PRA consults on updated guidance for friendly society amalgamations and transfers
News release
Financial mutuals play an important role in the UK financial services sector, and the PRA is committed to supporting their long-term, sustainable growth and ability to compete effectively alongside other firms.
In the PRA/FCA Mutuals Landscape Report, the PRA highlighted its plan to provide guidance on the Part VIII transfer process. The proposed changes to Statement of Policy 3/15, which have been informed by firms and advisers with experience of Part VIII transactions, help deliver on that commitment.
The proposals are intended to provide more detail and transparency for firms navigating the existing legislative framework, supporting the efficient execution of Part VIII transfers.
The key features of the proposal include:
set out a sequence that firms would typically follow when undertaking a Part VIII transfer;
- provide greater transparency on the PRA’s decision-making considerations, including when the PRA may waive the requirement for a member vote by the transferee and when it may require an independent actuary’s report;
- set out the scope of applicability of the process for firms that are friendly societies and firms that are not friendly societies.
- The consultation closes on 22 October 2026. Subject to consultation responses, the proposals would take effect on publication of the final Policy Statement.
