The Friendly Societies (Amendment) Regulations 1993

Securing compliance with Community obligations

2.—(1) After section 36 of the 1992 Act there shall be inserted the following section—

“Directions for deeming conditions to have been imposed.

36A.— (1) Subsection (2) below applies where—

(a) it appears to the Commission that there has been or is, on the part of an authorised friendly society to which section 37(2) or (3) below applies or its committee of management, a failure to satisfy the 8th criterion in section 50(3) below; and

(b) the Commission proposes, on that ground, to impose conditions under section 36 above on the society’s authorisation.

(2) If the Commission considers it expedient to do so in order to protect the interests of members of the society, the Commission may direct that, for the period—

(a) beginning with service of notice of the proposal underparagraph 7(1) or 8(2) of Schedule 13 to this Act, and

(b) ending with service of the Commission’s decision notice,

the proposed conditions shall be deemed to have been imposed under section 36 above on the society’s authorisation.

(3) In subsection (2) above “the Commission’s decision notice” means—

(a) in relation to a notice of the proposal under paragraph 7(1) of Schedule 13 to this Act, notice of the Commission’s decision under paragraph 7(5) of that Schedule or notice of an alternative proposal under paragraph 8(2) of that Schedule;

(b) in relation to a notice of the proposal under paragraph 8(2) of that Schedule, notice of the Commission’s decision under paragraph 8(6) of that Schedule or notice of an alternative proposal under the said paragraph 8(2).

(4) The Commission may revoke a direction under this section if it is satisfied that the direction is no longer needed for the purpose for which it was imposed.

(5) The provisions of this Act (so far as applicable)—

(a) apply in relation to a decision of the Commission to give a direction under this section as they apply in relation to a decision of the Commission to impose conditions under section 36 above, and

(b) apply to conditions which, by virtue of such a direction, are deemed to have been imposed under that section as they apply to conditions so imposed.”

(2) After the 7th criterion in subsection (3) of section 50 of that Act (the criteria of prudent management) there shall be inserted the following criterion—

In the case of a society to which section 37(2) or (3) above applies, direction and management which, in addition to satisfying the other requirements as to direction and management, is such as to secure compliance with any obligation imposed on the society by any provision (whether of the law of any part of the United Kingdom or of the law of another member State) giving effect to any of the general insurance or life Directives.”

(3) In subsection (5) of that section, for the words “the other 6 criteria” there shall be substituted the words “the other 7 criteria”.