(1)Subject to the following provisions of this section, a friendly society which—
(a)is not a society to which section 46 above applies and carries on insurance business; or
(b)is a society to which that section applies and carries on general business;
shall, at least once in every period of 3 years, cause an investigation to be made by the appropriate actuary into the financial condition of the society in respect of its insurance business.
(2)Where an investigation under this section is carried out, the society shall cause an abstract of the actuary’s report to be made and sent to the Commission within 6 months of the date to which the accounts of the society were made up for the purposes of that investigation or such further period (not exceeding 6 months) as the Commission may by notice to the society direct.
(3)The first investigation into a society’s financial condition under this section shall be—
(a)in the case of a registered friendly society, or an incorporated friendly society which was formerly a registered friendly society, an investigation into its condition at a date not later than 3 years after—
(i)the commencement of this section; or
(ii)the date as at which its assets and liabilities were last valued under section 41 of the 1974 Act,
whichever is earlier; or
(b)in the case of any other incorporated friendly society, an investigation into its condition at a date not later than 3 years after the date on which it is registered.
(4)Subject to subsection (5) below, a friendly society shall send to the Commission, not later than 6 months after each anniversary of the date to which the accounts of the society were made up for the purposes of the last investigation into its financial condition under this section—
(a)a certificate given by the appropriate actuary that there has been no material change in its financial condition in respect of its insurance business since it sent the last abstract under subsection (2) above; or
(b)a statement by the appropriate actuary that he is unable to give such a certificate.
(5)A society is not under the duty imposed by subsection (4) above if, before a date by which a certificate or statement must be sent, a further investigation under this section has been carried out and the requisite abstract has been sent to the Commission.
(6)If a society sends the Commission a statement under subsection (4)(b) above, it shall be the society’s duty to cause an investigation to be carried out under this section; and in such a case—
(a)the date to which the society’s accounts are made up for the purposes of the investigation shall be the latest anniversary of the date to which its accounts were made up for the purposes of the last investigation under this section; and
(b)the abstract required by subsection (2) above shall be sent to the Commission within 6 months of the date by which that statement was required to be sent under subsection (4) above.
(7)An investigation under this section into the financial condition of a society which falls within subsection (1)(a) above shall include—
(a)a valuation of the liabilities of the society attributable to its insurance business; and
(c)a determination of any excess over the liabilities so attributable of the assets representing the fund or funds maintained by the society in respect of its insurance business and, where any rights of any long term policy holders to participate in profits relate to particular parts of such a fund, a determination of any excess of assets over liabilities in respect of each of those parts.
(8)An investigation under this section into the financial condition of a society falling within subsection (1)(b) above shall include—
(a)a valuation of the liabilities of the society attributable to its general business; and
(b)a determination of any excess over the liabilities so attributable of the assets representing the fund or funds maintained by the society in respect of that business.
(9)The form and contents of any abstract under this section shall be such as the Commission may direct; and such a direction may be given to societies of a specified description or to a specified society.
(10)The Commission may dispense with the requirements of subsections (1) to (6) above in respect of societies to whose purposes, or the nature or scale of whose insurance business, it may deem those provisions inapplicable.
(11)The Commission may dispense with the requirements of subsections (1) to (6) above in respect of any particular insurance business of a society if, in the Commission’s opinion, those provisions are inapplicable to that business because of its nature or scale or the manner in which it is carried on.
(12)In relation to any society on which a partial exemption is conferred under subsection (11) above, subsections (1) to (8) above shall have effect as if—
(a)references to the financial condition of the society excluded its condition in relation to the business to which the partial exemption relates; and
(b)subsections (7) and (8) referred only to the assets and liabilities other than those attributable to that business.
(13)The Commission may direct that this section shall have effect, in relation to societies of a specified description or to a specified society, as if for any reference to 3 years there were substituted a reference to 5 years.
(14)A direction under subsection (12) or (13) above may make such transitional provision as the Commission considers appropriate.