General

Citation, commencement, interpretation and extent

1.-(1) These Regulations may be cited as the Friendly Societies (Amendment) Regulations 1993, and shall come into force on 1st January 1994.

(2) In these Regulations "the 1992 Act" means the Friendly Societies Act 1992(3).

(3) These Regulations extend to Northern Ireland.

Amendments of 1992 Act

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".

Combinations of long term and general business

3.-(1) In subsection (1) of section 37 of the 1992 Act (restrictions on combinations of business), for the words "Subject to subsection (8) below" there shall be substituted the words "Subject to subsections (1A) and (7A) below".

(2) After that subsection there shall be inserted the following subsection-

"(1A) Nothing in subsection (1) above shall prevent an authorised friendly society to which subsection (2) or (3) below applies from carrying on, or being authorised to carry on, both long term business and general business of either or both of classes 1 and 2 of Head B of Schedule 2 to this Act."

(3) For subsection (8) of that section there shall be substituted the following subsections-

"(7A) Where a friendly society to which subsection (2) or (3) above applies was on 15th March 1979 carrying on long term and general business in the United Kingdom, the society may (if authorised to do so) carry on any class (or part of a class) of long term or general business.

(8) Where a friendly society to which subsection (2) or (3) above applies is authorised by virtue of subsection (1A) or (7A) above to carry on long term and general business in the United Kingdom-

(a)the Commission shall (whether or not other conditions are imposed) impose such conditions on the society's authorisation as the Commission thinks fit for securing that the society's long term business and general business are kept separate; and

(b)those conditions shall, subject to the exceptions mentioned in subsection (9) below, require that the assets representing the funds maintained in respect of the society's long term business or, as the case may be, its general business are to be generally applicable for the purposes of that business only."

Covering of commitments situated in another member State

4.-(1) In subsection (9) of section 57 of the 1992 Act (covering of risks situated in another member State), after the words "in this section" there shall be inserted the words "and section 57A below".

(2) After that section there shall be inserted the following section-

"Covering of commitments situated in another member State.

57A-(1) Where a friendly society intends to cover any commitments which are situated in a member State other than the United Kingdom-

(a)through an establishment in the United Kingdom, or

(b)through an establishment in a member State other than that in which the commitments will be situated,

it shall before doing so give notice of its intention to the Commission.

(2) The notice shall indicate-

(a)the member State in which the insurance is to be provided;

(b)the nature of the commitments which the society intends to cover;

(c)the member State in which the establishment through which the commitments will be covered is situated.

(3) Where the society intends to cover commitments situated in more than one member State, the information specified above may be contained in a single notice but must be set out separately for each member State.

(4) Where a friendly society has duly notified the Commission of its intention to cover commitments situated in another member State where administrative authorisation is required to do so then, if the original notice related-

(a)only to commitments in respect of which such authorisation is required; or

(b)only to commitments in respect of which such authorisation is not required,

and the society subsequently intends to extend its activities to commitments falling within the other category, it shall before doing so (without prejudice to the generality of the preceding provisions of this section) comply with subsections (1) to (3) above in relation to those commitments.

(5) A friendly society with the intention mentioned in subsection (1) above may apply to the Commission for a certificate attesting-

(a)that the society possesses the minimum margin of solvency calculated in accordance with Article 19 of the first life Directive, and

(b)that by virtue of this Act and the society's authorisation under section 32 above, issued in accordance with Article 6(1) of that Directive, the society is able to operate outside the member State of establishment.

(6) A friendly society with the intention mentioned in subsection (1) above in respect of commitments to be covered through an establishment in the United Kingdom may apply to the Commission for a certificate-

(a)indicating the classes of insurance business which the society is authorised to carry on in the United Kingdom; and

(b)stating that the Commission does not object to the society covering the commitments through such an establishment.

(7) The Commission shall, if it thinks an application under subsection (5) or (6) above ought to be granted, issue the certificate.

(8) If the Commission refuses such an application it shall give notice to the society of its decision and of the reasons for it.

(9) In this section-

• "commitment" does not include a commitment represented by insurance business of class VII of Head A of Schedule 2 to this Act;

• "friendly society" means a friendly society to which section 37(2) above applies."

Transfers of long term business

5. After paragraph 15 of Schedule 15 to the 1992 Act (amalgamations, transfers of engagements and conversion: supplementary) there shall be inserted the following paragraph-

"15A.-(1) This paragraph applies to a transfer by a friendly society to which section 37(2) above applies of engagements (other than contracts of reinsurance) the effecting of which constituted the carrying on of long term business.

