PRA consults on updated guidance for friendly society amalgamations and transfers
Executive Summary
The PRA has opened a consultation on updating its guidance for **friendly society amalgamations and transfers** by revising Statement of Policy 3/15 to give firms more detail on how **Part VIII transfers** are expected to progress. For compliance teams, this matters because it clarifies the PRA’s process expectations, including sequencing, when a **member vote may be waived**, when an **independent actuary’s report** may be required, and whether the process applies to firms that are or are not friendly societies. #
What Changed
- - The PRA proposes to set out a typical sequence of steps firms would follow when undertaking a Part VIII transfer.
- The PRA proposes to provide greater transparency on its decision-making considerations for Part VIII transactions.
- The PRA proposes to explain when it may waive the requirement for a member vote by the transferee.
- The PRA proposes to explain when it may require an independent actuary’s report.
- The PRA proposes to clarify the scope of applicability of the process for both friendly societies and non-friendly-society firms.
- The consultation is intended to make the existing legislative framework easier to navigate and to support the efficient execution of Part VIII transfers.
Suggested Considerations
- Firms planning a Part VIII transfer should map their transaction timetable against the PRA’s proposed step-by-step process and identify where the revised guidance may affect sequencing.
- Firms should assess whether their proposed transaction could qualify for a waiver of the transferee member vote and prepare supporting rationale and evidence accordingly.
- Firms should determine early whether the PRA is likely to expect an independent actuary’s report and build that workstream into the transaction plan.
- Firms should confirm whether the proposal applies to their structure, including whether they are a friendly society or another type of firm within scope.
- Firms and advisers should review current transaction playbooks and board papers to align them with the PRA’s stated approach before the consultation closes.
- Firms with planned or pending transactions should consider submitting consultation responses by 22 October 2026 if the proposed guidance would affect their execution, evidence pack, or governance process.
Key Dates
Compliance Impact
The immediate impact is medium-to-high for firms engaged in, or preparing for, Part VIII transfers because the consultation signals more explicit supervisory expectations on process, evidence, and timing. Failure to align transaction planning with the final guidance could increase execution risk, delay approvals, or require rework of governance, actuarial, or member-consent steps once the final Po
Who is Affected
References
AI-generated analysis. May contain errors or omissions — verify with the original BoE source before acting. Full disclaimer.
Summary
The proposals would provide more detail on the PRA’s approach to Part VIII transactions, helping firms plan amalgamations and transfers more efficiently.