The UK’s Prudential Regulation Authority (PRA) is consulting on updated guidance for friendly society amalgamations and transfers under Part VIII of the Friendly Societies Act.
The regulator said the changes would support friendly societies’ “long-term, sustainable growth and ability to compete effectively alongside other firms”.
Part VIII transfers allow insurance or banking businesses to transfer all or part of its business to another authorised firm.
The proposals include setting out a sequence that firms should follow when going through a Part VIII transfer, offering greater transparency on the PRA’s decision-making considerations and outlining the scope of applicability for friendly societies and non-friendly societies.
The consultation closes on 22 October.
The PRA confirmed last December that it would publish guidance on Part VIII transfers to “help mutual insurers better understand the process, costs and simplifications” currently applied.
It said this would help lower barriers to firms looking to merge or consolidate, after firms reported that undergoing a Part VII transfer can appear a “daunting and complicated process”.
Companies:Prudential Regulation Authority