In this report we assess the mutual societies landscape and make recommendations designed to support sustainable growth of the sector.
Overview
Our report:
- sets out relevant legislation to the societies registered by the FCA
- analyses trends in the data of mutuals society activity and registration
- categorises the sector in detail to show the diversity of activity
- makes observations and recommendations to support the sector
Alongside this report we have published a joint report with the Prudential Regulation Authority[3] (PRA) assessing mutuals in financial services.
We have also published 2 pieces of research commissioned by the FCA. One sets out a co-operative entrepreneurial ecosystem[4], and the other examines the role of networks in the co-operative ecosystem[5] through examples from different jurisdictions.
Who this report is relevant to
- Mutual societies
- Trade bodies
- Advisers
- Researchers
- Policymakers
Recommendations and next steps
Our report sets out recommendations across the following areas:
- Networks and support
- Law
- Systems and data
- Cost and time
- Knowledge and development
We are making recommendations and taking steps to support sustainable growth in the sector.
- It will be quicker to start up societies.
- Costs for existing societies making applications to us will reduce as we remove most statutory declarations.
- Support will be available with the launch of our Mutual Societies Development Unit[6] and we will now offer a pre-application support service[7].
Background
The FCA is the registering authority for mutual societies in the UK. Our registering authority function[8] is distinct from our role under the Financial Services and Markets Act 2000 (FSMA).
In the UK there are more than 8,400 co-operative and community benefit societies collectively holding £223bn in assets with more than 12 million memberships.
