Paragraph 6
A friendly society to which section 37(2) or (3) above applies shall not change the requisite details of the provision of insurance in a member State other than the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.
The requirements of this paragraph are–
that the society has given a notice to the Commission stating the details of the proposed change;
that the Commission has sent to the supervisory authority in the member State in which the insurance is provided a notice in accordance with sub–paragraph (4)(a) below.
In the case of a change occasioned by circumstances beyond the society’s control, the requirements of this paragraph are that the society shall as soon as practicable give a notice to the Commission stating the details of the change.
The Commission shall, as soon as practicable after receiving a notice under sub–paragraph (2)(a) above either–
give notice to the supervisory authority in the member State in which the insurance is provided informing it of the proposed change; or
refuse to give such notice.
The Commission shall, as soon as practicable after making a decision under sub–paragraph (4) above, notify the society–
that it has given the notice referred to in that sub–paragraph, stating the date on which it did so; or
that it has refused to give the notice, stating the reasons for the refusal.
The Commission shall not refuse to give the notice referred to in sub–paragraph (4)(a) above unless, having regard to the proposed change, it appears to it that the criteria of prudent management would not or might not continue to be fulfilled in respect of the society.