A series of new measures aimed at accelerating the growth of the UK mutuals sector has been announced by the financial regulators.

Financial regulators have unveiled a broad package of initiatives designed to strengthen and expand the mutuals sector. These measures include a full review of credit union regulations and the creation of a new Mutual Societies Development Unit within the FCA.

The proposals appear in a joint report published by the PRA and FCA and include several key actions:

1. Launch of a Dedicated FCA Mutual Societies Development Unit:
This new unit will serve as a central hub of expertise, helping mutual societies navigate evolving policy and legislative changes. It will also support co-operative networks that enable mutuals to collaborate, scale and improve long-term resilience.

2. PRA and FCA Review of Credit Union Regulations
Regulators are considering more risk-based capital requirements for larger, more complex firms, while ensuring proportionate regulation for smaller credit unions.

3. Free Pre-Application Support from the FCA
The FCA will provide complimentary guidance for organisations wishing to establish a mutual society, innovate their existing business model, or apply for targeted support permissions.

4. Faster Registration for New Mutual Societies
Application processing times will be cut from 15 working days to 10, encouraging more registrations through the FCA’s Mutuals Society Portal.

5. Immediate Removal of the Building Societies Sourcebook
The PRA has confirmed that the Building Societies Sourcebook has now been removed from the PRA rulebook with immediate effect.

In parallel, the FCA has published its own report as the registering authority, assessing the current state of the mutual societies sector.

Nikhil Rathi, Chief Executive of the FCA, said:

“The mutuals sector is incredibly diverse and deeply rooted in the communities it serves. Mutuals help people buy homes, access insurance, improve financial inclusion and build stronger communities — whether through a club, a pub, or a local allotment. We want to support their growth, and our new Development Unit will provide dedicated guidance while making it easier and faster for new mutuals to launch.”

Sam Woods, CEO of the PRA and Deputy Governor of the Bank of England, said:

“Mutuals are a vital part of the financial system. Today’s report highlights the sector’s growth and outlines what regulators can do to help it thrive in the years ahead.”

Economic Secretary to the Treasury, Lucy Rigby, commented:

“We are committed to doubling the size of the mutuals sector, and we welcome the regulators’ concrete steps to support its expansion. A stronger mutuals sector brings better value to members and communities, and plays an essential role in the UK’s financial and business landscape.”

Additional Regulatory Initiatives Supporting Mutuals

The new measures build upon existing efforts by the FCA and PRA to support mutuals and the broader financial sector, including:

• Streamlining the Senior Managers and Certification Regime to improve competitiveness.
• Launching the Scale-up Unit to provide tailored support for high-growth firms.
• Introducing the PRA’s Strong and Simple rules, simplifying capital requirements for smaller firms.
• Implementing Solvency UK, which significantly reduces administrative burdens for insurance companies.
• FCA mortgage market reforms, adopted by 85% of lenders (including building societies), allowing lenders to offer approximately £30,000 more on average.

The Size and Importance of the Mutuals Sector

Mutuals are owned by their members and exist to serve their needs. Across the UK, financial mutuals have over 30 million members, including:

• 93 mutual insurance firms
• 42 building societies
• 350 credit unions

Beyond financial mutuals, there are also 12 million memberships across more than 8,400 co-operative and community benefit societies. Together, they hold over £223 billion in assets and include housing associations, social clubs, and retail societies.

The new reports were launched at a joint FCA and PRA event held on 5 December in Rochdale, attended by Economic Secretary to the Treasury Lucy Rigby MP.