Financial Conduct Authority and Prudential Regulation Authority launch mutuals growth package including new FCA Mutual Societies Development Unit and credit union rule review

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have published a joint package of initiatives aimed at supporting growth across the UK mutuals sector, centred on a new FCA Mutual Societies Development Unit, faster mutual society registrations and a joint review of mutual credit union regulation. The FCA also issued a separate report in its role as registering authority assessing the mutual societies sectors. The Mutual Societies Development Unit will act as a central hub of expertise to help mutuals navigate policy and legislative changes and support initiatives such as co-operative networks. The regulators’ review of mutual credit union regulations will consider more risk-based capital requirements for larger, more complex firms alongside greater proportionality for smaller credit unions. Operational changes include FCA free pre-application support for firms setting up as a mutual society or changing business models, and a reduction in registration application times from 15 to 10 working days via the FCA’s Mutuals Society Portal. The PRA also confirmed the Building Societies Sourcebook has been removed from the PRA Rulebook with immediate effect, alongside new PRA guidance on Part VIII transfers for smaller mutual insurers and plans for the PRA and FCA to open discussions with mutual building societies on preparing for mergers and acquisitions.