Friendly Societies Act 1992

Confirmation of transfers of engagementsU.K.

12U.K.The [F1appropriate authority] shall not confirm a transfer unless it is satisfied—

(a)that all the engagements included in the transfer may be transferred under section 86 above to the transferee;

(b)that the transfer is in the interests of the members of each friendly society participating in the transfer; and

(c)where the transfer is not of all the engagements of the transferor, that the purposes of each friendly society participating in the transfer will, after the transfer, continue to include the carrying on of one or more activities falling within Schedule 2 to this Act.

[F213U.K. 

(1)The [F3appropriate authority] shall not confirm a transfer in any case where the transferee is required by section 87 above to furnish the [F3appropriate authority] with a report unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the [F4appropriate authority under Part 9A] of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities.

(2)The [F3appropriate authority] shall not confirm a transfer of any engagements the fulfilment of which will constitute effecting or carrying out contracts of insurance in the United Kingdom unless it is satisfied (after taking the proposed transfer into account) either that the transferee will possess the margin of solvency required by rules made by the [F4appropriate authority under Part 9A] of the Financial Services and Markets Act 2000 or, where no margin of solvency is required by such rules, that the value of the transferee’s assets will exceed its liabilities.

(3)This paragraph does not apply to any transfer of engagements to which paragraph 15 or 15A below applies.

(4)The reference in sub-paragraph (2) to effecting or carrying out contracts of insurance 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.]

[F514U.K.The Commission shall not confirm a transfer of any engagements the fulfilment of which will constitute the carrying on in the United Kingdom of insurance business unless it is satisfied—

(a)that the proposed transferee will be able to fulfil the engagements without authorisation under Part I of the Insurance Companies Act 1982 or section 32 of this Act; or

(b)that there is no substantial risk that the proposed transferee will not have such authorisation as will permit it to fulfil them.]

[F615(1)This paragraph applies to any transfer of engagements (other than contracts of reinsurance) where–U.K.

(a)the effecting of the engagements constituted the carrying on of general business;

(b)the transferor is a friendly society to which section 37(3) above applies; and

(c)the transferee is–

(i)a friendly society to which section 37(2) or (3) above applies;

F7(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9(v)an insurance company whose head office is in Switzerland, which has permission under [F10Part 4A] of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, which permission is not limited to reinsurance business;]

(vi)an insurance company whose margin of solvency is [F11supervised 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.]

[F12(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 IP completion day.]

(2)The [F13appropriate authority] shall not confirm the transfer unless–

F14(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)it is F15. . . satisfied that every policy included in the transfer evidences a contract which was entered into before the date of the application; [F16and]

(c)the relevant authority certifies that the transferee possesses the necessary margin of solvency after taking the proposed transfer into account; F17...

F18(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F19(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F20(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

F21(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

[F22(6)In this paragraph “the relevant authority" means—

F23(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)if the transferee falls within paragraph (1)(c)(v), the supervisory authority in Switzerland;

(c)if the transferee falls within paragraph (1)(c)(vi), the [F13appropriate authority] or other supervisory body responsible for the supervision;

(d) in any other case, the [F13 appropriate authority].]]

[F2415A(1)This paragraph applies to any transfer of engagements (other than contracts of reinsurance) where–U.K.

(a)the effecting of the engagements constituted the carrying on of long term business;

(b)the transferor is a friendly society to which section 37(3) above applies; and

(c)the transferee is–

(i)a friendly society to which section 37(2) or (3) above applies;

F25(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F25(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(v)an insurance company whose margin of solvency is [F26supervised 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.]

[F27(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 IP completion day.]

(2)The [F28appropriate authority] shall not confirm the transfer unless–

F29(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the relevant authority certifies that the transferee possesses the necessary margin of solvency after taking the proposed transfer into account; F30...

F31(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F32(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F33(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

F34(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

[F35(6)In this paragraph “the relevant authority" means—

F36(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)if the transferee falls within paragraph (1)(c)(v), the [F28appropriate authority] or other supervisory body responsible for the supervision;

(c)in any other case, the [F28appropriate authority].]]

F37[16U.K.The Commission shall not confirm a transfer to a friendly society of engagements the fulfilment of which will constitute the carrying on in the United Kingdom of non-insurance business of any description unless it is satisfied that there is no substantial risk that the society will not be authorised under section 32 above to carry on non-insurance business of that description.]