The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are inviting a new round of expressions of interest for its Scale-up Unit from building societies, banks and other eligible dual-regulated firms.
Alongside the programme’s existing eligibility criteria, the regulators are widening access for building societies, recognising that mutuals often pursue different growth pathways from banks.
The move follows the inclusion of Nottingham Building Society in the first group of Scale-up Unit firms, alongside a range of scaling banks. The regulators say the scheme aims to ensure ambitious mutuals can access the same tailored regulatory support as other growing firms.
Expressions of interest are open from 1 September to 30 September for banks, building societies and other dual-regulated firms.
“Building societies often have different business models and growth trajectories from banks and other firms,” the regulators said. “To ensure ambitious mutuals can benefit from the Scale-up Unit, the FCA and PRA are inviting expressions of interest from building societies with credible growth ambitions, even where they may not meet every aspect of the standard eligibility criteria.”
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Participating building societies would generally be expected to have assets above £1bn and projected net interest income growth of more than 15% over a three-year period, reflecting the structure and scale of the mutual sector. This compares with the existing Scale-up Unit eligibility range of £3bn to £20bn in assets for banks and other dual-regulated firms.
The FCA and PRA say the approach builds on commitments made in their joint mutuals landscape report, published in December 2025, “which set out measures to support the long-term sustainable growth of mutuals through proportionate regulation, targeted support and ongoing engagement with the sector”.
The Scale-up Unit sits alongside the FCA’s existing programmes, Innovation Pathways, Pre-Application Support Service (PASS) and Early and High Growth Oversight function, “creating a clear regulatory pathway from start-up to scale-up”, the add.
Since the FCA launched its innovation services, it says it has supported more than 1,000 innovative and growing firms.
“Mutuals play an important role in delivering competition, choice and value for consumers across the UK, said Sheree Howard, executive director, authorisations. “We recognise that building societies often grow in different ways from banks, so we want to ensure ambitious firms can access the same support to navigate regulation, invest with confidence and pursue sustainable growth through the Scale-up Unit.
“The inclusion of Nottingham Building Society in the first cohort highlighted the value that tailored regulatory support can offer growing mutuals. By widening access to the programme, we’re helping ensure building societies have the same opportunities to innovate, compete and grow as other firms.”
Charlotte Gerken, executive director for UK Deposit Takers at the Bank of England, said: “The Scale-up Unit is part of our strategy to support the UK’s economic competitiveness and growth: it is helping growing firms to navigate the regulatory framework, and we are now pleased to make our tailored support and engagement available to more mutuals and banks.”
