Law commission consultation reviewing the Friendly Societies Act 1974 and 1992

Closes 11 Jun 2025

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Chapter 3: Registration and rules of a friendly society

Consultation Question 2: We ask consultees whether a power to cancel the registration of an incorporated friendly society for wilfully violating a provision of the 1992 Act (after notice by the FCA to the friendly society) should be given to the FCA.
Consultation Question 3: We seek consultees’ views on the following.

(1) Whether registered societies (that is, societies registered under the 1974 Act which are not friendly societies) should be required to re-register under the Co-operative and Community Benefit Societies Act 2014 so as to benefit from a more modern legal framework.

(2) Whether the existing five-step process is fit for purpose as a way of converting into a society registered under the Co-operative and Community Benefit Societies Act 2014.

(3) Whether it would be reasonable to require registered societies to re-register under the Co-operative and Community Benefit Societies Act 2014 within three years.

(4) Whether the 1974 Act should be repealed.

Consultation Question 4:
Consultation Question 5:

Assuming that the 1974 Act is retained, we provisionally propose that:

  1. officers of a friendly society (both registered and incorporated) and other societies registered under the 1974 Act should be listed on the Mutuals Public Register; and
  2. a society should notify the registering authority (the FCA) of any changes concerning its officers within 14 days.

Do consultees agree?

Consultation Question 6: We provisionally propose to remove the requirement for a special resolution before a friendly society can do any of the following (see below). Do consultees agree?
Consultation Question 7: We provisionally propose that friendly societies should not be required to provide for forfeiture in their rules. Do consultees agree?
Consultation Question 8:

We provisionally propose that friendly societies should not be required to make provision specifically for arbitration-based dispute resolution. They would still be required to make provision for dispute resolution in their rules. Do consultees agree?

Consultation Question 9: We provisionally propose that the following three new items (see below) should be added to the list of mandatory items which friendly societies’ rules should address. Do consultees agree with each of these items?

(1) Conflicts of interest. In particular, we provisionally propose that a friendly society’s rules must address how the society proposes to address situations in which the interests of a committee member conflict or may conflict with the interests of the society, and situations in which a committee member has an interest in a proposed or existing transaction with the society.

(2) Delegation of committee of management powers. In particular, we provisionally propose that a friendly society’s rules must make provision for the manner in which the committee of management may delegate their powers.

(3) Communication with members. In particular, we provisionally propose that a friendly society’s rules must address the matter of how the society will communicate with its members.

Consultation Question 10: We provisionally propose that the list of matters to be covered in the rules of friendly societies should be updated rather than introducing model rules. Do consultees agree?
Consultation Question 11:
Consultation Question 12: We invite consultees’ views on whether they have any concerns regarding a friendly society’s ability to alter or amend its rules (relevant to benefit terms or otherwise).
Consultation Question 13: We invite consultees’ views on whether the regulators’ investigatory powers under the 1992 Act should be retained.
Consultation Question 14: We ask consultees whether friendly societies not undertaking regulated activities should be required to re-register under the Co-operative and Community Benefit Societies Act 2014 or convert to a company, or whether they should continue to be provided for in the 1992 Act.