UK Offence Report

Actuary’s report as to margin of solvency

regulation 26(2)(a) of The Friendly Societies Act 1992 (Amendment) Regulations 1994

This offence was read from the text as made, and no revised version was available, so a later revocation could not be ruled out. Check the current text at legislation.gov.uk.

What the provision says

a is guilty of an offence under subsection (6) of that section; but

Text as made, from legislation.gov.uk. © Crown copyright, reused under the Open Government Licence v3.0. This is the text as originally made; later amendments are not shown here.

Who it binds, and what has to be proved

Binds
a person
Conduct
breaching the provision
Fault element
Strict liability
Burden of proof
No statutory defence — prosecution proves everything

The prosecution must prove that the conduct happened. This is a strict liability offence as drafted: the provision uses no word of intention, knowledge, recklessness or negligence, so there is no need to show that a person meant to do it, knew about it, or was careless.

Intention, knowledge and carelessness are irrelevant to guilt. They may still matter a great deal to sentence.

The provision states no defence, so the prosecution bears the burden on every element of the offence.

Classifier’s reasoning: no word of intention, knowledge, recklessness or negligence in the offence or its provision.

What would breach regulation 26(2)(a)?

These are illustrations, not law. They are generated from the provision’s own words to show the shape of the offence. Whether any particular conduct is caught depends on the full text, on any amendment since, and on the facts.

  1. Doing what the provision prohibits, or failing to do what it requires under the Friendly Societies Act 1992 (Amendment) Regulations 1994.

Penalty

Mode of trial
Summary only — tried in a magistrates’ court
Maximum fine
Not determined
Maximum prison (summary)
Not determined

No penalty was determined from this instrument. It may be in the enabling Act, or in a general penalties provision this pass did not connect to the offence. Absence of a figure here is not evidence that the offence carries no penalty.

Sentencing

Offences of this kind are usually sentenced under the guidelines below. This is a mapping by subject, not a finding about this provision, and the links go to a search of the Sentencing Council’s own site.

Prosecution figures

No published per-offence figure was found for this provision, and it could not be matched to a Ministry of Justice offence code. Offences created by statutory instrument very largely do not have one. Absence of a figure is not evidence that the offence is unused.

Status and lifecycle

Current status
Status not determined
Made
21 July 1994
In force from
1 September 1994
Extent
Not stated

How this was established: read from the text as made; no revised version available, so later revocation could not be ruled out.

What the instrument is for

(This note is not part of the Regulations) — the explanatory note published with the instrument, © Crown copyright.

