HISTORIC PRESS RELEASE : Extending Powers of Friendly Societies [May 1999]
The press release issued by HM Treasury on 28 May 1999.
Measures to give incorporated friendly societies greater flexibility in extending the range of permitted services available to their members were announced by the Economic Secretary Patricia Hewitt today.
These proposed measures will allow friendly societies :
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own subsidiaries which may themselves, in turn, have a subsidiary or more than one level of subsidiary;
- to own subsidiaries formed in non-EC countries.
Commenting on the proposals, Ms Hewitt said :
“Friendly societies carry out invaluable work by encouraging saving, especially by those of modest means. The movement has asked for the restrictions on subsidiaries to be lifted. The Government has listened and acted. These changes will enable societies to more easily set up or acquire subsidiaries, providing a wider range of services for their members.”
The proposals are outlined in a consultation document, “Proposed Amendments To The Friendly Societies Act 1992”. The proposed changes can be made through a Deregulation Order under the Deregulation and Contracting Out Act 1994. The consultation period ends on 30 July 1999.
