(1) This section applies where a friendly society ("the transferor") proposes to transfer any of its engagements under section 86 above to another friendly society ("the transferee").

(2) Where -

(a) the fulfilment of any of the engagements to be transferred will constitute the carrying on of insurance business in the United Kingdom or Gibraltar, and

(b) the transferee will, after taking the proposed transfer into account, be required by rules made by the appropriate authority under Part 9A of the Financial Services and Markets Act 2000 to maintain the margin of solvency required by such rules,

the transferee shall furnish the appropriate authority with a report by the appropriate actuary as to whether it will immediately after the proposed transfer, possess that margin of solvency.

(3) Where -

(a) the fulfilment of any of the engagements will constitute the carrying on of long-term business, and

(b) a report is not required to be furnished under subsection (2) above,