New measures designed to support the growth of the mutuals sector have been announced today by the financial regulators.

The proposals, published in a joint report from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), include a review of credit union regulations and the launch of a Mutual Societies Development Unit by the FCA.

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 42 building societies and 350 credit unions, as well as 93 mutual insurance firms.

There are also 12 million memberships across over 8,400 co-operative and community benefit societies. Collectively, these hold more than £223bn in assets and include housing associations, social clubs and retail societies.

Under the new plans, an FCA Mutual Societies Development Unit that will act as a central hub of expertise helping mutuals navigate policy and legislative changes. It will also support initiatives such as co-operative networks that enable mutuals to collaborate, grow and build resilience.

The proposals include a PRA and FCA review of mutual credit union regulations, considering more risk-based capital requirements for larger, complex firms and proportionality for smaller credit unions.

They also include confirmation from the PRA that the Building Societies Sourcebook has been removed from the PRA rulebook with immediate effect.

CEO of the PRA and deputy governor at the Bank of England, Sam Woods, 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.”

Chief executive of the FCA, Nikhil Rathi, added: “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 worst events, 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.”

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