Citation, commencement and interpretation

1.-(1) These Regulations may be cited as the Financial Services Act 1986(Restriction of Right of Action) (Friendly Societies) Regulations 1991and shall come into force on1st April 1991.

(2) In these Regulations"the Act" means the Financial Services Act 1986.

Definition of private investor

2. For the purposes of paragraph 22A of Schedule 11 to the Act, theexpression private investor means an individual who is neither anauthorised person under Chapter III nor an exempted person under ChapterIV of Part I of the Act.

Circumstances in which action may be brought at suit of person otherthan private investor

3. The following circumstances are specified for the purposes ofparagraph 22A(1) of Schedule 11 to the Act as being circumstances inwhich action may be brought at the suit of a person other than a privateinvestor-

(a)circumstances in which an individual who is an authorised personunder Chapter III of or an exempted person under Chapter IV of Part I ofthe Act suffers a loss otherwise than in the course of investmentbusiness carried on by him;

(b)circumstances in which there is or has been a contravention of anyprohibition or requirement imposed under Chapter VI of Part I of the Actas it applies by virtue of paragraph 23 of Schedule 11 to the Act;

(c)circumstances in which there is or has been a contravention of anyrequirement imposed under paragraph 24 of Schedule 11 to the Act;

(d)circumstances in which the contravention in question is acontravention of any rule, regulation, condition or requirementprohibiting a person from seeking to make provision excluding orrestricting any duty or liability.

Explanatory Note

(This note is not part of the Regulations)

Paragraph 22A of Schedule 11 to the Financial Services Act 1986 wasinserted into the Act by section 193 of the Companies Act 1989 in orderto restrict in general to a private investor the right of a person whocould bring an action in relation to an investment in a friendly societyunder paragraph 22 of Schedule 11 to the Financial Services Act 1986.

Paragraph 22A of Schedule 11 to the Financial Services Act 1986 givesthe Chief Registrar power to define the expression"private investor" for this purpose. Regulation 2 defines a private investor as aninvestor who is neither an"authorised person" under Chapter III, nor an"exempted person" under Chapter IV of Part I of the Act.

Paragraph 22A also gives the Chief Registrar power to specifycircumstances in which a person other than a private investor can bringan action under paragraph 22 in relation to an investment in a friendlysociety. Regulation 3 specifies four such circumstances.