UK Building Society Authorisation Solutions | Pre-licensing Support | UK Building Society Authorisation Application Management | Post-licensing Risk and Compliance Solutions

We offer a comprehensive set of solutions to help you obtain and maintain a UK Building Society Authorisation issued jointly by the UK Prudential Regulation Authority (PRA) and the UK Financial Conduct Authority (FCA), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• Regulated UK building societies’ obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the UK building societies’ authorisation regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the UK building societies’ authorisation process, including but not limited to the following aspects:

• UK Building Society Authorisation Guidance: Advising on a wide range of aspects associated with UK building society authorisation as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the UK building societies’ authorisation conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the UK building societies’ authorisation regime
• UK Building Society Authorisation Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

 

Service Coverage

We offer comprehensive support for a wide range of UK building society authorisation applications tailored to meet the specific needs of the following businesses:

• Retail Building Societies
• Wholesale Building Societies
• Community Building Societies
• Mutual Building Societies
• Regional Building Societies

You can find more information about our UK building society authorisation solutions below:

 

UK Building Societies’ Authorisation Licensing Preparation

Pre-licensing Compliance Assurance

Our UK building society authorisation solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a UK building society authorisation
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the UK building societies’ authorisation process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your UK building society authorisation, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• UK Building Society Authorisation Application Plan: We help you establish a roadmap to effectively meet the requirements for your UK building society authorisation

 

UK Building Society Authorisation Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our UK building societies’ authorisation solution covers:

• Compliance Model Selection: To help you best comply with the UK building societies’ authorisation regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for deposit takes and lenders and other applicable regulated UK building societies' obligations, keeping in mind your specific circumstances, available resources and business goals.

 

UK Building Society Authorisation and Entering a Regulated Environment

We help businesses transition from an unregulated environment to operating under the UK building societies’ authorisation regime, helping them meet their obligations as a UK building society authorisation holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the UK building societies’ authorisation regime requirements.

Our focus areas for this service include:

• New businesses
• Existing building societies operating in unregulated markets
• Regulated building societies that expand into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to offer regulated deposit-taking or lending services as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with the regulated building societies’ obligations globally.

 

UK Building Society Authorisation and Wholesale Markets

Obtaining authorisation to operate as a UK building society is not always the most suitable option for all institutions. For example, if your strategy does not include retail market expansion or the provision of typical building society products, alternative regulated firm structures may be a better fit.

Operating solely in wholesale markets can sometimes be more aligned with your business objectives. We offer a wide range of risk and compliance management solutions for:

• Firms authorised as UK building societies that engage in wholesale market activities
• Firms that are not building societies but operate under other UK authorisation categories to conduct wholesale-only activities
• Firms that are subject to UK regulatory obligations due to wholesale market participation, without offering services to the retail sector

We assist these businesses in meeting applicable UK regulatory and compliance obligations, which can include:

• Financial promotions and advertisement rules
• Fair dealing and client conduct regulations
• Risk management frameworks
• Oversight of outsourced service providers
• Restrictions on providing services to retail clients (where applicable under FCA rules)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) obligations
• Data protection and information management requirements

 

UK Building Society Authorisation Application

We assist with your licence application through ongoing engagement in the UK building societies’ authorisation process:

• Document Compilation and Review: We compile and review all required supporting documents to support your UK building society authorisation application.
• Application Form Completion: We assist you in completing the forms to ensure all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• UK building societies’ authorisation Process and Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving UK Building Society Authorisation Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our UK building society authorisation solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for UK Building Society Authorisation Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the UK building societies’ authorisation regime requirements.
• Specific Licence Conditions Compliance: We can help you manage additional conditions imposed on your UK building society authorisation, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the UK building societies’ authorisation process, providing you with solutions to navigate and resolve these challenges efficiently.
• For further information, please visit our Compliance Remediation Solutions page.

 

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed UK building societies. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• Regulated UK Building Societies’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the UK building societies’ authorisation regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for UK Building Societies.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• Regulated building societies’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• Building societies’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for UK building societies. For more information, visit our Specialised AML/CFT Solutions page for Building Societies.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (e.g., your banking partners, insurance companies, and liquidity providers).

 

 

Risk and Compliance Obligations for UK Building Society Authorisation Holders

UK building society authorisation holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

UK Building Society Authorisation and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as per the requirements of the Building Societies Act 1986 (PRA rules on systems & controls) and PRA Rulebook – SS1/18 (Governance)).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil regulated building societies' obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks (as per PRA Rulebook – SS2/16 (Risk Control) and CRR requirements for capital & liquidity).
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the UK building societies’ authorisation requirements (as per PRA Rulebook – SS1/18 and FCA Handbook GEN (Systems and Controls) GEN 5).
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the UK building societies’ authorisation regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We assist UK building societies in developing capital adequacy monitoring controls where required under licensing frameworks, including credit unions, building societies, and non-bank lenders operating under prudential or financial licensing regimes.
• Liquidity Management Requirements: We help implement liquidity monitoring and cash flow stress testing controls for authorised building societies, particularly where operating under financial institution or protected deposit frameworks.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the UK building societies’ authorisation regime.
• Mutual Ownership and Member Voting Rights: We help building societies design and document governance frameworks that preserve member voting rights, facilitate AGM processes, and comply with mutual ownership obligations under the Building Societies Act. (as per the requirements of the Building Societies Act 1986 ss 11–17)

 

UK Building Society Authorisation and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with UK building societies’ authorisation obligations for overseeing outsourced services (PRA SS2/17 (Outsourcing) & FCA SYSC 8), also covering related obligations under AML/CFT compliance, ISO requirements, and more/
• Structures for Governance: We can help you establish effective governance structures to comply with UK building societies’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with the UK building societies’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet UK building societies’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the UK building societies’ authorisation regime.

 

UK Building Society Authorisation and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for UK building societies’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading (FSMA 2000 s 138D (Principles for Business) & FCA COCON (Conflicts of Interest) rules).
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with UK building societies’ authorisation standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help licensed UK building societies comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with UK building societies’ authorisation obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.

 

UK Building Society Authorisation and Resource Management Obligations

We can help you comply with the following requirements of the UK building societies’ authorisation regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, deposit taking or lending regulations.
• Competence and Accreditations of Advisors and Representatives: We can advise you on certifications and continuing professional development (CPD) requirements for compliance professionals and senior management.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

UK Building Society Authorisation and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • UK building societies’ authorisation obligations
  • UK building societies’ AML/CFT obligations (STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • UK building societies’ obligations under financial market conduct regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the UK building societies’ authorisation regime, applicable operational standards, and more.

 

Related Services

We assist in obtaining UK building society authorisation equivalents in the following jurisdictions:

• Australia: For more information on the Australian equivalent of a UK building society authorisation, the ADI licence, you can visit our ADI Licence page.
• New Zealand: For more information on the New Zealand equivalent of a UK building society authorisation, the deposit takers licence, you can visit our Deposit Takers Licence page.
• United States: For more information on the United States equivalent of a UK building society authorisation, the Federal Savings and Loan Association license, you can visit our Federal Savings and Loan Association Licence page.
• Singapore: For more information on the Singaporean equivalent of a UK building society authorisation, the finance company licence, you can visit our Singapore Finance Company Licence page.
• Other Jurisdictions: We also offer licensing solutions for finance company licensing in prominent financial centres and offshore tax havens, including but not limited to: