The next step for LV= is calling a court hearing on the scheme of arrangement.

Should the outcome of this hearing be positive, LV= would then convene a special general meting to enable members to vote on the acquisition proposals.

Should members vote in favour, LV= would then need to turn to court for a sanction hearing.

The FCA said it has no objections “at this stage” to LV= proceeding to the court but added that it will “continue to scrutinize” LV=s proposals and activities should the court confirm that the member vote can be convened as planned.

LV= announced the acquisition by Bain in December but has faced resistance.

The MP members of the parliamentary group for mutuals wrote to the governor of the Bank of England in May asking questions about the Bank’s interactions with LV= and sharing concerns about the potential de-mutulisation of the investment, insurance and pensions provider.

LV=’s articles of association need to be changed via a scheme of arrangement in order to transfer the ownership of the business to a Bain Capital-controlled entity, effectively demutualising the provider.