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The Friendly Societies (General Charge and Fees) Regulations 1997

S.I. 1997/741 · Made 10 March 1997

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

FRIENDLY SOCIETIES

Made 10th March 1997

Laid before Parliament 11th March 1997

Coming into force 1st April 1997

The Treasury, in exercise of the powers conferred on them by sections 2(2) and (4) and 114(2) of the Friendly Societies Act 1992f1 and section 104(1) of the Friendly Societies Act 1974f2, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1992 c. 40.

f2

1994 c. 46.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3General charge in respect of the accounting year beginning 1st April 1997
  4. 4Payment of the general charge
  5. 5Fees in respect of particular functions of central office, Chief Registrar and Commission
  6. 6Inspection and copying fees
  7. 7Revocation of regulations relating to preceding accounting year
  8. Signature
  9. Schedule 1: GENERAL CHARGE PAYABLE BY SOCIETIES
  10. 1Paragraph 1
  11. 2Specified income
  12. 3Specified income
  13. 4Specified income
  14. Schedule 2FEES PAYABLE FOR CENTRAL OFFICE, CHIEF REGISTRAR OR COM MISSION FUNCTIONS
  15. Schedule 3Schedule 3
  16. Explanatory note

1Citation and commencement

These Regulations may be cited as the Friendly Societies (General Charge and Fees) Regulations 1997 and shall come into force on 1st April 1997.

2Interpretation

In these Regulations:

  • “the 1974 Act” means the Friendly Societies Act 1974;

  • “the 1992 Act” means the Friendly Societies Act 1992;

  • “accounting year” means the period of 12 months ending with 31st March;

  • “amalgamation” means an amalgamation under section 85 of the 1992 Act or under section 82 of the 1974 Act;

  • “the central office” has the meaning given in section 119 of the 1992 Act;

  • “the Chief Registrar” means the Chief Registrar of Friendly Societies;

  • “the Commission” means the Friendly Societies Commission established under section 1 of the 1992 Act;

  • “conversion” means a conversion under section 91 of the 1992 Act or under section 84 of the 1974 Act;

  • “society” means a society registered under the 1974 Act or a society incorporated under the 1992 Act; and

  • “transfer of engagements” means a transfer of engagements under section 86 of the 1992 Act or under section 82 of the 1974 Act.

3General charge in respect of the accounting year beginning 1st April 1997

(1)

A friendly society which on 1st April 1997 is a registered or incorporated society shall pay to the Commission, with respect to the accounting year beginning on that date, a sum determined in accordance with Schedule 1 to these Regulations using the value of the friendly society’s specified income for the year ended 31st December 1996 as determined in accordance with that Schedule.

(2)

Where, after 31st December 1996 and before 1st April 1997, a friendly society has transferred its engagements to another friendly society, the transferee friendly society shall, in addition to any other sum payable by it under this regulation, pay, with respect to the accounting year beginning 1st April 1997, any sum which would have been payable by the transferor friendly society had it been subject to paragraph (1) above.

4Payment of the general charge

Any sums payable under regulation 3 above by a friendly society shall be paid on or before 1st November 1997.

5Fees in respect of particular functions of central office, Chief Registrar and Commission

(1)

Upon making an application of a nature specified in Schedule 2 to these Regulations, the person who makes that application shall pay the relevant fee specified in that Schedule in respect of the examination of the application by the central office, the Chief Registrar or the Commission (as the case may be).

(2)

Any sums payable under paragraph (1) above shall be paid, in respect of functions performed by the Chief Registrar or the central office, to the Chief Registrar and in respect of functions performed by the Commission, to the Commission.

(3)

The fees specified at paragraph 20 and 22 in Schedule 2 to these Regulations may be reduced by the Commission to the fees specified at paragraphs 21 and 23 of Schedule 2 in any case where application is made to the Commission by any of the societies concerned in a proposed amalgamation, transfer of engagements or conversion, as the case may be, which are societies to which section 37(2) or (3) of the 1992 Act does not apply, to the effect that such society would otherwise be deterred from proceeding with such amalgamation, transfer of engagements or conversion, as the case may be, if the fees specified at paragraph 20 or 22, as the case may be, were to apply.

