Mutual societies registration function: 2021-22

We reviewed our strategy for the next three years and we aim to maintain public confidence in the different legal structures mutual societies can use by:  

• operating a system of oversight to assess and drive compliance   
• supporting the mutual society legal structures, and acting to tackle harm  
• helping the public, societies, and their members understand the nature of our role 

We will do this by focusing on data, digital platforms (eg Mutuals Society Portal), compliance and our engagement with stakeholders.

We communicated with societies, sponsoring bodies, and regular submitters of applications, on 10 November 2021 to update the Covid-19 related measures we had in place.

In that update we said:

• Annual Returns: in April 2021 we explained that for annual returns due by 31 October 2021, we will not act to follow-up on delayed submission where that delay is three months or less. This remains the case. Though we are not extending this general forbearance further, we are mindful that some societies will still be experiencing delays in producing accounts and intend to engage supportively to bring about submission.   
• General Meetings: societies can hold meetings virtually where this is not prevented by legislation or their rules. We welcome that we have seen lots of societies taking the opportunity to update their rules over the last year to better facilitate virtual meetings where possible. It remains the case that societies are expected to comply with any legislative requirement, or requirements under their own rules, for holding meetings. It may be in the public interest for us to act if we see non-compliance. This will be assessed on a case-by-case basis.   
• Statutory declarations: from 13 December 2021, we will no longer offer forbearance for statutory declarations required by either mutuals legislation or our application forms. They will need to be fully completed on submission to us.   
• Electronic submission: we continue to accept and encourage electronic submission of applications and annual returns, including the use of electronic signatures where that is possible. 

The Mutuals Public Register[1] provides important information for societies, their members and the public. As well as listing the societies registered, it also holds documents for each society, such as annual returns, accounts and rule amendments.  

We have continued to make accessibility improvements to the register. As part of our strategy, we plan to make other improvements to the register to enhance its functionality.

We carried out an extensive programme of digitisation of the paper records we held. This programme has now been completed. This year we uploaded a further 35,393 documents to the register. 

The Mutuals Society Portal[2] provides a straightforward and efficient way for mutuals to send us their annual returns and other information. This year the number of registered users has increased by 21%, to 8,023.

On 2 February 2022 we held a virtual roundtable event attended by 24 people from 16 society sponsoring bodies[3]. The event was a valuable opportunity to share views and understand what we can do to help societies and the registration process. Future roundtable events are scheduled for 2022-23.

We engage with firms of solicitors who regularly submit registration applications to us. Between December 2021 and February 2022, we wrote to these firms and held meetings with five of them to seek feedback and discuss improvements to the operation of the registration function.  

We also participated in the following: 

• a webinar held by a sponsoring body for their members  
• discussions in a working group exploring a Statement of Recommended Practice (SORP) for co-operative accounts, facilitated by The Centre of Excellence in Accounting and Reporting for Co-operatives[4] 
• a seminar on ‘Legal Innovations for Multi-stakeholder Governance’[5], hosted by the UK Society for Co-operative Studies in partnership with the EMES Network, and the FairShares Institute at Sheffield Hallam University

We welcomed and implemented the suggestion from sponsoring bodies to add to the information we provide to newly registered societies through a ‘new registration’ leaflet. We have also pulled together existing guidance on ending registration (eg cancellation, dissolution) for co-operative and community benefit societies into a single Information Note[6] for ease of reference.

We have: 

• inspected the register of members of a society, using our power under s30(8) of the Co-operative and Community Benefit Societies Act 2014  
• called a special meeting of a society, under s106 of the Co-operative and Community Benefit Societies Act 2014 following an application from members of that society

These powers were exercised in relation to the Licensed Taxi Drivers Association Limited (registration number 21472R).

Last year we referenced[7] the use of our power of cancellation of a society pursuant to Condition D at Section 5(5)(c) of the Co-operative and Community Benefit Societies Act 2014. That power was used in relation to what was then West Solent Solar Co-operative Limited (registration number 32169R).

We publish separately[8] instances of prosecution and cancellation for non-submission of annual returns and accounts.

We regularly engage with societies to bring about compliance. This often does not involve the use of a statutory power. Instead, societies voluntarily take action to bring themselves into compliance. In 2021-22 we contacted 96 societies on matters of compliance.  

Separately, we were a respondent to a decision before the First-tier Tribunal (General Regulatory Chamber) Information Rights, relating to a mutual society (Appeal Reference EA/2021/0003[9]). 

Complaints about the delivery of the mutuals registration function are covered by our complaints scheme[10]. During this year, there was one complaint subject to a decision of the Complaints Commissioner[11]. This was complaint FCA001053[12], published 7 December 2021.