The Association of Financial Mutuals (AFM) has welcomed the Law Commission’s consultation on reforming the legislation for Friendly Societies.
The AFM has campaigned for years for a comprehensive reform of Friendly Societies legislation.
Andrew Whyte (pictured), chief executive at AFM, said: “The most recent Friendly Societies Act was more than 30 years ago, and the world has changed beyond recognition since then. So, reviewing the legal framework was long overdue.
“The Law Commission’s consultation represents a key moment in our long-standing campaign for reform.
“The consultation paper is a comprehensive and thorough document which provides the basis for an important and much-needed public debate.”
Whyte added: “It addresses a wide range of issues which have constrained the sector and hampered its growth, taking in both technical and legal points and more substantial and strategic policy issues, like access to external capital and restrictions on business activities.”
“The Government has set an ambitious target to double the size of the mutual sector and developing a modern, relevant, and proportionate legal and regulatory framework to enable Friendly Societies and other mutual insurers to continue to thrive and grow will play a crucial part in achieving that ambition.”
He said: “AFM and our members look forward to continuing to engage with the Law Commission throughout the consultation period and beyond to achieve that much needed reform.”
