The Friendly Societies Act 1992 (Transitional and Consequential Provisions) Regulations 1993

Explanatory Note

(This note is not part of the Regulations.)

These Regulations make transitional and consequential provisions in consequence of the coming into force of provisions of the Friendly Societies Act 1992 by virtue of the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993 (S.I. 1993/16 (c.1)), the Friendly Societies Act 1992 (Commencement No. 5 and Savings) Order 1993 (S.I. 1993/1186 (c. 23))and the Friendly Societies Act 1992 (Commencement No. 6 and Transitional Provisions) Order 1993 (S.I. 1993/2213 (c. 43)).

Regulation 3 provides for a transitional period during which industrial assurance companies and collecting societies are to change the particulars in their premium receipt books to reflect the amendments to the Industrial Assurance and Friendly Societies Act 1948 by provisions of the Friendly Societies Act 1992 brought into force by the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993, the Friendly Societies Act 1992 (Commencement No. 5 and Savings) Order 1993 and the Friendly Societies Act 1992 (Commencement No. 6 and Transitional Provisions) Order 1993. The period lasts until such companies or societies reprint their premium receipt books or until 1st January 1996, whichever is the sooner.

Under regulation 4 friendly societies, in the first financial year in which they are obliged (under section 69 of the Building Societies Act 1986 as applied to friendly societies by section 27 of, and Schedule 11 to, the 1992 Act) to give details of related business, may elect to provide the details in banded form as prescribed by the Commission after the start of the financial year. Section 27 and Schedule 11 were brought into force by the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993 and by the Friendly Societies Act 1992 (Commencement No. 6 and Transitional Provisions) Order 1993.

Regulation 5 is a corrective provision to add a necessary reference to the Friendly Societies Commissions power to award the dissolution of a registered friendly society under section 95A(1) of the Friendly Societies Act 1974 to section 93(1)(c) of the 1974 Act. Section 95A(1) was inserted by the Friendly Societies Act 1992 and brought into force by the Friendly Societies Act 1992 (Commencement No. 5 and Savings) Order 1993.

Owing to the staggered commencement of sections 31 and 32 of the Friendly Societies Act 1992 by the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993 and the Friendly Societies Act 1992 (Commencement No. 6 and Transitional Provisions) Order 1993 there was a potential gap in the application of section 32(7) of the Act to registered friendly societies which had been authorised to carry on insurance business before 1st January 1993 under the Friendly Societies (Long Term Insurance Business) Regulations 1987 (S.I. 1987/2132) and which incorporate under the Friendly Societies Act 1992 on 1st January 1994. Regulation 6 ensures that section 32(7) has full effect in deeming that an authorisation granted under the 1987 Regulations, including one which has been extended in accordance with regulation 9 of those Regulations, is treated as if it were a corresponding authorisation under section 32 of the 1992 Act.

Regulations 7 and 8 respectively amend and repeal section 19(1) and (2) of the Trade Union and Labour Relations (Consolidation) Act 1992 consequent on the repeals of section 4 of the Industrial Assurance Act 1923 and of section 6 of the Industrial Assurance and Friendly Societies Act 1948 by the Friendly Societies Act 1992, and their replacement by section 99 of the 1992 Act, all of which were brought into force by the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993.

Regulation 9 repeals amendments of proposed enactments by the 1992 Act which were not in the event enacted until after the 1992 Act. The provisions of the 1992 Act relating to which the amendments were made have now all been brought into force and appropriate secondary legislation, including regulations 7 and 8 of these Regulations will make the necessary amendments instead.

Regulation 10 allows friendly societies which incorporate on or after 1st January 1994 and which carried on long-term business on 13th January 1993, the date on which section 44 of the 1992 Act came into force for incorporated friendly societies under the Friendly Societies Act 1992 (Commencement No. 3 and Transitional Provisions) Order 1993, one month after theirincorporation in which to appoint an actuary notwithstanding that the effect of section 44(2)(a) of the 1992 Act is to require an actuary to be appointed on incorporation. This provision does not apply to friendly societies which are already required under section 44 of the 1992 Act to appoint an actuary before they incorporate.