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Change 1
As published
37 Restriction on combinations of business.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) This subsection applies to a friendly society which carries on long term business—
(a) if its rules do not contain provision for calling up additional contributions, for reducing benefits or for claiming assistance from other persons who have undertaken to provide it; or
(b) if its annual contribution income from long term business exceeded 500,000 ECU for 3 consecutive years and it is not the subject of a direction under subsection (5) below;
and, for the purposes of paragraph (b) above, years ending before 1st January 1985 shall be disregarded.
(3) This subsection applies to a friendly society which carries on general business—
(a) if its rules do not contain provision for calling up additional contributions or for reducing benefits; or
(b) if its annual contribution income from general business in any previous year exceeded 1,000,000 ECU and it is not the subject of a direction under subsection (5) below;
and, for the purposes of paragraph (b) above, years ending before 1st January 1993 shall be disregarded.
(4) In subsections (2) and (3) above a reference to a year, in relation to annual contribution income, is a reference to any financial year of a society for which, at the relevant time, accounts have been or ought to have been prepared.
(5) The appropriate authority may, if it is satisfied that it is consistent with the international obligations of the United Kingdom to do so, direct that a friendly society—
(a) which is, by virtue only of paragraph (b) of subsection (2) above, a society to which that subsection applies; or
(b) which is, by virtue only of paragraph (b) of subsection (3) above, a society to which that subsection applies;
shall, unless the direction is revoked, be treated as not being a society to which subsection (2) or, as the case may be, subsection (3) above applies.
(6) If—
(a) the appropriate authority has given a direction under subsection (5) above in relation to a society such as is mentioned in subsection (5)(a) above; and
(b) the society’s annual contribution income from long term business exceeds 500,000 ECU for 3 consecutive years ending after a date specified in the direction,
the appropriate authority shall revoke the direction.
(7) If—
(a) the appropriate authority has given a direction in relation to a society such as is mentioned in subsection (5)(b) above; and
(b) the society’s annual contribution income from general business in a year ending after a date specified in the direction exceeded 1,000,000 ECU,
the appropriate authority shall revoke the direction.
(7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Your change, as a redline
37 Restriction on combinations of business.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) This subsection applies to a friendly society which carries on long term business—
(a) if its rules do not contain provision for calling up additional contributions, for reducing benefits or for claiming assistance from other persons who have undertaken to provide it; or
(b) if its annual contribution income from long term business exceeded 500,000 ECU for 3 consecutive years and it is not the subject of a direction under subsection (5) below;
and, for the purposes of paragraph (b) above, years ending before 1st January 1985 shall be disregarded.
(3) This subsection applies to a friendly society which carries on general business—
(a) if its rules do not contain provision for calling up additional contributions or for reducing benefits; or
(b) if its annual contribution income from general business in any previous year exceeded 1,000,000 ECU and it is not the subject of a direction under subsection (5) below;
and, for the purposes of paragraph (b) above, years ending before 1st January 1993 shall be disregarded.
(4) In subsections (2) and (3) above a reference to a year, in relation to annual contribution income, is a reference to any financial year of a society for which, at the relevant time, accounts have been or ought to have been prepared.
(5) The appropriate authority may, if it is satisfied that it is consistent with the international obligations of the United Kingdom to do so, direct that a friendly society—
(a) which is, by virtue only of paragraph (b) of subsection (2) above, a society to which that subsection applies; or
(b) which is, by virtue only of paragraph (b) of subsection (3) above, a society to which that subsection applies;
shall, unless the direction is revoked, be treated as not being a society to which subsection (2) or, as the case may be, subsection (3) above applies.
(6) If—
(a) the appropriate authority has given a direction under subsection (5) above in relation to a society such as is mentioned in subsection (5)(a) above; and
(b) the society’s annual contribution income from long term business exceeds 500,000 ECU for 3 consecutive years ending after a date specified in the direction,
the appropriate authority shall revoke the direction.
(7) If—
(a) the appropriate authority has given a direction in relation to a society such as is mentioned in subsection (5)(b) above; and
(b) the society’s annual contribution income from general business in a year ending after a date specified in the direction exceeded 1,000,000 ECU,
the appropriate authority shall revoke the direction.
(7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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