# The Friendly Societies (Long Term Insurance Business) Regulations 1987, Regulation 4: Restrictions on carrying on business


(1) Subject to regulation 5(5) below, no society to which these Regulations apply shall carry on in the United Kingdom any long term business otherwise than pursuant to and in accordance with an authorisation issued by the Chief Registrar under Regulation 5 or 6 below.
(2) Subject to paragraph (3) below, a society authorised pursuant to these Regulations shall not carry on any commercial activities otherwise than in connection with or for the purposes of its long term business.
(3) If such a society was, on 15th March 1979, carrying on–
(a) insurance business of one or both of the classes specified in Part II of Schedule 1, otherwise than as supplementary business, or
(b) savings operations,
it may continue to carry on such activities, provided that it manages them in accordance with paragraph (4) below.
(4) The assets representing the fund or funds maintained by the society in respect of its long term business shall be applicable only for the purposes of that business, and shall not be transferred so as to be available for other activities of the society except where the transfer is for the purpose of the insurance business referred to in paragraph 3(a) above and is–
(a) by way of reimbursement of expenditure borne by other assets in respect of long term business, or
(b) limited to assets representing the excess of the society’s long term business fund or funds over its liabilities attributable to such business.

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Source: https://www.legislation.gov.uk/uksi/1987/2132/regulation/4 (the official version)
Page: https://openlegislation.uk/friendly-societies-long-term-insurance-business-regulations-1987/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.