The Mutuals’ Redeemable and Deferred Shares Bill has achieved its Second Reading in the House of Lords. The Bill, brought forward by Lord Naseby, will now proceed to Committee Stage and Third Reading in the Lords before making its way to the House of Commons.
Lord Naseby set out in detail why the Bill was important and thanked mutual businesses and Parliamentary colleagues for their support. He spoke about the potential of the Bill:
“If the Bill goes ahead, mutuals will be able to source external capital without losing their mutual status, and some very specific benefits will follow.”
It was clear during the debate that the Bill would enjoy cross-Party support. Liberal Democrat Lord Newby spoke for the Government and explained that the Government would support the creation of deferred shares under the Bill, and bring forward positive amendments to make these work:
“The Government agree that the deferred share capital instrument for mutual insurers and friendly societies is a good way forward, and the mutuals have demonstrated a clear need and demand for this instrument. We therefore support these proposals in the Bill.”
Speaking for Labour, Lord Kennedy also welcomed the Bill:
“This is a good Bill, a forward-thinking Bill and a Bill that seeks to protect our mutual societies, helping them to grow and compete on a more equal footing. It should have the support of the Government.”