A friendly society (sometimes called a benefit society , mutual aid society, benevolent society, fraternal organization or ROSCA ) is a mutual association for the purposes of insurance , pensions, savings or cooperative banking . It is a mutual organization or benefit society composed of a body of people who join together for a common financial or social purpose. Before modern insurance and the welfare state , friendly societies provided financial and social services to individuals, often according to their religious, political, or trade affiliations. These societies are still widespread in many parts of the developing world, where they are referred to as ROSCAs (rotating savings and credit associations), ASCAs (accumulating savings and credit associations), burial societies, chit funds, etc.
25-675: Royal Liver Assurance / ˈ l aɪ v ər / was a friendly society with over 1.7 million members in Ireland and the United Kingdom . Subject to Financial Services Authority (FSA) approval, Royal Liver and its subsidiaries became part of the Royal London Group on 1 July 2011. The Liverpool Lyver Burial Society was founded by a group of working men from Liverpool in the Lyver Inn on 24 July 1850 to "provide for
50-565: A disadvantage. At the time, it was anticipated that several mutuals would merge due to lack of capital. Royal Liver were then approached again by Royal London in February 2010. Talks continued for some time, and the board of Royal Liver agreed the terms of a potential merger in April 2011. The delegates of Royal Liver voted in favour of the merger at the AGM on 12 May 2011. The transfer to Royal London
75-551: A normal regulatory environment was required (similar to companies, health and other business (loan organisations). The 2014 Act also provided that existing societies may not establish a 'loan fund' from the commencement of the Act (July 28, 2014). Friendly societies are registered under either the Friendly Societies Act 1974 or the Friendly Societies Act 1992. There are the following types of society registered under
100-618: A role based on solidarity and democracy without an objective to make profit. The current position of the mutual benefit society in Europe is well described in a report from 2012, commissioned by the European Commission . Healthcare mutuals worldwide are coming together in Association Internationale de la Mutualité , a Brussels-based association of healthcare mutuals. Friendly societies in countries such as
125-612: A wide range of issues and financial services in Ireland. In 2007, Royal London approached Royal Liver about a possible combination of their businesses, but Royal Liver decided to remain as an independent entity. During the 2007–2008 financial crisis , the FSA launched Project Chrysalis , aimed at mutual insurance companies. Companies were asked to hold more capital, and to either stop writing new policies, or justify that continuing selling new business would not put existing policyholders at
150-554: Is also the Registrar for Friendly Societies, Industrial and Provident Societies and Trade Unions). In 2014 the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act, 2014, provided for the cessation of new friendly societies; as a result no new societies may be registered. It was felt that the form of organisation had outlived its usefulness, largely for reasons mentioned above. When
175-575: The Co-operative and Community Benefit Societies Act 2014 , which has renamed these societies as co-operative or community benefit societies. Examples include co-operatives for consumers, workers, agriculture and housing, working men's clubs , Women's Institute markets, allotment societies, mutual investment companies, housing associations and some social enterprises . Many sports clubs are registered under these provisions. Friendly societies, alongside other mutual societies, are registered with
200-746: The Financial Conduct Authority . Until December 2001, the regulator was the Registrar of Friendly Societies, and from then until April 2013 the Financial Services Authority . Friendly Societies Act 1875 The Friendly Societies Act 1875 ( 38 & 39 Vict. c. 60) was an Act of the Parliament of the United Kingdom passed by Benjamin Disraeli 's Conservative government following
225-522: The 1830s and have evolved into member-focused providers of financial services, healthcare, retirement living, aged and home care services, transport, pharmacies and other fraternal services to over 800,000 members. They typically provide savings, investment and insurance products. In Ireland, friendly societies are registered with the Registrar of Friendly Societies under the Friendly Societies Acts 1896–2014 (the Registrar for Companies
250-792: The 19th century e.g. the York Female Friendly Society, founded in 1788 by Faith Gray and Catherine Cappe . Grey and Cappe ran schools for girls and this society was intended to assist them. Another early Female Society was the Wisbech Female Friendly Society instituted on 1 February 1796. In Australia, friendly societies are regulated under the Life Insurance Act 1995 (C'th) and registered with APRA . Friendly societies were first established in Australia by community groups in
275-581: The 20th century, Royal Liver Assurance expanded to cover the whole of Ireland and the UK. Today, Royal Liver Assurance employs around 900 people, has approximately 3.4 million policies in force for 1.7 million members and manages more than £3.7 billion in funds. The Royal Liver Assurance has operated a delegation system since 1886; today, there are about 230 or so elected delegates. The Royal Liver Poetry of Place competition sees schoolchildren write poems about their favourite Liverpool places, which are voted for by
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#1732786863313300-628: The Friendly Societies Act 1974: The activities of these societies varies, but includes: Some friendly societies are still governed by the 1974 act, although no new societies can be registered under that act. Friendly societies registered under the Friendly Societies Act 1992 are incorporated entities and are registered for effecting and carrying out contracts of insurance. Similar organisations were called industrial and provident societies . They are trading businesses or voluntary organisations. Recent legal developments in Great Britain include