6Inspection and copying fees

Any person wishing to inspect or to be furnished with a copy of any document in the custody of the central office shall, upon making such request to inspect or to be furnished with a copy, as the case may be, pay to the Chief Registrar the relevant fee specified in Schedule 3 to these Regulations.

7Revocation of regulations relating to preceding accounting year

The Friendly Societies (General Charge and Fees) Regulations 1996f1 are revoked.

Signature

Patrick McLoughlin

Richard Ottaway

Two of the Lords Commissioners of Her Majesty’s Treasury

10th March 1997

1

The sum specified in this Schedule is the sum determined by the formula—

A×B

where

  • A=0.31/100, and

  • B=the specified income for the year ended 31st December 1996 as determined in accordance with paragraphs 2 to 4 below provided that—

    1. (a)

      where the resultant sum exceeds £25,000.00, the sum is £25,000.00; and

    2. (b)

      where the resultant sum is less than £225.00, the sum is £225.00.

2Specified income

In respect of a society to which section 37(2) or (3) of the 1992 Act applies, which is an incorporated friendly society or which carries on reinsurance business and which, for the year ended 31st December 1996, was required under section 69 of the 1992 Act to prepare annual accounts in the form specified in section 70 of the 1992 Act and in the Friendly Societies (Accounts and Related Provisions) Regulations 1994f1 (“the Accounts Regulations”), the value of the specified income for that year is the sum of the amounts entered as income items I.1, I.2a.(b), II.1, II.2.(b) and III.3.(b) in the income and expenditure account prepared by the society in accordance with Part I of Schedule 1 to the Accounts Regulations and the specified income for the year ended 31 December 1996 of every registered branch of the society as determined in accordance with paragraph 4 below.

3Specified income

In respect of a society to which section 37(2) or (3) of the 1992 Act does not apply, which is a registered society and which does not carry on reinsurance business and which, for the year ended 31st December 1996, was required under section 69 of the 1992 Act to prepare annual accounts in the form specified in section 70 of the 1992 Act and in the Accounts Regulations, the value of the specified income for that year is the sum of the amounts entered as income items 1.(a), 1.(b)(i) and 1.(c) in the income and expenditure account prepared by the society in accordance with Part 1 of Schedule 7 to the Accounts Regulations and the specified income for the year ended 31 December 1996 of every registered branch of the society as determined in accordance with paragraph 4 below.

4Specified income

In respect of a registered branch which, for the year ended 31 December 1996, was required under section 69 of the 1992 Act to prepare annual accounts in the form specified in section 70 of the 1992 Act and in the Accounts Regulations the value of the specified income for that year is the sum of the amounts entered as income item 1.(a), 1.(b)(i) and 1.(c) in the income and expenditure account prepared by the branch in accordance with Part 1 of Schedule 7 to the Accounts Regulations or which would be so entered were the branch required to prepare its income and expenditure account in accordance with that Part of that Schedule.

Schedule 2FEES PAYABLE FOR CENTRAL OFFICE, CHIEF REGISTRAR OR COM MISSION FUNCTIONS

Nature of application/functionFee payable £
1

For the incorporation of a friendly society and the registration of the friendly society’s memorandum and rules—

(a)

where it relates to a new friendly society

740
(b)

where it relates to an existing friendly society

615
2

For the registration of a branch

165
3

For the grant of authorisation under section 32 of the 1992 Act in respect of each class of insurance business and each description of non-insurance business authorised

1025
4

For the grant of authorisation under section 33 of the 1992 Act

170
5

For the registration of an annual return or a set of annual accounts (except where the society or branch concerned has by written notice sent to the central office irrevocably elected to pay the fees specified in paragraph 6 of this Schedule)—

