The Friendly Societies (Accounts and Related Provisions) (Amendment) Regulations 2008

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (S.I. 1994/1983) (“the principal Regulations”) to implement in part Directive 2006/46/EC of the European Parliament and of the Council on the annual and consolidated accounts of certain types of companies, banks and other financial institutions (O.J. L 224, 16/8/2006, p.1) (“the Directive”).

Regulations 3, 4 and 6 remove certain provisions of the principal Regulations which relate to disclosures in the notes to societies’ accounts. These disclosures are now required by sections 69J and 69K of, and Schedules 13D and 13E to, the Friendly Societies Act 1992 (c. 40), which were inserted by S.I. 2005/2211.

Regulation 5 amends Schedule 4 to the principal Regulations, to require societies preparing Friendly Societies Act accounts (see sections 69A(2) and 69E(3) of the Friendly Societies Act 1992, inserted by S.I. 2005/2211) to give certain information about transactions with related parties in the notes to those accounts.

Regulation 7 amends Schedule 6 to the principal Regulations, to enable societies preparing Friendly Societies Act accounts to value a wider range of financial liabilities at fair value in accordance with international accounting standards.

The amendments in the Schedule are consequential on the changes made by regulations 3, 4 and 6.

A transposition note showing how the main provisions of the Directive (as it applies to friendly societies) will be transposed into UK law is available from HM Treasury. Copies may be obtained from the Savings and Investment Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and the note will be available on the Treasury website (www.hm-treasury.gov.uk).

A full regulatory impact assessment of the effect that this instrument will have on the costs of business is also available from HM Treasury at the above address, and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).