Law commission consultation reviewing the Friendly Societies Act 1974 and 1992 - Chapter 6: Demutualisation and asset protection - Ministry of Justice

Chapter 6: Demutualisation and asset protection

Consultation Question 40: We ask the following questions on asset locks.

(1) What is the need for and desirability of introducing asset locks for friendly societies and what are potential benefits and disadvantages of asset locking for friendly societies?

(2) If an asset lock were to be introduced, what might the implications be for friendly societies, especially friendly societies carrying on with-profits business?

(3) For consultee friendly societies who support the introduction of an asset lock, how would the asset lock be defined in the context of their business?

(4) Should an asset lock be introduced for societies other than friendly societies that are registered under the 1974 Act?

(5) What challenges have we not considered in our analysis that would affect friendly societies’ ability to implement an asset lock?

Consultation Question 41: We invite consultees’ views on what other measures could be introduced to protect friendly societies against demutualisation.