UK regulators announce plans to support growth of mutuals sector

Written by Adam Cadle

05/12/2025

A raft of new measures designed to support the growth of the mutuals sector have been announced today by UK financial regulators.

They include a review of credit union regulations and the launch of a Mutual Societies Development Unit by the Financial Conduct Authority (FCA).

The proposals form part of a package of initiatives, published in a joint report by the Prudential Regulation Authority (PRA) and FCA.

These include:
• A new FCA Mutual Societies Development Unit that will act as a central hub of expertise and insight helping mutuals navigate policy and legislative changes. It will support initiatives such as co-operative networks that enable mutuals to collaborate, grow and build resilience.
• A PRA and FCA review of mutual credit union regulations, considering more
risk-based requirements for larger, complex firms and proportionality for smaller credit unions.
• Free pre-application support by the FCA for firms setting up as a mutual society, innovating their business models, or seeking guidance applying for targeted support permission.
• A cut in application times for new societies – from 15 to 10 working days, encouraging more society registrations through the FCA’s Mutuals Society Portal.
• Confirmation from the PRA that the Building Societies Sourcebook has been removed from the PRA rulebook with immediate effect.

Sam Woods, CEO of the PRA and deputy governor at the Bank of England, said: “Mutuals are a vital part of our financial system. Today’s report examines how the financial mutuals sector is growing, and what we can do to help it thrive in the period ahead.”

The FCA has also published its own report as registering authority assessing the mutual societies landscape.

Nikhil Rathi, CO of the FCA, said: “The mutuals sector is remarkably diverse and rooted in the communities and members it serves. They support people to buy a home, insure against the worse, increase financial inclusion and bring communities together, whether in the club, pub or on an allotment. We want to help them grow, and our new Development Unit will provide dedicated support. We’re also making it faster for mutuals to start-up.”

Mutuals are owned by their members, typically to serve their owners’ needs and financial mutuals have over 30 million members across the UK. This includes 93 mutual insurance firms, 42 building societies and 350 credit unions.

Related Articles