Barclays was one of the original nine lenders to drive an independent review helmed by the Trade Associations Review into a trade body merger, alongside nine lenders including Lloyds, HSBC, Santander, RBS and Nationwide.
Barclays said: “We support the creation of a new trade association which will better serve all providers in the financial services sector and most importantly, our customers. A strong mortgage voice is critical within any new association.”
Both Barclays and HSBC, like are believed to be attached to a one-year notice period plus exit fee on leaving the CML where others may simply leave at any time with no fee attached.
The merger was first suggested in an independent review in the summer drew in a raft of bodies including the British Bankers’ Association and the Intermediary Lender Association (IMLA), among others. The Association of Mortgage Intermediaries and the Building Societies Association are not under review.
The CML is waiting for its members to vote in March on the trade body merger and until then the future is unclear.
Yorkshire Building Society called it ‘premature’ to review its membership and Aldermore said it had no immediate plans to leave.
A CML spokesperson said: “No-one currently knows for certain what the CML’s position will be at the end of 2016, so taking account of this uncertainty is a perfectly reasonable route to take on the part of those members subject to the year’s notice plus exit fee. Different lenders took different approaches on this, reflecting the uncertainties.”
“In the meantime, all our members have assured us that they remain fully committed to and engaged with CML work during 2016, and we are grateful both for their support and their ongoing commitment to business as usual in terms of our work during this period of uncertainty.
Ed Richards, former CEO of Ofcom, who began the independent review in October last year said there was considerable overlap of membership of existing trade associations which had an underlying common interest.
He recommended 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).
