# The Friendly Societies (Insurance Business) Regulations 1994, Regulation 36: Provision for adverse changes


(1) A society which has or may have (following the exercise of any right by a third party) an obligation under a derivative contract or a contract to which regulation 23(8) applies shall make such provision as shall be sufficient, on prudent assumptions, to allow for the effect of possible adverse changes in—
(a) the current value of the assets or indices of assets to which that contract relates; and
(b) the current value of any assets held by the society,
on the ability of the society to meet its obligations under that contract.
(2) For the purposes of paragraph (1) above, a society shall have regard to—
(a) past volatility in the value of such assets or indices of assets (and in the value of assets or indices of a similar nature); and
(b) the possibility of adverse changes in the volatility of the value of such assets or indices in the future.

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Source: https://www.legislation.gov.uk/uksi/1994/1981/regulation/36 (the official version)
Page: https://openlegislation.uk/friendly-societies-insurance-business-regulations-1994/regulation-36
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.