ABOUT FRIENDLY SOCIETIES
Friendly societies offer financial products for events which take place during the course of people’s lives.
Products offered by friendly societies include investment bonds, scholarship plans, funeral bonds and risk insurance.
Friendly societies are licensed financial institutions which are prudentially regulated by the Australian Prudential Regulation Authority (APRA) and the Life Insurance Act 1995. Friendly societies products are also subject to regulation by the Australian Securities and Investments Commission (ASIC). This means friendly societies are held to the same standards as banks.
The majority of friendly societies are managed for the benefit of members, not shareholders. This is because most friendly societies operate under a unique “benefit fund” structure, where profits made by friendly societies are put back into developing better products and services for members of friendly societies. This clearly distinguishes most friendly societies from larger shareholder corporations.
Friendly societies are committed to upholding core principles of mutual self-help, support and co-operation.