These Regulations, which come into force on 1st September 1994, make amendments to the Friendly Societies Act 1992 (``the 1992 Act'') and revoke regulations 2(2), 4 and 5 of the Friendly Societies (Amendment) Regulations 1993 (S.I. 1993/2519). The Regulations, which apply to societies to which section 37(2) or (3) of the 1992 Act applies (``Directive societies''), give effect to the relevant provisions of– a the Third Life Directive (that is, Council Directive 92/96/EEC on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (O.J. No. L360, 9.12.92, p.1); and b the Third Non–Life Directive (that is, Council Directive 92/49/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/ 357/EEC (O.J. No. L228, 11.8.92, p.1)). The Regulations also give further effect to the relevant provisions of the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (O.J. L1, 3.1.94, p.3) as adjusted by the Protocol signed at Brussels on 17th March 1992 (O.J. L1, 3.1.94, p.572) (“the EEA Agreement”). Part I of the Regulations makes provision for the citation, commencement and extent of the Regulations and contains interpretation provisions. Part II amends section 1 of the 1992 Act to ensure that the Friendly Societies Commission (“the Commission”), which is a statutory body, has all the functions (and powers) required under the Life and Non–Life Directives. Part III makes changes to the authorisation process. Regulation 4 ensures that the authorisation granted to a Directive society is valid for the whole of the UK. (Any restriction on the authorisation of a Directive society therefore ceases to have effect.) Any Directive society will, by virtue of its authorisation under section 32 of the 1992 Act, be able to establish a branch or provide insurance in another member State without requiring further authorisation in the host member State. Regulation 5 amends section 34 of the 1992 Act (grant of unconditional or conditional authorisation) to ensure the Commission cannot grant authorisation unless, inter alia, it is satisfied that any controller of a Directive society is a fit and proper person to be such a controller. A definition of controller is set out in section 55A of the 1992 Act inserted by regulation 14. Regulations 6 and 7 make minor amendments to the Commission’s powers to withdraw authorisation to ensure compliance with the Directives. Part IV makes changes to Part V of the 1992 Act. Regulation 9 inserts section 49A requiring a Directive society to secure the adequacy of assets covering the liabilities of its insurance business. Regulation 10 inserts section 49B requiring such a society to ensure the adequacy of premiums payable under its long term insurance contracts. Minor changes are made to section 48 (margins of solvency), section 50 (criteria of prudent management), section 52 (application to court) to ensure compliance with the Directives and the EEA Agreement. Regulation 13 inserts section 52A which gives the Commission power to obtain, on specified grounds, an injunction (or, in Scotland, an interdict) to prohibit a Directive society from disposing of assets to the value of the liabilities of its business in the European Community. Regulation 14 inserts section 55A and Schedule 13A which provide for supervision of persons who propose to become, become or cease to become controllers of Directive societies. Regulation 15 substitutes a new provision for section 57 of the 1992 Act which with new Schedule 13B sets out the requirements to be met by a Directive society intending to establish an overseas branch in another member State, or to provide insurance in any member State or EEA State through an establishment in another State. Regulation 15(3) and (4) contain transitional provisions for any Directive society lawfully carrying on business through an overseas branch in another member State or providing insurance in another such State prior to the coming into force of the Regulations — such a society is treated as if it had complied with the new requirements. Regulation 16 substitutes a new provision for section 57A of the 1992 Act which requires the Commission to notify any supervisory authority of another EEA State of any measures it intends to take or has taken in relation to a Directive society in certain circumstances. Regulations 17 to 20 extend the powers of the Commission to obtain information including a power to enter certain premises to obtain information. Regulation 18 ensures that the Commission may not disclose confidential information relating to a Directive society unless it is in accordance with the Third Directives to do so. Part V inserts new sections 67A—67D and Schedule 13C requiring a Directive society to furnish specified information to potential members or members. Regulation 21 inserts section 67A and Schedule 13C requiring a Directive society carrying on insurance business to furnish a potential member with specified information before any contract of long term or general insurance, and to furnish a member with information during the term of contract of long term insurance. Regulation 22 inserts section 67B which requires a Directive society, in certain circumstances, to send a potential member a statutory notice setting out that person’s right to cancel a contract of long term insurance within 14 days. (The form of the statutory notice is set out in regulation 52 of the Friendly Societies (Insurance Business) 1992 Regulations (S.I. 1994/1981.) There are six exemptions from the requirement to send a statutory notice in section 67B(7) — one of these is where the long term business concerned is also investment business within the meaning of the Financial Services Act 1986 (c. 60). Regulations 23 and 24 insert sections 67C and 67D which supplement the member’s right to cancel a contract. Part VI deals with transfers of engagements. Regulations 25 to 28 amend the existing transfer provisions to ensure compliance with the Directives and the EEA Agreement. The main changes are to transfers of engagements concerning members who are resident in another member State or EEA State. Part VII supplements the new provisions by inserting a series of new definitions in the 1992 Act. A review of the cost of compliance with these Regulations has been undertaken and the resulting compliance cost assessment may be purchased from the Secretary, Friendly Societies Commission, 15 Great Marlborough Street, London W1V 2AX.

Read the full note and every offence in this instrument

Other offences in the same instrument

How this was identified as an offence

Everything above rests on the judgement that this provision creates a criminal offence, rather than mentioning one. That judgement is made by rule, from the words of the provision, and this is the rule that made it — with a confidence of 0.92.

Basis
the provision says a person is “guilty of an offence”
Confidence
0.92 of 1.00

A provision that states a penalty for an offence created elsewhere can read very like one that creates an offence, and the rules can mistake the one for the other. If the text quoted above sets a penalty for something made an offence by another provision, treat the classification on this page with that in mind, and read the instrument.

Check the source