Explanatory note

This Order varies Schedule 7 to the Friendly Societies Act 1992 (which lists the activities which may be carried on by a subsidiary of, or a body jointly controlled by, an incorporated friendly society). A new activity is added, as paragraph 1A, namely the establishment and management, or arranging for the establishment and management, of individual savings accounts; that is, plans of a kind referred to in section 333(1A) of the Income and Corporation Taxes Act 1988.

Subsidiaries which carry on this activity may be required to be authorised, or obtain approval, under the relevant legislation.

The Individual Savings Accounts Regulations 1998 (S.I. 1998 No. 1870), made by the Treasury, set out the detailed requirements in respect of the scheme of individual savings accounts. The Inland Revenue has published a compliance cost assessment of such accounts. The Friendly Societies (Activities of a Subsidiary) Order 1998 will not impose any new burdens on business, accordingly, no additional compliance cost assessment has been prepared.