Potential sale of LV= to Bain Capital

The All-Party Parliamentary Group (APPG) for Mutuals is today [8th February] announcing an inquiry into LV=’s recent decision to sell to Bain Capital.

LV=, one of Britain’s biggest financial mutuals, founded in 1843 and trading for most of its life as Liverpool Victoria, is well known across the UK.

The inquiry will consider whether LV=’s proposals are good for policy holders, for competition and for the business.  LV= has itself described the deal with Bain as “an excellent financial outcome for all of our members.”

Launching the inquiry, Gareth Thomas, MP for Harrow West and Chair of the APPG said:

“Members of the parliamentary group are concerned at what impact the sale will have on LV= members, the insurance industry and competition and choice in financial services. We are also interested in whether the LV= decision reflects weaknesses in the Government and regulators’ views and support of mutuals.”

The APPG will seek evidence from mutual sector experts, financial analysts and from LV= itself.  The Group is keen to hear from other individuals and organisations and with an interest in this Inquiry. The deadline for the submission of written evidence is Friday 5th March and the APPG plans to hold a number of oral evidence sessions in the first quarter of 2021, before publishing its inquiry report. Evidence can be submitted to the APPG Secretariat at appg@mutuo.coop

Inquiry Terms of Reference

The APPG will consider, and is keen to understand:

  1. The context of why at this time the status quo is not good enough, given LV=’s brand strength, capital and momentum.
  2. The impact that the sale will have on LV=’s members, the insurance industry & the implications for competition & choice in financial services more widely.
  3. The rationale that supported the decision by the Board of LV= to sell the business to Bain Capital, and whether other options were considered fully.
  4. The motivation behind LV=’s recent conversion from a friendly society to a mutual company, including how this is connected to the proposed demutualisation.
  5. The wider legislative framework for Friendly Societies and Mutual Insurers, with a particular focus on barriers to raising capital, protection from demutualisation and attitude of Government and regulators.

Measuring the Value of Mutuality

As values-based businesses, co-operatives and mutuals need to be able to describe and quantify the benefits that their mutual business structure brings to customers, stakeholders and the wider society.

The Australian Business Council of Co-operatives and Mutuals (BCCM) has worked with Monash University to develop a new way of measuring this positive impact – the Mutual Value Measurement (MVM).

Mutuo Mutual Value Measurement

Mutuo develops new Mutual Value Measurement Consultancy package

As the first authorised implementer of MVM, Mutuo has now developed a new consultancy package to help co-operative and mutual businesses to apply the six dimensions of mutual value to their business:

  1. Commerciality
  2. Member relationships
  3. Shaping markets
  4. Community relationships
  5. Ecosystem and reciprocity
  6. Mutual mindset

Our consultancy service is designed through a 4-step package that helps co-operatives and mutuals to understand the tool and to apply it within firms:

  • Step 1 – Baseline review of business
  • Step 2 – Online Workshop with key leaders
  • Step 3 – We produce a Mutual Value Report Statement
  • Step 4 – Consider feedback and finalise statement

In the current social distancing environment, this consultancy is delivered via video conferencing and online methods.

Find out more about MVM and the consultancy package:

View PDF brochure

While this package has been developed with Australian businesses, MVM works for any co-operative or mutual, wherever you might be based.

Contact us today to find out more.

New report recognises the leadership and resilience of Australian co-ops and mutuals

The Business Council for Co-operatives and Mutuals has released a landmark new report, Leading the Resilience: Co-operatives and mutuals through COVID-19.

View the report

This report, authored and researched by Mutuo, highlights important differences between the response of Australian mutuals to crises when compared to investor-owned businesses. 

Mutuo’s Peter Hunt said:

“This research demonstrates clearly how co-ops and mutuals operated through the challenges of COVID-19. We spoke with CEOs from across the sector and were struck by their common focus on continuing employment for their staff and providing real support and guidance for their members.”

The report also finds that Australian co-ops and mutuals are 25 per cent longer lived than their ASX listed counterparts.

In response to COVID-19, co-operatives and mutuals have:

  • bailed in, rather than being bailed out, investing from their balance sheet to aid the recovery
  • been job keepers, moving strategically from the outset to retain employees through redeployment, rather than implementing mass lay-offs
  • implemented mental health strategies for members, customers and staff

Watch a video preview of the report from author Peter Hunt.

First offer of Mutuo-inspired capital instrument in Australia

We are delighted to see the first offer of Mutual Capital Instruments in Australia.

Australian Unity has published an offer of $100 million of Mutual Capital Instruments to help fund the growth of its business. It is the first Australian mutual to take advantage of new legislation passed in April 2019 which created this new type of mutual share.

