Regulatory Alerts2026-07-22
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PRA consults on updated guidance for friendly society amalgamations and transfers
The PRA proposes changes to Statement of Policy 3/15 to provide detailed guidance on Part VIII transactions for financial mutuals, including friendly societies. The updated framework outlines a typical sequence for transfers, clarifies decision-making criteria for waiving member votes or requiring independent actuary reports, and defines the scope of applicability for different firm types. This consultation aims to enhance transparency and efficiency in executing amalgamations and transfers under the existing legislative framework.
The proposals would provide more detail on the PRA’s approach to Part VIII transactions, helping firms plan amalgamations and transfers more efficiently.
Published on
22 July 2026
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.
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