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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Financial Services Act 1986 (Transfer of Functions Relating to Friendly Societies) (Transitional Provisions) Order 1987 No. 2069 URL: http://www.bailii.org/uk/legis/num_reg/1987/uksi_19872069_en.html |
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Statutory Instruments
FINANCIAL SERVICES
Made
27th November 1987
Laid before Parliament
30th November 1987
Coming into force
1st January 1988
The Chief Registrar of Friendly Societies, in exercise of the powers conferred on him by section 118(2) of the Financial Services Act 1986(1), as it has effect by virtue of paragraph 31 of Schedule 11 to that Act, hereby makes the following Order:
1. This Order may be cited as the Financial Services Act 1986 (Transfer of Functions Relating to Friendly Societies) (Transitional Provisions) Order 1987 and shall come into force on 1st January 1988.
2. This Order shall have effect in relation to the function of making or revoking a recognition order in respect of a self-regulating organisation for friendly societies exercisable by a transferee body (in this Order referred to as "recognition functions").
3. In relation to the exercise of recognition functions at any time before 3rd October 1988, the requirement in paragraph 3(1) of Schedule 2 to the Financial Services Act 1986 (as it has effect by virtue of paragraph 4 of Schedule 11 to that Act) that rules afford to investors protection at least equivalent to that afforded by rules and regulations under paragraphs 14 to 22 of Schedule 11 to that Act shall be modified as follows, that is to say that the requirement shall not be treated as unsatisfied by reason only of the fact that a contravention of the rules is not actionable at the suit of a person who suffers loss as a result of the contravention.
J. M. Bridgeman
Chief Registrar of Friendly Societies
27th November 1987
(This note is not part of the Order)
This Order makes a transitional provision in connection with the transfer of most of the Chief Registrar's functions under the Financial Services Act 1986 ("the Act") to the Securities and Investments Board Limited ("SIB"): that transfer was made by the Financial Services Act 1986 (Transfer of Functions Relating to Friendly Societies) Order 1987 (S.I. 1987/925).
Under paragraph 3(1) of Schedule 2 to the Act when SIB considers an application for recognition by a self-regulating organisation for friendly societies, it has to apply to that organisation's rules a test of equivalence to its own rules and regulations, in terms of investor protection. This Order provides that for a transitional period (i.e. before 3rd October 1988), the equivalence requirement shall not be treated as unsatisfied by reason only of the fact that a contravention of the rules of the organisation is not actionable by a person who has suffered loss as a result of that contravention. This complements articles 3 and 4 of the Financial Services Act 1986 (Commencement) (No. 6) Order 1987 (S.I. 1987/1997.) which provide that paragraph 22(4)(d) of Schedule 11 to the Act should not come into force until 3 October 1988: that paragraph provides that a contravention of rules by a member of a self-regulating organisation for friendly societies shall be actionable by a person who has suffered loss as a result.
