The announcement comes hot on the heels of an independent review of financial services trade bodies headed up by former Ofcom boss Ed Richards.
The review recommends that a ‘brand new’ organisation is set up to replace a number of the UK’s financial services trade bodies. Richards has proposed that the new body should be allowed to establish its own style and objectives.
HSBC is also close to making a decision on whether to remain headquartered in the UK, after it said higher bank levies had forced it to reconsider where it based its main office.
A spokeswoman for HSBC said: “Given the anticipated creation of a new financial services trade association, we have given one year’s notice to the Council of Mortgage Lenders and our membership will end on 31 December 2016.
“HSBC supports the creation of a new trade association which will better serve all providers in the financial services sector and most importantly, our customers. We have and continue to value our work with the CML and believe a strong mortgage voice is critical within any new association.”
The CML represents around 95% of the UK’s mortgage lenders. Its members are planning to vote on the proposed trade body merger in March.
A spokeswoman for the CML said it could not comment on individual trade bodies’ intentions for the future.
“It’s rather early days as we’re still yet to vote on whether there should be a new single trade body structure,” she said.
Some of the trade bodies included in the proposals are the CML, British Bankers’ Association (BBA), Intermediary Mortgage Lenders Association (IMLA), Payments UK (PUK), The UK Cards Association (UKCA), 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.
The Financial Services Trade Association Review declined to comment on the announcement.
