Ed Richards, former chief executive of Ofcom, led the independent review of financial services trade bodies which began in October last year.
He said there was considerable overlap of membership of existing trade associations which had an underlying common interest. Richards recommends that seven trade bodies merge together to create one association. The super-association would include the CML, BBA, Payments UK (PUK), The UK Cards Association (UKCA), the Asset Based Finance Association (ABFA), the UK Payments Administration (UKPA) and the Financial Fraud Action UK (FFA UK).
The Building Societies Association and the Finance and Leasing Association declined to be part of the proposed integration. Richards said that while he respects their views he recommends they adopt a closer working relationship and co-ordinate their activities with the newly-merged body.
Richards proposes that a ‘brand new’ organisation is created to allow it to establish its own style and objectives
He said his main reason for recommending the merger was to improve the effectiveness of trade bodies but added that his proposal would provide a cost-saving for members.
The CML said it would vote on the proposals in the first quarter of 2016.
In a statement the CML said: “The £1.3trn UK mortgage sector represents the largest single element of UK retail financial services. The CML’s objectives in working through the change proposal will be to ensure that any change in trade body structure would represent an improvement for mortgage lenders; that it would be effective in terms of its services to members; that it would maintain the market coverage that the CML currently has, effectively representing the very broad church of lenders of all sizes and types; and that it would be able to act and speak on behalf of a unified industry.”
