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27-521: Shepherds Friendly Society is a UK friendly society and one of the oldest mutual insurers in the world. It is an incorporated society in the United Kingdom within the meaning of the Friendly Societies Act 1992 . It has over 100,000 members. The Industrial Revolution led to major changes in society, with village communities diminishing and new towns and industries springing up. As there

54-538: 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

81-525: A range of savings, protection and insurance plans for its members. 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

108-594: 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

135-627: A sickness and benefits society, Ashton Unity, which was formed in Ashton-under-Lyne , Lancashire on Christmas Day in 1826. It was later renamed as the Loyal Order of Ancient Shepherds , " loyal " referring to the Crown and " shepherds " to the Nativity of Jesus. Its objects were "to relieve the sick, bury the dead, and assist each other in all cases of unavoidable distress, so far as in our power lies, and for

162-541: 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

189-569: 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

216-616: 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 . Mutual savings bank A mutual savings bank is a financial institution chartered by a central or regional government, without capital stock, owned by its members who subscribe to a common fund. From this fund, claims, loans, etc., are paid. Profits after deductions are shared among

243-810: The RNLI in the 1800s, and supported the Red Cross and YMCA in the Second World War. Various similar mutual associations have since amalgamated with it, including the Royal Shepherds Sanctuary Benefit Society which was established in Yorkshire in the early 19th century, and the Ancient Order of Shepherds. Shepherds Friendly Society has changed from a traditional insurance provider to a modern diversified financial services organisation. It offers

270-624: The Ruthwell Presbyterian Church in Dumfriesshire , Scotland . Duncan established a friendly society to create a cooperative depository institution in order to enable his poorest parishioners to hold savings accounts accruing interest for sickness and old-age . Another precursor of modern savings banks were the ideas of Friedrich Wilhelm Raiffeisen that led to rural credit unions and cooperative banks . European voluntary organizations and " friendly societies " provided

297-512: 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

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324-671: The 1980s, several building societies in Australia converted to banks, but were required to demutualize when doing so. These included Advance Bank (formerly NSW Building Society), St. George , Suncorp , Metway Bank, Challenge Bank, Bank of Melbourne and Bendigo Bank . A change in regulation meant that building societies and credit unions were no longer required to demutualize upon converting to banks, and several, including Heritage Bank , have converted since 2011 while retaining their status and structure as mutual organizations. Mutual savings banks were designed to stimulate savings by individuals;

351-702: 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

378-621: 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

405-702: The Salem Savings Bank. In 2020, Eastern Bank demutualized and listed its stock on the New York Stock Exchange . Since the 1970s, when the industry was deregulated, thousands of mutual savings banks have been converted into stock ownership companies , raising more than $ 40 billion. In 2010, only about 600 remained. These conversions have often resulted in large financial rewards for top bank executives. Current mutual saving banks include Dollar Bank , Ridgewood Savings Bank , Middlesex Savings Bank , Liberty Bank , and Marquette Savings Bank . Beginning in

432-419: 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

459-461: The exclusive function of these banks is to protect deposits, make limited, secure investments, and to provide depositors with interest. Unlike commercial banks , savings banks have no stockholders; the entirety of profits beyond the upkeep of the bank belongs to the depositors of the mutual savings bank. Mutual savings banks prioritize security, and as a result, have historically been characteristically conservative in their investments. This conservatism

486-407: The inspiration for their state-incorporated American counterparts. These first savings banks were envisioned as philanthropic endeavors, designed to uplift the poor and working classes. The banks were started by philanthropists who took on the positions of savings bank trustees, managers, and directors as opportunities to teach the working class the virtues of thrift and self-reliance by allowing them

513-407: The members. The institution is intended to provide a safe place for individual members to save and to invest those savings in mortgages , loans , stocks , bonds and other securities and to share in any profits or losses that result. The institution most frequently identified as the first modern savings bank was the " Savings and Friendly Society " organized in 1810 by Rev. Henry Duncan of

540-424: 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

567-493: The promotion of peace and goodwill towards the human race". It later spread across the country, organised into local branches; like other friendly societies such as the Oddfellows , these were known as 'lodges', and officers wore regalia somewhat similar to those of freemasons . By 1914 the membership had grown to 143,000. The Ancient Shepherds raised substantial funds from its members to support charities, presenting two lifeboats to

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594-535: 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

621-572: The security to save their money. The first incorporated US mutual savings bank was the Provident Institution for Savings in Boston. Its 1816 charter was the first government legislation in the world to safeguard savings banks. In 2015, the oldest (and largest) mutual bank in the U.S. was Eastern Bank of Boston, with approximately $ 10 billion in assets. It was chartered in 1818 in Salem, Massachusetts, as

648-507: 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

675-507: 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

702-420: Was no state provision for the poor, mutual aid organisations known as friendly societies were established to help families against hardship brought about by illness or death. Such societies began as locally based groups, whose members contributed a small amount each month so that payouts could be made to those in need, with the rest of the money received either saved or invested. Shepherds Friendly started life as

729-514: 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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