(2) The Commission shall not confirm such a transfer if it is to a transferee who is or will be authorised under Part I of the Insurance Companies Act 1982(4) to carry on in the United Kingdom insurance business and whose head office is situated in another member State, unless the supervisory authorities of that State certify that the transferee will, after taking the proposed transfer into account, possess the margin of solvency required for compliance with the first life Directive.

(3) The Commission shall not confirm such a transfer in relation to engagements entered into by way of provision of insurance in another member State unless-

(a)the transferee fulfils or will fulfil the conditions mentioned in Articles 11, 12, 14 and 16 of the second life Directive in the member State in which the commitment is situated; and

(b)the supervisory authorities of that member State agree to the transfer.

(4) The Commission shall not confirm such a transfer, in relation to engagements which cover commitments situated in the United Kingdom, to a transferee who is not or will not be authorised under section 32 above or Part I of the Insurance Companies Act 1982 unless-

(a)the transferee is an insurance company established in another member State which is or will be entitled in accordance with section 81B of the Insurance Companies Act 1982 to provide insurance in the United Kingdom in respect of those commitments through that establishment; and

(b)the supervisory authorities of the member State of that establishment agree to the transfer.

(5) The Commission shall not confirm such a transfer, in relation to engagements which cover commitments situated in another member State, to a transferee who is not or will not be authorised under section 32 above or Part I of the Insurance Companies Act 1982 unless-

(a)the transferee is an insurance company established in another member State and the supervisory authorities of that member State agree to the transfer; and

(b)where the commitment is not situated in the transferee's member State of establishment-

(i)the transferee fulfils the conditions mentioned in Articles 11, 12, 14 and 16 of the second life Directive in the member State in which the commitment is situated;

(ii)the law of that member State provides for the possibility of such a transfer; and

(iii)the supervisory authorities of that member State agree to the transfer."

Law applicable to contracts of insurance

6.-(1) For section 101 of the 1992 Act there shall be substituted the following section-

"101. Law applicable to contracts of insurance with friendly societies.

(1) The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes general business and which covers risks situated in the United Kingdom or another member State shall be determined-

(a)in the case of a society to which section 37(3) above applies, in accordance with Part I of Schedule 20 to this Act; and

(b)in any other case, in accordance with that Part of that Schedule as modified by subsection (3) below.

(2) The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes long term business and which covers commitments or risks situated in the United Kingdom or another member State shall be determined-

(a)in the case of a society to which section 37(2) above applies, in accordance with Part II of Schedule 20 to this Act; and

(b)in any other case, in accordance with Part I of that Schedule as modified by subsection (3) below.

(3) For the purposes of paragraph (b) of subsections (1) and (2) above, Part I of Schedule 20 to this Act shall be modified as follows-

(a)the words "or central administration", in each place where they occur, shall be omitted;

(b)in paragraph 5(1), for the words from "shall act" to the end there shall be substituted the words "shall apply the general rules of private international law of that part of the United Kingdom concerning contractual obligations"; and

(c)in paragraph 5(2), for the words "those provisions" there shall be substituted the words "those rules".

(4) The provisions of this section do not apply in relation to a contract of reinsurance."

(2) The provisions of Schedule 20 to that Act (law applicable to certain contracts of insurance) shall become Part I of that Schedule under the heading "GENERAL BUSINESS BY SOCIETIES TO WHICH SECTION 37(3) APPLIES".

(3) In that Part of that Schedule-

(a)after the words "habitual residence", in each place where they occur, there shall be inserted the words "or central administration";

(b)in paragraphs 3(2), 4(2) and 5(1), for the words "this Schedule" there shall be substituted the words "this Part of this Schedule";

(c)in paragraph 5(1), for the words from "shall apply" to the end there shall be substituted the words "shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990"; and

(d)in paragraph 5(2), for the words "those rules" there shall be substituted the words "those provisions".

(4) After that Part of that Schedule there shall be inserted the following Part-

"Part IILong Term Business by Societies to which Section 37(2) applies

General rules as to applicable law

6. The law applicable to the contract of insurance is the law of the member State in which the commitment is situated.

However, where the law of that member State so allows, the parties may choose the law of another country.

7. Where the person who has entered into the contract of insurance is an individual and has his habitual residence in a member State other than that of which he is a national, the parties may choose the law of the member State of which he is a national.

Mandatory rules

8. Nothing in this Part of this Schedule restricts the application of the rules of a part of the United Kingdom in a situation where they are mandatory, irrespective of the law otherwise applicable to the contract.

Supplementary provisions

9.-(1) Where a member State includes several territorial units, each of which has its own rules of law concerning contractual obligations, each unit shall be considered as a country for the purposes of identifying the applicable law.

