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The Law Commission has published a consultation paper on friendly societies as part of a review of the current law in this area. |
In a press release they stated: “The current law governing friendly societies is fragmented, outdated, and in need of modernisation. The last major update was in 1992. Friendly society law has not kept pace with developments in related areas such as company law and financial services regulation.” Commenting on the announcement, Cara Spinks, Head of Life & Health at leading independent consultancy Broadstone, said: "The Law Commission’s consultation on modernising the legal framework for friendly societies is a crucial step toward strengthening this vital sector. “Friendly societies provide affordable, customer-focused financial services that drive financial inclusion and support underserved communities. Moreover, we’ve seen first-hand the significant contribution friendly societies and the broader mutual sector make to public health, saving nearly £1bn annually for the NHS, welfare state, and employers through health protection policies. “In tandem with the government’s pledge to double the size of the co-operative and mutual sector, this review of issues around areas such as business transfers, legacy assets, demutualisation and communication will help societies operate more efficiently and adapt to the evolving needs of their members. “Moreover, allowing societies to raise capital in new ways and expand their business activities could help to fuel sustainable growth while maintaining their mutual ethos.” https://lawcom.gov.uk/news/law-commission-seeks-views-on-the-law-relating-to-friendly-societies/ |
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