A Friendly Society is incorporated under the Friendly Societies Act 1974 or under the Friendly Societies Act 1992 or any subsequent act replacing or amending these acts.

Friendly Societies are voluntary mutual organisations whose main purpose is to financially assist their members, or their members’ families, during sickness, unemployment or retirement and to provide life assurance policies.

As of December 1st 2001 the Financial Services Authority (FSA) took over the functions of the Central Office of the Registry of Friendly Societies and those of the Assistant Registrar for Scotland.

It remains to be seen if this was a good idea or not as Friendly Societies have existed for several centuries with little or no regulation. Whereas the FSA have a less than perfect (or even adequate) record in financial regulation.

Category: Guide to City Jargon

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