AFM welcomes the Law Commission consultation on the long-overdue reform of Friendly Societies legislation
The Association of Financial Mutuals (AFM) welcomes the publication today of the Law Commission’s consultation, a key part of its review of the legal framework for Friendly Societies.
The AFM has been campaigning for years for a comprehensive reform of Friendly Societies legislation, to modernise the legal and regulatory framework 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 better outcomes.
Responding to the publication of the consultation paper, Andrew Whyte, AFM Chief Executive, said:
“The most recent Friendly Societies Act was more than 30 years ago, and the world has changed beyond recognition since then. So, reviewing the legal framework was long-overdue. The Law Commission’s consultation represents a key moment in our long-standing campaign for reform.
“The consultation paper is a comprehensive and thorough document which provides the basis for an important and much-needed public debate. It addresses a wide range of issues which have constrained the sector and hampered its growth, taking in both technical and legal points and more substantial and strategic policy issues, like access to external capital and restrictions on business activities.
“The Government has set an ambitious target to double the size of the mutual sector and developing a modern, relevant and proportionate legal and regulatory framework to enable Friendly Societies and other mutual insurers to continue to thrive and grow will play a crucial part in achieving that ambition.
“AFM and our members look forward to continuing to engage with the Law Commission throughout the consultation period and beyond to achieve that much needed reform.”
– Ends –
For more information contact:
Andrew Whyte, Chief Executive
07703 107613
andrew@financialmutuals.org
Notes to Editors
1. The Association of Financial Mutuals is the trade body that represents mutual and not-for-profit insurers, friendly societies and other financial mutuals across the UK. A financial mutual is an organisation that supplies financial services products, and which is owned by its customers, or members. That means there are no shareholders to pay dividends to or account to, and a mutual can concentrate entirely on delivering products and services that best meet the needs of its customers. www.financialmutuals.org
2. The Law Commission Consultation Paper and other explanatory and supporting material is available on the Commission’s website: Friendly societies – Law Commission