(2) The provisions of this Part of this Schedule apply to conflicts between the laws of the different parts of the United Kingdom.

10.-(1) Subject to the preceding provisions of this Part of this Schedule, a court in a part of the United Kingdom shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990.

(2) In particular, reference shall be made to those provisions to ascertain for the purposes of paragraph 6 above what freedom of choice the parties have under the law of a part of the United Kingdom."

(5) For subsection (1A) of section 2 of the Contracts (Applicable Law) Act 1990(5) (conventions to have the force of law) there shall be substituted the following subsection-

"(1A) The internal law for the purposes of Article 1(3) of the Rome Convention is whichever of the following are applicable, namely-

(a)the provisions of Schedule 3A to the Insurance Companies Act 1982 (law applicable to certain contracts of insurance with insurance companies), and

(b)the provisions of Schedule 20 to the Friendly Societies Act 1992(6) as applied by subsections (1)(a) and (2)(a) of section 101 of that Act (law applicable to certain contracts of insurance with friendly societies)."

Interpretation of 1992 Act

7.-(1) In subsection (1) of section 117 of the 1992 Act (insurance business etc.), after the definition of "annual contribution income" there shall be inserted the following definition-

• ""commitment" means, in relation to a friendly society to which section 37(2) applies, a commitment represented by insurance business of any class of Head A of Schedule 2 to this Act;"

(2) For subsection (6) of that section there shall be substituted the following subsections-

"(6) In relation to a contract of insurance entered into by a person on any date with a friendly society to which section 37(3) above applies the effecting of which constitutes general business, or a contract of insurance entered into by a person on any date with a friendly society to which section 37(2) above applies the effecting of which constitutes long term business, references in this Act to the member State where the risk or commitment is situated shall be construed as follows-

(a)where that person is an individual, as references to the member State where he has his habitual place of residence on that date; and

(b)in any other case, as references to the member State where the establishment of that person to which the contract relates is situated on that date.

(7) In relation to any other contract of insurance with a friendly society, references in this Act to the member State where the risk is situated shall be construed as references to the member State where the person who has entered into the contract has his habitual place of residence."

Information Provisions

Statements in respect of long term business

8.-(1) Paragraph (2) below applies where any friendly society to which section 37(2) of the 1992 Act applies provides, in any financial year ending on or after the commencement date, long term insurance in a member State other than the United Kingdom through an establishment in the United Kingdom.

(2) The society shall prepare, in respect of long term insurance so provided by it, a statement of gross premiums receivable by each of classes I to VI specified in Head A of Schedule 2 to that Act which shows separately-

(a)those receivable in respect of commitments for which the society requires authorisation in the member State in which the commitments are situated in accordance with Article 12 of the second life Directive; and

(b)those receivable in respect of commitments for which the society does not require authorisation in that member State in accordance with Article 14 of that Directive.

(3) A separate statement shall be prepared under paragraph (2) above in respect of each member State in which the society provides the insurance.

(4) In this regulation and regulation 9 below-

(a)"gross premiums" means premiums after deduction of discounts, refunds, rebates of premium and any taxes or levies that are related to those premiums but before deduction of premiums for reinsurance ceded and before deduction of commission payable by the society; and

(b)references to the provision of long term or general insurance in a member State shall be construed in accordance with section 81A of the Insurance Companies Act 1982(7).

(5) In this regulation and regulations 9 to 13 below-

(a)"the commencement date" means, in Great Britain, the day after the day on which these Regulations are made and, in Northern Ireland, 1st January 1994; and

(b)unless the context otherwise requires, expressions which are also used in the 1992 Act have the same meanings as they have for the purposes of that Act.

Statements and underwriting accounts in respect of general business

9.-(1) Paragraphs (2) and (4) below apply where any friendly society to which section 37(3) of the 1992 Act applies provides, in any financial year ending on or after the commencement date, general insurance in a member State other than the United Kingdom through an establishment in the United Kingdom.

(2) The society shall prepare, in respect of general insurance so provided by it-

(a)a statement of gross premiums receivable by each group of classes specified in paragraph (5) below; and

(b)where the gross premiums earned in respect of general insurance so provided by it exceed 2,500,000 ECU, an underwriting account showing, in respect of each group of classes so specified, the items specified in paragraph (6) below.

(3) A separate statement and underwriting account shall be prepared under paragraph (2) above in respect of each member State in which the society provides the insurance.