Mutuo was instrumental in the design and implementation of the project which brought about the new share:

  • Conceived of the project
  • Entered into a partnership with the Business Council of Co-operatives and Mutuals
  • Formed a project team of leading Australian co-operative and mutual businesses to drive the initiative forward
  • Worked with lawyers and funding experts to design the new mutual capital instrument
  • Negotiated with Federal Treasury officials and ministers
  • Helped to build bipartisan support for the new legislation
  • Assisted Parliamentarians in its passage through the Federal Parliament

Commenting on the news, Peter Hunt, Managing Partner of Mutuo said,

Peter Hunt from Mutuo

“Today is the culmination of four years’ work and just shows what can be achieved by co-operative and mutual businesses working together with their peak body to deliver a real change in legislation. The new mutual capital instruments draw upon the best experience of co-operative and mutual fundraising from across the world.

The new capital will facilitate growth and innovation in the best Australian co-operatives and mutuals, supporting the continued success of the sector. Mutuo’s mission is to improve the business environment for co-operatives and mutuals and we are delighted at this development. We wish Australian Unity all the best in their pioneering effort.”

For more information, contact Peter Hunt.

Co-operative Farming: Blueprint for future proofing Aussie farmers

Throughout 2020 Mutuo worked on a new project for the Australian Business Council of Co-operatives and Mutuals designed to support farmers, fishers and foresters through the formation of new farming co-operatives and to foster the resilience and growth of established farming co-operatives.

The project saw a series of roundtables with Australian agricultural co-operative leaders examining some of the sectors key challenges as well as opportunities for future growth.

In September 2020, working closely with these agricultural leaders, Mutuo produced a Blueprint for future proofing Aussie farmers which identified why co-ops are good for Australian farmers, Australia’s regions and Australia as a whole.

View the PDF

A plan for economic growth through co-operatives

In August 2020 Mutuo worked with the Business Council of Co-operatives and Mutuals (BCCM) to produce their Pre-Budget submission to the Australian Federal Government.

Recovery Through Co-operation is a plan for jobs, growth and manufacturing, which would be delivered through a number of regional co-operative development clusters. The two identified growth zones would be built around already successful major co-operatives in Northern New South Wales and Western Australia.

The program consists of a plan to facilitate inter business collaboration on supply chains and exports, by accelerating business opportunities and mobilising investment capital into Australia’s regions.

View the PDF

Free Webinar: Policy Guides for Co-operatives and Mutuals

Over the past decade Mutuo has produced a series of policy guides, helping to improve the business environment for co-operatives and mutuals.

As a central part of a communications plan, these guides improve lobbying by sharpening our messages and by clarifying our joint objectives.

They have had a real impact, leading to better relations with government, new policy initiatives and improvements to legislation.

The guides have been produced for national representative bodies in the UK and Australia, and for global business sector bodies such as the International Co-operative Alliance and ICMIF.

In this presentation, Mutuo’s Mark Willetts sets out how and why these guides were created, how they help to influence, and what they have achieved.

So please check out the webinar,  if you’d like more information about how we can help you, please get in touch.

UK Parliament considers new co-operative capital Bill


A new Bill will be introduced in Parliament today [Wednesday 5th February 2020] which aims to facilitate more capital investment into co-operatives. The Bill, brought forward by Cardiff North MP, Anna McMorrin, will be read for a first time in the House of Commons on Wednesday 5th February.

The Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill proposes a way for co-operatives to grow and develop their businesses whilst enhancing their commitment to member ownership and control. Also known as the Green Share Bill, it will focus new funds on environmentally sustainable investments within this important business sector.

The Bill also introduces new provisions including an option restricting the demutualisation of co-operatives into companies and the distribution of their legacy assets.

It takes forward a key recommendation of The Ownership Commission and builds on similar legislation seen in other parts of the world.

Mutuo’s Managing Partner, Peter Hunt, said,

‘The challenge has been to amend the capital regime for co-ops and community benefit societies, to permit the injection of external capital, whilst enhancing their mutuality.  We can point to existing examples of where this has been achieved in other countries such as Canada, Australia and The Netherlands. 

Anna McMorrin’s Bill offers an important step forward for these mutuals, helping to make the business model even more popular for co-ops which are keen to take advantage of their high levels of trust among customers and members.’

New report: Who Owns Europe? … and why it matters for Progressives

Who Owns Europe
Who Owns Europe? ... and why it matters for Progressives

Ownership matters. Owners of businesses set the strategic direction, purpose and the terms of employment. Owners of land decide what should be done with it and who can access it. Owners of property decide how it is deployed and who can enjoy its benefits.