(a)

in the case of an annual return or a set of annual accounts for a year of account ended on or before 31st December 1996

(i)

where it relates to a society

110
(ii)

where it relates to a branch

45
(b)

in the case of an annual return or a set of accounts for any subsequent year of account—

(i)

where it relates to a society

115
(ii)

where it relates to a branch

50
6

The fees specified in this paragraph shall be payable where the society or branch concerned has by notice made an election under paragraph 5 of this Schedule:

(a)

for the acknowledgement of registration of an amendment of rules (including approval of name in the case of an amendment effecting a change of name of a society or branch)—

(i)

if the amendment substitutes an entire set of rules for the existing set of rules (except as provided in paragraph 19 of this Schedule)—

(A)

where made by a society

410
(B)

where made by a branch

130
(ii)

if the amendment does not substitute an entire set of rules for the existing set of rules—

(A)

where made by a society

205
(B)

where made by a branch

55
(b)

for the acknowledgement of registration of a notice of change in the situation of the registered office—

(A)

of a society

40
(B)

of a branch

40
(c)

for the acknowledgement issued in respect of a notice of appointment of a trustee or trustees—

(A)

of a society

40
(B)

of a branch

40
(d)

for the acknowledgement of registration of a change of name of an incorporated friendly society

160
(e)

for the acknowledgement of registration of an alteration of the memorandum of an incorporated friendly society

225
7

For the registration of a special resolution—

(a)

where the special resolution relates to an amalgamation or a transfer of engagements

250
(b)

where the special resolution relates to a conversion

515
8

For the appointment of an inspector or calling of a special meeting by the Chief Registrar

205
9

For the calling of a special meeting by the Commission

515
10

For the appointment of an inspector by the Commission

205
11

For the registration of an instrument of dissolution or alteration therein—

(A)

of a society

360
(B)

of a branch

260
12

For an award of dissolution where the matter is settled without a hearing or upon one hearing without an adjournment

52
13

For an award of dissolution where more than one hearing is required or where the hearing is adjourned—

  • the same fee as where the matter is settled upon one hearing without adjournment and in addition for every hearing after the first and for every adjournment

52
14

For a direction for division or appropriation of the assets of a society—

(a)

where the value of the assets is £1,000 or less

(b)

where the value of the assets exceeds £1,000

20 % of that value £200 with an additional £10 for every £100 or part thereof in excess of £1,000
15

For an investigation into the affairs of a society or branch with a view to an award of dissolution thereof

825
16

For a document required to be signed by a Registrar, or to bear the seal of the central office, not chargeable with any other fee, provided that such fee shall not be paid by a society or branch which has not by notice elected as in paragraph 6 of this Schedule

40
17

For the approval of a form of model rules relating to a society registered as a working men’s club submitted by a sponsoring association or body

670
18

For the approval of a form of model rules relating to a society registered as a working men’s club submitted by a sponsoring association or body where such form of model rules amends an already approved form of model rules and contains a maximum of six amendments

205
19

For the registration of an amendment of rules of a society registered as a working men’s club, being a substitution of an entire set of rules for the existing set of rules, where the entire set of rules is in the form of model rules and where the application for registration is made through and endorsed by the association or body which has sponsored the rules contained in the said model

90
20

For the confirmation of an amalgamation or a transfer of engagements

2050
21

For the confirmation of an amalgamation or a transfer of engagements where a society which is not a society to which section 37(2) or (3) of the 1992 Act applies has made an application which is accepted by the Commission for a reduction in the fee otherwise payable

205
22

For the approval by the Commission of a statement relating to an amalgamation or a transfer of engagements required to be sent by a society to its members under paragraph 1 of Schedule 15 to the 1992 Act or of a statement relating to a conversion required to be sent by a society to its members under paragraph 3 of that Schedule

