Mutual Societies

What is a Mutual Society?

A Mutual Society is an organisation owned and democratically controlled by its members, with the primary aim of benefiting its members or the wider community. There are over 10,000 mutual societies in the UK, and they include building societies, registered societies (such as co-operatives and community benefit societies), friendly societies, and credit unions. Unlike other business entities, mutual societies are regulated by the Financial Conduct Authority (FCA) rather than Companies House. Once registered as a mutual society, these organisations must file their annual returns with the FCA, which maintains their public records.

Regulatory Framework

Mutual societies engaging in regulated financial activities, such as accepting deposits or providing insurance, are jointly regulated by the FCA and the Prudential Regulation Authority (PRA). This regulation grants them access to certain consumer protections, including the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS). However, societies not regulated by the FCA or PRA do not offer these protections to their members.

The Mutual Public Register, maintained by the FCA, is a record of all registered mutual societies, providing information on active and inactive societies.

Useful Links for Further Reading

FCA: Register of Mutual Societies - This link provides access to the FCA’s official register, offering comprehensive information on all mutual societies registered in the UK. It’s essential for those seeking details about specific mutual societies, including registration status and annual filings.

Financial Ombudsman Service: Mutual Society Complaints - This site explains how members of regulated mutual societies can access the Financial Ombudsman Service for resolving disputes, making it useful for members and customers to understand their rights in case of a complaint.

FCA and PRA: Overview of Mutual Societies Regulation - This page provides an overview of how mutual societies are regulated by the FCA and PRA, including compliance obligations and consumer protections available to members, helping stakeholders understand the regulatory framework and the protections available to them.