But increasingly, ownership is being concentrated in fewer hands, shifting ever more from shared ownership towards private corporations and individuals.

Government policy across the EU takes little or no account of the shifting nature of ownership. It is time to make sure that ownership works in the maximum public interest, serving citizens, customers and employees alike.

Who Owns Europe?, a new report from FEPS/Mutuo launched today, examines ownership across the European Union. It considers how Europe’s businesses are owned and where the benefits of business flow. It looks closely at different types of corporate ownership and the effect they have on fairness and equity.

View the report in full

The report makes a series of recommendations aimed at ensuring strong economies which benefit the wider public good and recommends that progressives should promote policies that:

  • Encourage corporate diversity to ensure that businesses for public benefit are recognised in national constitutions or other supreme law
  • Ensure that the remit of government business and enterprise departments includes all types of business, including mutually owned and public purpose enterprise
  • Ensure that in all legislation, the role of and impact on different types of business forms are considered, rather than simply assuming one approach
  • Seek to ensure in particular, that co-operative and other fields of organisational law merit equivalent attention
  • Promote the appointment to ministerial and official posts, champions to represent different types of business
  • Explore incentives for encouraging those setting up new businesses to choose a public benefit business

The report concludes that we can only prevent Europe being taken over by an idea – that of the pursuit of private gain – if we move away from an economy dominated by business for private profit to one for public benefit.

Learn more about FEPS

A Manifesto for Mutuals: 2019 General Election Policy

Since the last General Election, UK Mutuals have enjoyed continued and welcome all-party political support. 

But there is much more to do to ensure that these important businesses can play a greater role in our economy and society and help to build a fairer country. 

By its policy, legislative and regulatory actions, the next Government can enable these businesses to fulfil their potential and deliver a wide range of public policy objectives. 

In this election, we call upon each of the political parties to promise to adopt our plan for action:

1. Recognise and support the value of diverse forms of enterprise in the UK economy 

2. Ensure that policy, legislation and regulation works to provide a fair business environment for mutuals: 

• Greater recognition and policy understanding of the sector by national and devolved politicians 

• A commitment to an enabling legislative environment for the sector in the UK 

• An understanding of where inappropriate regulation affects the sector and a commitment to address this where it occurs 


3. Work with Mutuo and other sector bodies to implement the objectives of the UK Mutual Economy Report 2019

Download the Manifesto

Mutuo launches new influencing strategy for consumer co-ops

Mutuo has launched a new influencing strategy document for consumer co-operatives. The policy guide, co-produced with Consumer Co-operatives Worldwide [CCW], makes the case for consumer co-ops and demonstrates their importance to the global economy and wider society.

The document sets out a number of ways in which a better policy environment for consumer co-ops could be created, including:

  • Adoption of the 2002 UN recommendation that governments should support co-ops
  • Ensuring government departments and ministers are sufficently skilled to work with co-ops
  • Improving education about co-ops
  • Adopting the legal principle of ‘indivisible reserves’ to safeguard co-op assets
  • Legislating for new co-op capital raising instruments 
  • Permitting more cross border trading for co-ops 
  • Better collection of statistics nationally and internationally 

Speaking at the launch of the guide in Moscow, Mark Willetts said: 

“We want to ensure the best possible business environment for consumer co-ops. These businesses are the original type of co-op. They provide significant competition for consumers and drive up standards of safety, quality and sustainability. CCW’s guide sets out a number of key measures that should be adopted to ensure this sector continues to grow and thrive.”

The document is the latest in a series of policy guides that Mutuo has co-authored in order to boost the international co-operative and mutual sector, having previously published guides with ICMIF, AMICE, the ICA and Australia’s BCCM.

Download the guide

To find out more about CCW, click here.

Purpose-driven businesses top £130 billion income per annum

Purpose-driven businesses top £130 billion income per annum

Co-operative and mutual businesses account for over £133.5bn of income annually and touch the lives of 1 in 3 people in the UK, according to a new report published by the All-Party Parliamentary Group for Mutuals.

These businesses have a distinct purpose to serve their customers and communities, in contrast to investor owned firms.

Mutuals exist in every sector of the economy, from financial services to housing, to food retailing, to public services and sport. Whether it is through supplying affordable and sustainable services to consumers, providing rewarding work or strengthening community enterprise, a strong network of co-operative and mutual businesses plays an important part in a diverse and modern British economy.

The report shows significant income from each of the various sub-sectors of the co-operative and mutual sector:

from co-operatives:£36.1bn
from building societies:£5.8bn
from friendly societies & mutual insurers:£19.6bn
from housing associations:£20.0bn
from NHS foundation trusts:£52.0bn
Total:£133.5bn

At a time when Brexit dominates the UK policy agenda, mutual businesses are continuing to grow – creating an economy and society that works in the interests of the widest number of people by sharing power in, and the rewards of, business.

Mutuals help to deliver a wide range of public policy objectives. They:

  • Strengthen a UK owned business sector
  • Spread wealth more broadly and fairly throughout the country
  • Provide competition and choice for consumers in a range of markets especially those for essential goods and services
  • Create diversity in business, withbusiness strategies for a healthy, balanced economy that take a longer-term view and act as a counterbalance to mitigate systemic risk to the economy
  • Create business structures for public service providers that keep them accountable to their users and taxpayers, reducing centralisation and bureaucracy
  • Provide more than just an economic benefit to local communities by aiding social bonding and stakeholder empowerment
  • Rebuild and maintain public trust in business

Published today, the UK Mutual Economy Report makes a number of policy recommendations for increasing the contribution of co-operative and mutual business to growth, prosperity and fairness.

The All-Party Group calls on all parties to encourage:

  • Greater recognition and policy understanding of the sector by national and devolved politicians;
  • A commitment to an enabling legislative environment for the sector in the UK and
  • An understanding of where regulation disproportionately affects the sector and a commitment to address this where it occurs

Parliamentary Group Chair Gareth Thomas MP said:

Whether it is through providing rewarding work, strengthening community enterprise, or supplying affordable and sustainable services to consumers, this report clearly shows that a strong network of co-operative and mutual businesses plays an important part in a diverse and modern British economy.”

View the report

Australian Parliament passes reforms for co-operatives and mutuals

On Thursday the Australian Parliament passed the Treasury Laws Amendment (Mutual Reforms) Act 2019.

This is the culmination of three years work by Mutuo, the Australian Business Council of Co-operatives and Mutuals and an unprecedented collaboration between mutual businesses across industry sectors.

It is a major step forward for Australia, delivering new landmark legislation and the first positive change to the Corporations Act for mutuals in 18 years.

• The mutual definition in the Corporations Act now identifies the importance of the sector as part of a diverse economy.
• New mutual capital instruments will facilitate growth and innovation of mutuals helping them to compete with listed businesses.
• All of this achieved whilst mutuality is safeguarded for future generations by ensuring member control remains paramount.

Mutuo’s Chief Executive, Peter Hunt, said:
“This success reflects the willingness of the Australian sector to work positively and provide leadership for mutuals. The story in Australia is inspiring. In just a few years, the way mutuals are seen and understood by the government and opposition has been transformed.”

“We have also enjoyed ongoing and sustained support across the political landscape, from the government as well as opposition parties. The Australian sector has shown how a well executed strategy can deliver real improvements to the business environments for co-operatives and mutuals.”

Find out more about the Act.

Launch of updated BCCM Sector blueprint

We’re pleased to announce the launch of the updated Business Council for Co-operatives and Mutuals [BCCM] Sector blueprint.  Conceived and produced by Mutuo, BCCM’s updated strategy document reflects the success of its advocacy over its short history as well as the new priorities of the Australian co-operative and mutual sector.

View the document

BCCM-Mutuo Advocacy App

We’re proud to announce the launch of the new Business Council for Co-operatives and Mutuals [BCCM] Advocacy App. The App is the first of its kind and represents a deep collaboration between the BCCM and Mutuo.

For the first time, a national peak body for co-operatives and mutuals has taken the step to communicate with its members in a new and innovative way.

The App, which is available only to BCCM members, provides a quality new service to the membership. The App’s simple format allows members to access key talking points, news and briefing from across the entire co-operative and mutual sector in Australia.

For example, if called on to speak about the benefits of mutuality in your sector the App can provide key talking points and statistics at the touch of a button.

We think this a great way for the co-op and mutual sector to get its message out and we’d love to help you develop a similar App in your country.

Talk to us today about how we can help produce an App for you.

Mutuo project delivers draft legislation for Australian mutuals

On Monday the Australian Government released a second draft Bill to create a new capital instrument for co-operatives and mutuals.

The new legislation when fully enacted will allow co-operatives and mutuals to raise capital and compete on a level playing field with investor-owned firms. The first of the two Bills will be introduced into Parliament in the first week of December, and the second in February 2019.

Peter Hunt, Mutuo’s Managing Partner said, ‘This is the culmination of three years work with the Business Council of Co-operatives and Mutuals (BCCM), building on a carefully designed and executed political strategy.’

Success in this project will mark the seventh time that Mutuo has brought about the enactment of new legislation to improve the business environment for co-operatives and mutuals, in different jurisdictions.

BCCM Chief Executive, Melina Morrison said, ‘Today we are delighted to see the final tranche of draft legislation that will help to deliver on the Government’s promise to our sector. The bipartisan nature of this process has been very encouraging.

This will enable co-operatives and mutuals to grow and better serve Australians, whilst protecting their co-operative or mutual ownership structures.”

The consultation can be viewed here:

Treasury Laws Amendment (Mutual Entities) Bill 2018: 

Australian government publishes draft legislation for mutuals

  • Mutuo partnership with BCCM delivers first ever Federal legislation for mutually owned businesses
  • Draft Bill opens for consultation ahead of introduction in Parliament in November
  • Treasury announces a second Bill will follow to introduce new capital raising instruments

Following three years’ work with the Business Council for Co-operatives and Mutuals (BCCM), Mutuo has today welcomed the publication of draft legislation that begins the process of modernising the Federal law for mutual businesses in Australia.

The legislation forms the first part of a two-phased approach to improve the business environment for mutually owned firms and improve their ability to compete on level terms with investor-owned corporations.

The draft legislation provides a definition of a mutual entity to recognise the sector in the Corporations Act and to determine which companies will be able to raise capital through the issuance of mutual capital instruments.

It also addresses the uncertainty in Part 5 Schedule 4 of the Corporations Act to enable mutually-owned credit unions and banks to raise capital by providing that the enhanced demutualisation disclosure requirements are only applicable where an entity no longer meets the definition of a mutual entity.

Mutuo Managing Partner Peter Hunt said,

‘This is a big day for Australian co-operatives and mutuals. It is the result of Mutuo’s careful strategy to influence government, which has been deployed with a leading group of 13 Australian mutual businesses through BCCM.

BCCM was only created in 2013.  In five short years, under the inspiring leadership of Melina Morrison, it has successfully brought together mutually owned businesses from across Australia to take their rightful place on the Australian business stage.

It has made the case for an improved business environment, first gaining political support in the Australian Senate, and now resulting in landmark legislation from the Federal Government.  All the time, this has been achieved with the enthusiastic support of politicians from across the political spectrum.  It is a case study in influence for the global co-operative sector.’

More homes; more voice – Member-based social housing

Cliff MillsIn his latest Mutuo think piece, Cliff Mills talks about the policy opportunity for mutual social housing.

There are two clear challenges for social housing today which are making it one of the top political priorities.

The first is the need to build more homes: homes that people can afford, and are of the quality that people want to live in.  The second is to give tenants a voice in how housing is provided, which includes the ability to have influence over things that impact on neighbourhoods and communities, and being able to use this voice as a mechanism for ensuring that social housing providers are accountable to communities.

Housing is more than one issue.  It cannot be separated from jobs, health and well-being, elderly care, fuel poverty, environmental issues, community safety, education and training, and much else besides.  Homes are part of neighbourhoods and have to be understood in their context. The success of housing can only be measured in this bigger context, and in interaction with that context.

Policy-makers can and should do what they can, seeing things from their strategic vantage point. But since 2000 there have been some radical developments from within the social housing movement itself which it is time to take note of, because they could make a significant contribution in meeting today’s challenges.

These developments involve a democratic member-based approach, giving individuals a voice in their organisation, sharing power beyond the board and senior executives, and at the same time making governance more robust. 

There are now eleven democratic member-based housing providers in England and Wales, which together provide over 85,000 homes. A recently released corporate strategy by one of these organisations (discussed further below) outlines how it will be delivering services and what its ambitions are over the next ten years. This document provides evidence of the relevance of this approach in meeting today’s pressing challenges.

Read ‘More Homes More Voice’

Mutuo working with Consumer Co-operatives Worldwide to develop business sector policy guide

Mutuo is developing a business sector policy Guide for Consumer Co-operatives Worldwide.  This will be an opportunity to address regulatory, legislative and policy barriers to the development and growth of consumer co-operatives around the world.

Its principal use will be to develop coherent policy positions that can be used at a global, regional and national level.

Detailed survey work of CCW members will begin shorty and we look forward to engaging with members to identify the priorities of the consumer co-operative sector.

The document builds on Mutuo’s previous policy work in producing the International Co-operative Alliance Global Manifesto in 2017.

The business sector policy guide will be published in summer 2018.

Consumer Co-operatives Worldwide (CCW) unites, represents, and defends the interests of 26 national organizations of consumer co-operatives around the globe, which represent 75 million individual members, and which register a combined total annual turnover of more than 500 billion EUR.