(4) If-

(a)in respect of general insurance provided by it in the member State concerned through all its establishments (in the United Kingdom and elsewhere), the society earns in any financial year gross premiums in excess of 2,500,000 ECU; and

(b)the supervisory authorities of that member State request the Commission to give a direction under this paragraph,

the Commission may by notice in writing direct the society in future to prepare, in respect of general insurance provided by it in that member State through an establishment in the United Kingdom, an underwriting account showing, in respect of each group of classes specified in paragraph (5) below, the items specified in paragraph (6) below.

(5) For the purposes of paragraphs (2) and (4) above the groups of classes are as follows-

(a)accident and sickness, that is to say, general business of classes 1 and 2 specified in Head B of Schedule 2 to the 1992 Act; and

(b)miscellaneous financial loss, that is to say, general business of class 3 so specified.

(6) For the purposes of paragraphs (2) and (4) above the items which the underwriting account must show are as follows-

(a)the total gross premiums earned in the financial year;

(b)the total cost of gross claims incurred in the financial year;

(c)the total cost of gross commission attributable to premiums referred to in sub-paragraph (a) above; and

(d)the gross underwriting result.

(7) In paragraph (6) above-

(a)the gross premiums mentioned in sub-paragraph (a) are the gross premiums written in the financial year in addition to gross premiums unearned brought forward less gross premiums unearned carried forward;

(b)the gross claims mentioned in sub-paragraph (b) are the gross claims paid in the financial year in addition to gross claims outstanding carried forward less gross claims outstanding brought forward, and including directly attributable expenses;

(c)the gross commission mentioned in sub-paragraph (c) is the gross commission paid in the financial year plus gross commission brought forward less gross commission carried forward; and

(d)the gross underwriting result mentioned in sub-paragraph (d) is reached by deducting from the amount in sub-paragraph (a) the amounts referred to in sub-paragraphs (b) and (c).

Regulations 8 and 9: supplementary provisions

10.-(1) Where a statement or underwriting account is prepared by a friendly society under regulation 8(2) or 9(2) or (4) above, the society shall-

(a)cause the statement or account to be printed; and

(b)deposit three copies of the statement or account with the Commission within nine months after the end of the financial year to which it relates;

but the Commission may extend that period of nine months by such period (not exceeding three months) as it thinks fit.

(2) One of the copies of any statement or account deposited under paragraph (1) above shall be signed by the chief executive or secretary of the society.

(3) The Commission shall-

(a)consider any statement or account deposited under paragraph (1) above, and

(b)if the statement or account appears to it to be inaccurate or incomplete in any respect, communicate with the society with a view to the correction of any inaccuracies and the supply of any deficiencies.

Notification of non-provision of insurance

11.-(1) This regulation applies where, in accordance with section 57 or 57A of the 1992 Act (covering of risks or commitments situated in another member State), a friendly society has given notice to the Commission of its intention to cover any risks or commitments situated in a member State other than the United Kingdom-

(a)through an establishment in the United Kingdom, or

(b)through an establishment in a member State other than that in which the risks or commitments will be situated.

(2) If the society-

(a)does not cover, in any financial year ending on or after the commencement date, risks or commitments situated in that member State; and

(b)has not informed the Commission in writing, before the beginning of that year, that it no longer intends to cover such risks or commitments,

the society shall notify the Commission of the fact mentioned in paragraph (a) above within nine months after the end of that year.

(3) The Commission shall-

(a)consider any notification given under paragraph (2) above, and

(b)if the notification appears to it to be inaccurate or incomplete in any respect, communicate with the society with a view to the correction of any inaccuracies and the supply of any deficiencies.

Default in complying with regulations 8 to 11

12.-(1) A friendly society shall be guilty of an offence if it makes default in complying with any of regulations 8 to 11 above.

(2) A person shall be guilty of an offence if either-

(a)he causes or permits to be included in a document deposited with the Commission under regulation 10(1) above a statement which he knows to be false in a material particular; or

(b)he recklessly causes or permits to be so included a statement which is false in a material particular.

(3) A person guilty of an offence under this regulation shall be liable-

(a)on summary conviction in Great Britain, to a fine not exceeding level 5 on the standard scale; and

(b)on summary conviction in Northern Ireland, to a fine not exceeding £2,000.

Transitional provision

13. In respect of any financial year part of which falls before the commencement date, the statement or underwriting account required by regulation 8(2) or 9(2) or (4) above may be prepared solely in respect of long term or general insurance provided on or after that date.