325-424: The Registrar every five years which gave details of their financial affairs and in-force business which could be used by the Registrar to evaluate their assets against their liabilities under life assurance , annuity and sickness business. Friendly societies paid de facto old-age pensions in the form of sickness benefit, and the Act defined "old age" as 50 and above. Although a court ruled that "natural decay"
350-593: The Society by 1860. William Field is pictured in the 150-year Commemorate Book put out by the Society. It is believed that one of the pillars of the Royal Liver Building has the family Motto "Fair Field No Favours" on it. William Field died in 1916 while still employed by the Society. It is believed that others of the Field family were also involved with the management of the Society during this time. During
375-493: The United Kingdom were subject to prudential regulation to safeguard the financial interests of their members and secure the benefits promised to them, but the legislation (see for example the Friendly Societies Act 1875 ( 38 & 39 Vict. c. 60)) was separate from that applicable to insurance companies. In other countries friendly societies have no specific legal status, which means that they have to comply to
400-480: The decent interment of deceased members". By 1857 the Society had moved to its fourth head office and had expanded throughout the United Kingdom . By the end of the 1890s a decision was taken to build what would become the Royal Liver Building ; it opened on 19 July 1911. William Field was a managing director of Royal Livers Friendly Society in 1911. His Father, John Field, born 1820 was an agent for
425-424: The minister's staff examined the register, it was found that only three new societies had registered in the previous nine years, as the use of the traditional friendly society types of business had become regulated elsewhere and a 'rump', which on examination are largely public-service types, remain (mainly army, customs, gardaí , and prison officers). Many of the others could expect to cease to trade if additional, or
450-547: The public via the Royal Liver website. At the time of its acquisition by the Royal London Group in 2011 The Royal Liver Group consisted of: RLAL had two subsidiary companies: Royal Liver previously had a financial advisor company called Park Row , however this was wound up following an investigation by the FSA. Although owned by Royal Liver, Citadel is an independent company offering financial advice on
475-637: The publication of the Royal Commission on Friendly Societies ' Final Report. It was one of the Friendly Societies Acts 1875 to 1895 . The Act encouraged friendly societies to register with the Registrar of Friendly Societies by granting them the legal right to own land and property in the name of their trustees and the power to take out legal proceedings, in return for registration. Registered societies were subject to regulation: for example they were required to submit returns to
500-540: The same rules and regulations as for-profit insurance companies. In some cases, especially in America, members typically paid a regular membership fee and went to lodge meetings to take part in ceremonies. If members became sick, they would receive an allowance to help them meet their financial obligations. The society might have a doctor whom the member could consult for free. Members of the lodge would visit to provide emotional and other support (and possibly to verify that
525-507: The sick member was not malingering ). When a member died, the funeral would be paid for and the members of the lodge might attend in ceremonial dress. Often, there was some money left over for the next of kin. Friendly societies might also organize social functions such as dances, and some had sports teams for members. They occasionally became involved in political issues that were of interest to their members. Others were purely financial, with little or no social side, from their foundation—this
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#1732786863313550-487: Was completed on 1 July 2011. Friendly society Before the development of large-scale government and employer health insurance and other financial services, friendly societies played an important part in many people's lives. Many of these societies still exist. In some countries, some of them developed into large mutually-run financial institutions, typically insurance companies, and lost any social and ceremonial aspect they may have had; in others they continue to have
575-517: Was more typical in Britain. The first mutual savings bank , founded in Scotland in 1810, was called the "Savings and Friendly Society". Credit unions and other types of organization are modern equivalents. Friendly society brasses were the emblems of village friendly societies or clubs common in the west of England between the late 18th and early 20th centuries. The use of brasses as emblems
600-421: Was not "sickness" the majority of friendly societies did not accept this ruling as they were in competition with each other, and wanted to continue paying pensions to attract new members. The Act allowed friendly societies considerable self-management "but insured the adoption of sound rules, effective audit, and rates of payment sufficient to maintain solvency. It established the friendly societies, and with them
625-524: Was particularly prevalent in Somerset and the surrounding counties. The Museum of English Rural Life has a collection of over 900 Friendly Society Brasses aka poleheads. The design of the brasses was sometimes conventional or sometimes represented an interest of the club such as the inn in which the meetings were held. Female friendly societies became a common form of friendly society in England during
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