Friendlies are coming in to their own, says AFS president

At last week’s annual general meeting, Andrew Townsley said that not only had friendly societies proven a haven for worried consumers, they had also increased their influence on the FSA and Treasury.

He said: “This year, the association has further increased its influence with the regulator and the Treasury as is shown by our participation in the child trust fund initiative, the thematic review and the Savings Gateway. Friendly societies have been instrumental in providing the platform for the child trust funds, currently operating more than 50 per cent of trust accounts”.

Speaking about the association’s interaction with the Treasury, Mr Townsley said the legislation sub-committee had responded to consultation papers seeking to maintain or improve the environment in which such societies operate.

He said: “There have been two significant pieces of work by the FSA, those being the Thematic Review followed by work on treating customers fairly.

“I think the results of both of these shows societies have made important strides in the last few years to improve governance and transparency while retaining their focus on member interests.

“There is, however, no room for complacency and we must continue to demonstrate a continuing commitment to best practice in all our areas of operation.”

However, Mr Townsley did express disappointment with the Treasury’s decision to once again turn down a request for an increase to the tax-exempt savings limit.

He said: “This is a shame, but we did, however, run a successful campaign with MPs to raise the profile of the issues. We have also made representation around the Saving Gateway seeking to develop a situation with the Treasury which would enable Friendly societies to participate”.

Peter Howcroft, chief executive of Oddfellows Friendly Society, has been elected president of the association until October 2009.

The AFS represents the friendly society movement, and has 48 members. Between them, these organisations manage the savings and investments of nearly 6m people, and have total asses under management of more than £17.5bn.