Hi and thanks for the replies fellas.
Yes its part 9 in the diagram. The filter bolt is long enough to pass through the cooler plate, and the filter is kept against the washer and spring when it comes into contact with the cooler plate even before threading.
If i remember correctly xs750/850 had a threaded fastener that threaded onto the bolt , keeping filter ,washer and spring in contact before mounting the lot to the crankcase. Is this a similar fastener? I get the impression its just a collar with no internal threads. I can't see the point in it which bugs me !
I'm wondering is it a flow restrictor /seperator?