The Prudential Regulation Authority has launched a consultation on changes to Chapter 4 of its statement of policy on insurance business transfers to give insurers a clearer framework for friendly society amalgamations and transfers under Part VIII of the Friendly Societies Act 1992. The proposals are intended to codify and expand the PRA’s existing supervisory approach rather than introduce material new requirements, with a stronger focus on the sequence of steps, the information firms should provide, and how the PRA may use key statutory discretions. The consultation is relevant to UK insurance and reinsurance firms and groups, including firms outside Solvency UK that are involved in transfers from a friendly society or amalgamations with one. The proposed changes would set out a five-stage process covering preparation, analysis, member engagement, formal application and confirmation, while preserving flexibility for firms to depart from that sequence where appropriate. They would also clarify that non-friendly society transferees should follow their own rules or governance framework, and that beginning a Part VIII process does not displace ongoing prudential obligations such as solvent exit planning. On substance, the PRA would explain in more detail how it assesses whether a transaction is in members’ interests, what actuarial and supporting analysis should accompany an Instrument of Transfer, when it may dispense with a transferee member vote, and when it may require an independent actuary’s report, which would generally be less likely for transfers involving Category 4 firms. The consultation also proposes clearer expectations for member communications and conflict disclosures, a normal minimum six-week period for representations after public notice, a Representations Hearing no fewer than two days later, scope for oral updates at that hearing, and updated materials at least eight weeks before Confirmation Assessment Meeting(s). The PRA expects the resulting changes to take effect when it publishes a subsequent policy statement, which it expects before April 2027.
Prudential Regulation Authority2026-07-22
United Kingdom Prudential Regulation Authority consults on clearer friendly society transfer guidance, including voting dispensations and hearing timelines
The Prudential Regulation Authority is consulting on revised guidance for friendly society amalgamations and transfers under Part VIII of the Friendly Societies Act 1992. The proposals would formalise and expand the PRA’s current approach on process sequencing, member votes, actuarial evidence, representations and confirmation timelines, while largely avoiding new substantive requirements. The PRA expects to issue a policy statement before April 2027.