The Labour government has requested both leading financial regulators to review the rules governing mutual organisations to “unlock the full potential of the mutual and cooperative sector in the UK”.
Economic secretary to the Treasury Tulip Siddiq (pictured) has written to the chief executives of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to request a report by the end of next year.
Writing to FCA chief executive Nikhil Rathi and PRA chief executive Sam Woods, Siddiq highlighted “the government’s commitment to unlock the full potential of the mutual and cooperative sector in the UK, and the importance of effective and proportional regulation in supporting this”.
“I would welcome a report from the FCA and PRA assessing the current mutuals landscape. I am confident such a report, which I would appreciate before the end of 2025, would aid the government and regulators’ consideration of how best to support this sector to drive inclusive growth across the UK,” she added.
The Labour party highlighted its desire to make more from the mutual sector before this year’s election and is now beginning its work in this area.
Writing for Health & Protection in May, Association of Financial Mutuals vice chairman and Cirencester Friendly CEO Andy Morris explained some of the areas he believed the sector could develop and why it was a good place for growth to be sourced.