What are Friendly Societies?
Australia’s first friendly society was established in NSW in 1830.(2) Friendly Societies are mutual organisations. Traditionally, they offered sickness and accident assurance products through benefit funds. During the 1980’s, they expanded significantly by introducing insurance bond investment products which were tax-advantaged at the time. Although those tax advantages have been removed, single premium bond and annuity products are still a significant business. The FSI reported that approximately $8 billion of assets are under friendly society management.(3) A uniform national scheme governing for the prudential regulation of Friendly Societies was introduced from 1 October 1997. The essence of this regulatory scheme will be continued under the Financial Sector Reform (Amendments and Transitional Provisions) Bill (No.1) 1999 when friendly societies come under the supervision of the Australian Prudential Regulation Authority. What are RSAs? The passage of the Retirement Savings Account
