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The Friendly Societies (Insurance Business No. 2) Regulations 1993

S.I. 1993/2520 · Made 19 October 1993

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 19th October 1993

Laid before Parliament 21st October 1993

Coming into force 1st January 1994

The Friendly Societies Commission, being a Department designated for the purposes of section 2(2) of the European Communities Act 1972f1 in relation to the authorisation of the carrying on by friendly societies of insurance business and the regulation of such business and its conduct and in relation to anything supplemental or incidental to such mattersf2, in exercise of the powers conferred by that section and, with the consent of the Treasury, in exercise of the powers conferred upon it by sections 45(1) and (2), 46(1), (3) and (8), 48(1), (2), (6) and (7), 49(1), 56(1), (2) and (5) and 121(3) of the Friendly Societies Act 1992f3 and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1972 c. 68.

f2

The European Communities (Designation) (No. 5) Order 1992 (S.I. 1992/3197).

f3

1992 c. 40; section 199(1) contains a definition of “the Commission”.

Contents

  1. Part I: PRELIMINARY
  2. 1Citation and commencement
  3. 2Interpretation: general
  4. Part II: MARGINS OF SOLVENCY
  5. 3Application: Part II
  6. 4Required margin of solvency
  7. 5Guarantee fund and minimum guarantee fund
  8. 6Minimum guarantee fund: long term business
  9. 7Minimum guarantee fund: general business
  10. 8Valuation of solvency margins
  11. 9Implicit items: future surpluses
  12. 10Implicit items: zillmerising
  13. 11Implicit items: hidden reserves
  14. Part III: MATCHING AND LOCALISATION
  15. 12Application: Part III
  16. 13Matching: general requirement
  17. 14Matching: property linked benefits
  18. 15Matching: currency of general business liabilities
  19. 16Matching: exception for certain general business liabilities
  20. 17Localisation
  21. 18Exclusions from regulations 13 and 17
  22. Part IV: VALUATION OF ASSETS
  23. 19Interpretation: Part IV
  24. 20Application: Part IV
  25. 21Shares in and debts due or to become due from dependants
  26. 22Valuation of assets and liabilities of dependants for the purposes of regulation 21
  27. 23Debts and other rights
  28. 24Land
  29. 25Equipment
  30. 26Unlisted securities
  31. 27Unit trusts
  32. 28Listed investments
  33. 29Life interests, reversionary interests etc
  34. 30Other assets
  35. 31Assets to be taken into account only to a specified extent
  36. Part V: DETERMINATION OF LIABILITIES
  37. 32Interpretation: Part V
  38. 33Application: Part V
  39. 34Long term and general business
  40. 35Long term liabilities
  41. 36Nature and term of assets
  42. 37Avoidance of future valuation strain
  43. 38Valuation of future premiums
  44. 39Acquisition expenses
  45. 40Rates of interest
  46. 41Rates of mortality and disability
  47. 42Expenses
  48. 43Options
  49. 44Contracts not to be treated as assets
  50. 45No credit for profits from voluntary discontinuance
  51. Part VI: LINKED LONG TERM CONTRACTS
  52. 46Application: Part VI
  53. 47Linked long term contracts
  54. Part VII: MISCELLANEOUS
  55. 48Annual actuarial investigation: prescribed societies
  56. 49Annual investigation: signature of copy of abstract
  57. 50Transitional provision
  58. 51Revocations
  59. Signature
  60. Schedule 1: LONG TERM BUSINESS MARGIN OF SOLVENCY
  61. 1Long term classes I and II
  62. 2Long term classes III and VII
  63. 3Long term classes IV and VI
  64. 4Long term class V
  65. Schedule 2: GENERAL BUSINESS SOLVENCY MARGIN: FIRST METHOD OF CALCULATION (PREMIUM BASIS)
  66. 1Paragraph 1
  67. 2Paragraph 2
  68. 3Paragraph 3
  69. 4Paragraph 4
  70. 5Paragraph 5
  71. 6Paragraph 6
  72. 7Paragraph 7
  73. 8Paragraph 8
  74. 9Paragraph 9
  75. 10Paragraph 10
  76. 11Paragraph 11
  77. 12Paragraph 12
  78. 13Paragraph 13
  79. 14Paragraph 14
  80. 15Paragraph 15
  81. Schedule 3: GENERAL BUSINESS SOLVENCY MARGIN: SECOND METHOD OF CALCULATION (CLAIMS BASIS)
  82. 1Paragraph 1
  83. 2Paragraph 2
  84. 3Paragraph 3
  85. 4Paragraph 4
  86. 5Paragraph 5
  87. 6Paragraph 6
  88. 7Paragraph 7
  89. 8Paragraph 8
  90. 9Paragraph 9
  91. 10Paragraph 10
  92. Schedule 4: VALUE OF DEPENDANTS
  93. Part I: THE SUPPLEMENTARY AMOUNT
  94. 1Paragraph 1
  95. 2Paragraph 2
  96. Part II: FURTHER PROVISIONS AND MODIFICATIONS OF THE REGULATIONS APPLICABLE WITH RESPECT TO THE DETERMINATION OF THE VALUE OF DEPENDANTS
  97. 3Paragraph 3
  98. 4Paragraph 4
  99. 5Paragraph 5
  100. Schedule 5: ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT
  101. IPart I
  102. IIPart II
  103. Part III
  104. 15Paragraph 15
  105. 16Paragraph 16
  106. 17Paragraph 17
  107. Schedule 6: PERMITTED LINKS
  108. Part I: DESCRIPTIONS OF PROPERTY BY REFERENCE TO WHICH BENEFITS MAY BE DETERMINED
  109. 1Paragraph 1
  110. 2Paragraph 2
  111. 3Paragraph 3
  112. 4Paragraph 4
  113. 5Paragraph 5
  114. 6Paragraph 6
  115. 7Paragraph 7
  116. 8Paragraph 8
  117. 9Paragraph 9
  118. 10Paragraph 10
  119. 11Paragraph 11
  120. 12Paragraph 12
  121. Part II: INDICES BY REFERENCE TO WHICH BENEFITS MAY BE DETERMINED
  122. 13Paragraph 13
  123. 14Paragraph 14
  124. 15Paragraph 15
  125. Part III
  126. 16Paragraph 16
  127. 17Paragraph 17
  128. Explanatory note