(1) Subject to subsections (2) and (3) below, a friendly society shall not carry on in the United Kingdom any insurance business or non-insurance business unless it is authorised by the Commission to do so.
(2) A friendly society which -
(a) carried on, before the commencement of this section -
(i) insurance business of any description that did not require to be authorised under the 1987 Regulations; or
(ii) non-insurance business of any description; and
(b) is not authorised by the Commission to carry on business of that description after that commencement,
may carry on without authorisation business of that description consisting of the carrying out of contracts effected by the society before that commencement.
(3) A friendly society may without authorisation effect an insurance contract, or a contract for non-insurance benefits, in pursuance of a term in a subsisting contract which the society may, by virtue of subsection (2) above, carry out without authorisation.