2050
23

For the approval by the Commission of a statement required to be sent by a society to its members as described in paragraph 22 of this Schedule where a society which is not a society to which section 37(2) or (3) of the 1992 Act applies has made an application which is accepted by the Commission for a reduction in the fee otherwise payable

310
24

For the registration of a copy of an instrument of transfer of engagements

165
25

For the registration of a scheme under section 6(5) of the 1992 Act

103
26

For a request to cancel the registration of the society

40
27

For the confirmation of a conversion

2050
28

For the consent of the Commission that an instrument of dissolution or alteration shall be of effect for the purpose of effecting or facilitating a transfer of engagements to any other friendly society or to a company

2050
29

For the consent of the Commission for a society to form or acquire control of a body corporate jointly with a person other than another incorporated friendly society

2050
30

For the consent of the Commission for a society to undertake to fulfil the engagements of another society by a special resolution of the committee of management

310
31

For the grant of a dispensation by the Commission of the requirements of section 47(1) to (6) of the 1992 Act

50
32

For a direction to a society by notice extending the period (by not more than 3 months) within which the society shall send three copies of the abstract of the actuary’s report which it is required to send to the Commission under section 46(3) of the 1992 Act

50
33

For a direction to a society by notice extending the period (by not more than 6 months) within which the society shall cause to be made and sent to the Commission the abstract of the actuary’s report which under section 47(2) of the 1992 Act should be made and sent to the Commission

50
34

For the extension by the Commission of the period within which, under regulation 57(1) of the Friendly Societies (Insurance Business) Regulations 1994f1, a society is required to deposit three copies of the statement or underwriting account prepared by the society under regulation 55(1), (3) or (5), or 56(1) or (2) of those Regulations.

50
35

For the consent of the Commission for a society to value implicit items in accordance with the provisions of regulations 9 to 11, with respect to long term business, and regulation 11, with respect to general business, of the Friendly Societies (Insurance Business) Regulations 1994

200

Schedule 3

Facility soughtFee payable £
1

The inspection on any particular day of documents relating to a single society or branch

8.00
2

For the provision of a copy of the whole of or an extract from any document—

(a)

where the copy is not certified as a true copy of a document in the custody of the Registrar—

(i)

where the copy does not exceed 5 pages, or for the first 5 pages of a copy which exceeds 5 pages

3.00
(ii)

for every page of a copy after the fifth page

0.60
(b)

where the copy is certified as provided in sub-paragraph (a) above (as an addition to whatever fee would be payable if the copy were not so certified)

8.00
3

In addition to any fee payable under paragraph 2 above, for the provision of a copy, or copies, of the whole of, or an extract from, any document by post

5.00

Explanatory note

(This note is not part of the Regulations)

These regulations provide for a general charge to be paid by friendly societies towards the expenses of the Friendly Societies Commission. The charge is levied with respect to the Commission’s accounting year beginning 1st April 1997 and is expected to raise £840,000 (an increase of 8.4% from that raised for the accounting year beginning 1st April 1996). Each friendly society (subject to a requirement to pay a minimum of £225 and a maximum of £25,000) is required to pay a sum equal to its specified income, as identified in its annual accounts for the year ended 31st December 1996 and, where a society has a registered branch, the specified income of the registered branch.

These Regulations also, by regulations 5 and 6 and the respective schedules, require and prescribe fees to be paid for matters transacted under the Friendly Societies Act 1974 or the Friendly Societies Act 1992.

A review of the cost of supplying services and of the structure of fees has been undertaken to ensure that the transaction charges relate closely to the cost of delivering the service. As a result charges for the matters transacted in paragraphs 1 to 6(a), 6(d) to 15, 17, 18 and 20 to 30 of Schedule 2 have been increased by an average of 3% and fees have been introduced for the transaction of the matters described in paragraphs 31 to 35.

The Regulations also revoke the Friendly Societies (General Charge and Fees) Regulations 1996.