The Prudential Regulation Authority (PRA) has launched a consultation on updated guidance for friendly society amalgamations and transfers. The proposals aim to provide more detail and transparency for firms navigating the legislative framework. Friendly societies play an important role in the UK financial services sector, and the PRA is committed to supporting their long-term growth and ability to compete effectively alongside other firms.
The proposed changes to Statement of Policy 3/15 have been informed by firms and advisers with experience of Part VIII transactions. The key features of the proposal include setting out a typical sequence of steps for firms undertaking a Part VIII transfer, providing greater transparency on the PRA's decision-making considerations, and outlining the scope of applicability of the process for firms that are friendly societies and firms that are not.
The consultation is open for responses, with a closing date of 22 October 2026. Subject to consultation responses, the proposals would take effect on publication of the final Policy Statement. The PRA's efforts to provide clear guidance are expected to support the efficient execution of Part VIII transfers, allowing firms to plan and execute amalgamations and transfers more efficiently.