# The Financial Services Act 1986 (Transfer of Functions Relating to Friendly Societies) (Transitional Provisions) Order 1987, Note: Explanatory note


(This note is not part of the Order)
This Order makes a transitional provision in connection with the transfer of most of the Chief Registrar’s functions under the Financial Services Act 1986 (“the Act”) to the Securities and Investments Board Limited (“SIB”): that transfer was made by the Financial Services Act 1986 (Transfer of Functions Relating to Friendly Societies) Order 1987 (S.I. 1987/925).
Under paragraph 3(1) of Schedule 2 to the Act when SIB considers an application for recognition by a self-regulating organisation for friendly societies, it has to apply to that organisation’s rules a test of equivalence to its own rules and regulations, in terms of investor protection. This Order provides that for a transitional period (i.e. before 3rd October 1988), the equivalence requirement shall not be treated as unsatisfied by reason only of the fact that a contravention of the rules of the organisation is not actionable by a person who has suffered loss as a result of that contravention. This complements articles 3 and 4 of the Financial Services Act 1986 (Commencement) (No. 6) Order 1987 (S.I. 1987/1997.) which provide that paragraph 22(4)(d) of Schedule 11 to the Act should not come into force until 3 October 1988: that paragraph provides that a contravention of rules by a member of a self-regulating organisation for friendly societies shall be actionable by a person who has suffered loss as a result.

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Source: https://www.legislation.gov.uk/uksi/1987/2069/note (the official version)
Page: https://openlegislation.uk/financial-services-act-1986-transfer-of-functions-relating-to-friendly-societies-transitional-provisions-order-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.