Regulators will look into how rules affect mutuals

The Financial Conduct Authority and the Prudential Regulation Authority will consider how their rules will affect mutuals.

Guidance published alongside the Financial Services Bill last week says changes will be made to the legislation on which regulation of mutuals and cooperatives is based to move regulation across to the PRA and the FCA.

Association of Financial Mutuals chief executive Martin Shaw says: “If what is in the bill is executed fairly, we will be happy.”

The coalition agreement commits the Government to “promoting mutuals and fostering diversity” in financial services.

Treasury select committee member Andy Love says: “Although there is much to welcome, I am disappointed that the Government did not develop and extend the co-operative agenda.”