HL Deb 11 May 1987 vol 487 cc510-1

9.15 p.m.

Lord Lucas of Chilworth

My Lords, I beg to move that the Financial Services (Transfer of Functions Relating to Friendly Societies) Order 1987 be approved. At the same time, perhaps I may speak to the Financial Services (Transfer of Functions Relating to Friendly Societies) Order (Northern Ireland) 1987.

Both orders concern friendly societies. They transfer to the Securities and Investments Board certain powers of the Chief Registrar of Friendly Societies and the Registrar of Friendly Societies for Northern Ireland under Schedule 11 to the Act. These powers provide for the regulation of the investment business of friendly societies and are broadly analogous to the powers of the Secretary of State under the Act which are transferred to the SIB in the delegation order which we have just discussed.

The Secretary of State and registrars are satisfied that the conditions and requirements set out in Schedule 11 for a transfer of powers to the SIB are met. The issues raised by these conditions and requirements are the same as we have just debated in the delegation order. I commend these two further orders to your Lordships.

Moved, That the draft order laid before the House on 27th April be approved [18th Report from the Joint Committee].—(Lord Lucas of Chilworth.)

Lord Williams of Elvel

My Lords, I am grateful to the noble Lord for his explanation of the orders. I would make only three small points, which were made by the friendly societies to the Director General of Fair Trading when he was studying these orders. First, there is a problem with the cost of meeting some of the SIB requirements which may be disproportionately heavy for small societies. Secondly, there are societies with membership limited to particular trades and professions whose voluntary representatives may face particular problems in meeting the standards of advice required. Thirdly, there are commercial societies with a limited product range the sale of whose products would be limited by the reduction in the number of independent intermediaries. I put those points on the record for the noble Lord because they were made to the Director General of Fair Trading; otherwise, we have no problem with the order.

On Question, Motion agreed to.