PRA Proposes Updated Guidance for Friendly Society Amalgamations
The Prudential Regulation Authority (PRA) has initiated a consultation regarding updated guidance for amalgamations and transfers of friendly societies as outlined in Part VIII of the Financial Services and Markets Act. The revisions to Statement of Policy 3/15 intend to enhance clarity and detail for firms working within the current legislative framework, facilitating smoother Part VIII transfers. Notable aspects include a standard transaction sequence, increased transparency on decision-making factors—such as the PRA's ability to waive member votes by the transferee or mandate an independent actuary's report—and distinctions between friendly societies and other entities. This consultation, shaped by insights from firms and advisers experienced in Part VIII transactions, will conclude on 22 October 2026. If feedback is favorable, the changes will be implemented upon the final Policy Statement's release.
Key facts
- PRA consults on updated guidance for friendly society amalgamations and transfers.
- Proposed changes to Statement of Policy 3/15.
- Consultation closes on 22 October 2026.
- Proposals informed by firms and advisers with Part VIII transaction experience.
- Key features include typical transaction sequence, transparency on member vote waiver, and independent actuary report requirements.
- Guidance clarifies scope for friendly societies versus non-friendly societies.
- PRA committed to supporting long-term growth of financial mutuals.
- Proposals take effect on publication of final Policy Statement.
Entities
Institutions
- Prudential Regulation Authority
- Financial Conduct Authority
Locations
- United Kingdom