PRA seeks to clarify transfer processes for financial mutuals, aiming to enhance transparency and efficiency in Part VIII transactions.
The Prudential Regulation Authority has launched a consultation on updated guidance for friendly society amalgamations and transfers under Part VIII of the Financial Services and Markets Act. The proposals aim to provide clearer sequencing, decision-making criteria, and waiver conditions for member votes and actuarial reports, addressing feedback from firms and advisers.
Current rules, outlined in Statement of Policy 3/15, lack detailed transparency on the PRA’s expectations. The consultation follows a 2023 Mutuals Landscape Report, which identified the need for clearer guidance to support the sector’s competitiveness. The changes would apply to both friendly societies and other financial mutuals.
The consultation closes on 22 October 2026, with final rules expected to take effect upon publication of the Policy Statement. The PRA emphasized the role of financial mutuals in the UK’s financial services sector and its commitment to their sustainable growth.