Regulators announce plans to support growth of mutuals sector

Overview

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) announced initiatives to support the mutuals sector, aiming to double its size. Key measures include a new development unit and streamlined application processes.

Key Insights

• New Development Unit: The FCA launched a Mutual Societies Development Unit to assist mutuals with policy navigation and growth.
  • Evidence: FCA announcement, 2025-12-05.
  • Verifiable: Yes.
• Regulatory Review: The PRA and FCA will review credit union regulations to implement risk-based requirements for larger firms.
  • Evidence: Joint report by PRA and FCA.
  • Verifiable: Yes.
• Application Process: Application times for new societies will be reduced from 15 to 10 days.
  • Evidence: FCA statement.
  • Verifiable: Yes.
• Sector Size: The mutuals sector includes 93 insurance firms, 42 building societies, and 350 credit unions, with over £223bn in assets.
  • Evidence: FCA report.
  • Verifiable: Yes.

Why It Matters

This initiative is significant for the financial services sector, particularly impacting credit unions and building societies. It aims to enhance financial inclusion and community support.

Actionable Implications

• Credit unions and building societies should prepare for regulatory changes and potential growth opportunities.
• Financial professionals should monitor the development of the Mutual Societies Development Unit for new insights and support.
• Regulators and policymakers should consider similar initiatives to support other financial sectors.