The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have published a joint landscape report on UK financial mutuals that are dual regulated under the Financial Services and Markets Act 2000, focusing on building societies, credit unions and mutual insurers. The report sets out how the regulators plan to support the sector’s long-term sustainable growth and competitiveness through proportionate, risk-based regulation and supervision, targeted initiatives and deeper sector engagement. The report highlights steps already taken to reduce regulatory burden, including the PRA setting minimum fees to zero for small non-directive friendly societies and small and medium-sized credit unions, the PRA’s Strong and Simple regime for Small Domestic Deposit Takers, and Solvency UK reforms that removed almost 50 reporting templates and expanded access to the simpler Non-Solvency UK regime. It also points to mutual-specific actions such as the PRA’s withdrawal of supervisory expectations that applied specifically to building societies, the launch of the joint PRA-FCA Scale-up Unit to support eligible high-growth firms, and the PRA’s consultation to clarify and enable credit union investment in Credit Union Service Organisations with prudential guardrails. Next steps flagged include publication of the final PRA policy on credit union service organisations in February 2026, a comprehensive review of the longer-term evolution of the credit union regulatory framework as the sector grows and becomes more complex, and PRA guidance intended to clarify the Part VII transfer process for mutual insurers to reduce barriers to consolidation. The report also notes timelines for related workstreams, including the FCA’s planned policy statements in December 2025 on targeted support and on simplifying insurance rules, the PRA’s Preparations for Solvent Exit Instrument coming into force on 30 June 2026 for insurers, and a simplified capital regime for Small Domestic Deposit Takers taking effect on 1 January 2027.
Prudential Regulation Authority 2025-12-05
Prudential Regulation Authority and Financial Conduct Authority publish mutuals landscape report and outline further proportionality measures for mutuals
The Prudential Regulation Authority and Financial Conduct Authority have issued a joint landscape report on dual-regulated UK financial mutuals, outlining plans to support long-term sustainable growth and competitiveness through proportionate, risk-based regulation, targeted initiatives and deeper sector engagement. The report details burden-reduction measures, including zero minimum fees for smaller firms, the Strong and Simple regime for Small Domestic Deposit Takers, Solvency UK reporting simplifications and mutual-specific actions on building societies, high-growth firms and credit union investments. It also flags forthcoming policies and guidance on credit union service organisations, the longer-term credit union framework, Part VII transfers for mutual insurers, insurer solvent exit preparations and a simplified capital regime.