, sending a disk in the post).

References to “electronic copy” have a corresponding meaning.

(3)A document or information is sent by electronic means if it is—

(a)sent initially and received at its destination by means of electronic equipment for the processing (which expression includes digital compression) or storage of data, and

(b)entirely transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means.

References to “electronic means” have a corresponding meaning.

(4)A document or information sent in electronic form must be sent in a form, and by a means, that the sender reasonably considers will enable the recipient—

(a)to read it, and

(b)to retain a copy of it.

(5)For the purposes of this section, a document or information can be read only if—

(a)it can be read with the naked eye, or

(b)to the extent that it consists of images (for example photographs, pictures, maps, plans or drawings), it can be seen with the naked eye.

(6)The provisions of this section apply whether the provision of this Act in question uses the word “send” or uses other words (such as “furnish”, “circulate”, “provide”, “produce”, “supply”, “give” or “deliver”) to refer to the sending of a document or information.

Textual Amendments

119AB.Communications by means of a websiteU.K.

(1)For the purposes of this Act, a person (A), other than the [F49FCA and the PRA], makes a document or information available on a website to another person (B) if each of the following conditions is satisfied.

(2)The first condition is that B—

(a)has agreed (generally or specifically) that A may make the document or information available to B in that manner, and

(b)has not revoked that agreement.

(3)The second condition is that A has notified B of—

(a)the presence of the document or information on the website,

(b)the address of the website,

(c)the place on the website where the document or information may be accessed, and

(d)how to access the document or information.

(4)The third condition is that the document or information is present on the website for the whole of the period—

(a)beginning when A sends B the notification referred to in subsection (3) or, if later, when the document or information first appears on the website, and

(b)ending with the end date specified for the purposes of this paragraph in the provision of, or made under, this Act that requires or permits A to send the document to B.

(5)If the document or information is absent from the website for part of the period referred to in subsection (4), the absence is to be disregarded if it is wholly attributable to circumstances that it would not be reasonable to have expected A to prevent or avoid.

(6)A is not to be regarded as making a document available on a website for the purposes of this section if the website is the [F50the FCA’s or the PRA’s] website (an electronic copy of the document having been placed there in reliance on section 104(1A)(b)).]

Textual Amendments

F51119B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments