The Council for Mortgage Lenders (CML) is set to vote on the recommendations of a review put together by leading banking institutions. The review calls for a merger of five different trade associations to create a “world class trade association”.
The Financial Services Trade Associations Review has recommended a merger of the Council of Mortgage Lenders, Payments UK, the British Bankers Association and the UK Cards Association with The Asset Based Finance Association brought in soon after.
The report, launched by Barclays, HSBC, RBS and Santander amongst others, also says the new body would then forge a new relationship with UK Payments Administration and Financial Fraud Action UK.
Ed Richards, who led the review said: “There are real benefits from creating a more unified body to speak for this crucial area of the economy. A new trade association would be able to represent the industry more effectively because its voice would carry greater weight. Having a single point of contact will also be welcomed by policymakers and will reduce duplication of effort.
“However, it’s important that the new association is organised along devolved lines. We need to make sure specialist expertise is preserved and a diverse membership is properly represented while still gaining the advantages from having a bigger organisation.”
The new body would have devolved boards for different areas such as mortgages, payments and cards, and wealth and asset management. There would also be committees for digital innovation, UK Challenger banks and financial crime amongst others and advisory groups for consumers, and small and medium enterprises (SMEs).
Members of the CML will vote on the proposals in the first quarter of 2016.
