Launched today at an event in Rochdale, the initiative aligns with the UK government’s ambition to double the size of the sector, which currently serves over 30 million members.

This includes 93 mutual insurance firms, 42 building societies and 350 credit unions. There are also 12 million memberships across over 8,400 co-operative and community benefit societies. Collectively, these hold more than £223 billion in assets and include housing associations, social clubs and retail societies.

The centrepiece of the announcement is the creation of a new Mutual Societies Development Unit by the FCA. This unit will serve as a central hub of expertise to help mutuals navigate policy changes, grow, collaborate, and build resilience.

Additional measures include:

• 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, chief executive 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.” 

Economic Secretary to the Treasury Lucy Rigby, who attended the launch event in Rochdale, said: “We have committed to double the size of the mutuals sector, and are pleased the regulators are taking concrete steps to support the sector’s growth so it can deliver better value for members and communities.

“Mutuals form an important part of the UK’s financial and business landscape, supporting the savings, borrowing, pensions and more of millions of people.”

Today’s announcements build on existing regulatory initiatives to support mutuals and the wider financial sector, including: 

• The regulators’ joint proposals to streamline the Senior Managers and Certification Regime to support competitiveness.
• The launch of the Scale-up Unit, providing tailored support to firms with growth ambitions.
• The PRA’s Strong and Simple rules, which simplify capital requirements for smaller firms.
• The PRA’s introduction of Solvency UK, which significantly cuts red tape for insurance firms.
• The FCA’s mortgage market reforms have been taken up by 85% of lenders, including building societies, leading to an additional £30,000 lending on average to borrowers.

The Building Societies Association (BSA) has warmly welcomed the report, specifically the retirement of the “anti-competitive” sourcebook. Ruth Doubleday, head of prudential Regulation at the BSA, described the move as the beginning of a “new era of more proportionate regulation”.

The BSA noted that mutuals provided £4 billion in additional benefits to members last year compared to banks. They argue that the new framework, including the ‘Strong and Simple’ rules, acknowledges the lower risk profile of mutuals, which are not driven by short-term shareholder profits. Still, the BSA continues to call for metrics to monitor business model diversity to ensure future policy remains balanced.