The Association of Financial Mutuals (AFM) has welcomed the Law Commission’s upcoming review of Friendly Societies Act 1992.
The AFM has campaigned for years for a comprehensive reform of Friendly Societies legislation.
It said that the review was an important first step in modernising the legal and regulatory framework for Friendly Societies, so that they can compete on more equal terms with other insurance companies and continue to serve the best interests of their members and to deliver superior outcomes.
The Government committed to asking the Law Commission to review the Friendly Societies Act during Parliamentary debates about the Co-operatives, Mutuals and Friendly Societies Bill, a Private Members Bill introduced by Sir Mark Hendrick MP last year.
The Bill highlighted the commitment across all parties for the mutual and cooperative sector; it was given a third Reading and completed its progress through the House of Lords on 16th June and is now awaiting Royal Assent.
Andrew Whyte, chief executive at AFM, said: “The Law Commission review of the Friendly Societies Act is long-overdue.
“The world has changed beyond recognition since the Act was introduced more than 30 years ago, and this has contributed to a sharp decline in the number of active societies.
“Taken together with the successful passage of the Co-operatives, Mutuals and Friendly Societies Bill through the House of Lords this represents a key moment in our long-standing campaign for reform.
“But it is only a start, and we look forward to working with the Law Commission to develop a modern, relevant and proportionate legal and regulatory framework which will enable Friendly Societies to continue to thrive and grow.”