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which make amendments to the Friendly Societies Act 1992 ("the 1992 Act") and the Contracts (Applicable Law) Act 1990, implement-

(a)the relevant provisions of the Second Life Directive (that is, Council Directive 90/619/EEC on the coordination of laws, regulations and administrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 79/267/EEC (O.J. No. L330, 29.11.90, p.50));

(b)the remaining provisions of the Second Non-Life Directive (that is, Council Directive 88/357/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC (O.J. No. L172, 4.7.88, p.1)); and

(c)provisions in Article 16 of the Third Life Directive (that is, Council Directive 92/96/EEC on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (O.J. L360, 9.12.92, p.1)).

The Regulations introduce the provisions referred to above for a society-

(a)to which section 37(2) of the 1992 Act applies, that is, in relation to a society which falls within the scope of the Second or Third Life Directive (hereinafter referred to as a "Life Directive society"); and

(b)to which section 37(3) of the 1992 Act applies, that is, in relation to a society which falls within the scope of the Second Non-Life Directive (hereinafter referred to as a "Non-Life Directive society").

Minor consequential amendments are made to provisions of the 1992 Act in relation to societies which are neither Life nor Non-Life Directive societies in order to ensure consistency in the drafting style within the Act.

Regulation 1 provides for the citation, commencement and extent of the Regulations and defines the 1992 Act.

Regulation 2 inserts a new section 36A into the 1992 Act which empowers the Friendly Societies Commission ("the Commission"), where it is proposing to impose conditions on the authorisation of a Life or Non-Life Directive society for failure to satisfy obligations imposed on it under the law of any member State giving effect to the "life or general insurance Directives", to direct that the proposed conditions shall be deemed to have been imposed for a specified period. Definitions of "the life Directives" and "the general insurance Directives" are set out in section 119 of the 1992 Act. The period specified runs from the date of service of the Commission's notice of proposal to impose conditions until the date of service of the Commission's decision notice as defined by section 36A(3).A society may appeal against such a direction, in the same way as it may appeal against a decision to impose conditions under section 36, under section 58 of the 1992 Act.

Regulation 2(2) inserts an 8th criterion of prudent management into section 50(3) of the 1992 Act.

Regulation 3 inserts new provisions into section 37 of the 1992 Act so as to extend a Life or Non-Life Directive society's power to carry on both long term and general business (other than general business of class 3).

Regulation 4 inserts a new section 57A into the 1992 Act which sets out the requirements to be met by a Life Directive society which proposes to cover commitments in another member State through an establishment in the United Kingdom or in another member State other than that in which the commitment is situated.

Regulation 5 inserts a new paragraph 15A into Schedule 15 of the 1992 Act. This provision sets out particular requirements which must be met before the Commission may confirm a transfer of engagements by a Life Directive society which consist of contracts of long term insurance (other than reinsurance). The new requirements in respect of transfers of long term insurance are similar to those applicable to transfers of general insurance as set out in paragraphs 15 of Schedule 15 to the 1992 Act.

Regulation 6 substitutes section 101 of, and amends Schedule 20 to, the 1992 Act by inserting new rules governing the law applicable to contracts of direct long term insurance covering commitments in the Community entered into by Life Directive societies. Where a contract has a connection with more than one country (including different parts of the United Kingdom) the rules will determine which law is to govern the contract.

Regulation 6(5) amends section 2 of the Contracts (Applicable Law) Act 1990 to provide that the internal law in respect of contracts with Life and Non-Life Directive societies for the purposes of Article 1(3) of the Rome Convention is as set out in Schedule 20 to the 1992 Act.

Regulation 7 inserts interpretation provisions in section 117 of the 1992 Act defining commitment and for determining where a commitment is situated.

Regulation 8 requires a Life Directive society which provides life insurance in another member State through an establishment in the United Kingdom to submit a return analysing gross premiums to the Commission.

Regulation 9 requires a Non-Life Directive society which provides general insurance in another member State through an establishment in the United Kingdom to submit a return analysing gross premiums, and, in specified circumstances, an underwriting account, to the Commission.

Regulation 10 contains supplementary provisions relating to the statements and accounts required under regulations 8 and 9.

Regulation 11 sets out a requirement for a Life or Non-Life Directive society which has notified the Commission that it is intending to cover commitments or risks in another member State, to notify the Commission where it has not covered any such risks or commitments in the course of a financial year.

Regulation 12 makes it an offence for a Life or Non-Life Directive society to make default in complying with regulations 8 to 11 and for any person to supply false information.

Regulation 13 contains a transitional provision for the coming into force of regulations 8 and 9 to ensure that Life or Non-Life Directive societies do not have to supply information on any insurance provided prior to the commencement of these Regulations.

A review of the cost of compliance with these Regulations has been undertaken and the resulting cost compliance assessment may be purchased from the Secretary, Friendly Societies Commission, 15 Great Marlborough Street, London W1V 2AX.