Review seeks to ensure that the law supports a modern business environment for friendly societies
The Association of Financial Mutuals (AFM) has welcomed the government’s plan to review the Friendly Societies Act 1992 in the coming months.
The trade body said it has been campaigning for years for a comprehensive reform of the legislation so that the legal and regulatory framework for friendly societies gets modernised, enabling them to compete on more equal terms with other insurance companies.
The government committed to asking the Law Commission to review the Friendly Societies Act during parliamentary debates about the Co-operatives, Mutuals and Friendly Societies Bill, which was introduced last year.
The Law Commission confirmed last week that it had been invited by the Treasury to review the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Act 1992 to ensure that these pieces of legislation supported a modern business environment.
“The Law Commission review of the Friendly Societies Act is long-overdue,” Andrew Whyte (pictured), chief executive at the Association of Financial Mutuals, said in a statement. “The world has changed beyond recognition since the Act was introduced more than 30 years ago, and this has contributed to a sharp decline in the number of active societies.
“Taken together with the successful passage of the Co-operatives, Mutuals and Friendly Societies Bill through the House of Lords, this represents a key moment in our long-standing campaign for reform. We look forward to working with the Law Commission to develop a modern, relevant and proportionate legal and regulatory framework, which will enable friendly societies to continue to thrive and grow.”
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