AFM launches to improve governance
The newly formed Association of Financial Mutuals has vowed to improve corporate governance and grow the sector in the next year.
The Association of Friendly Societies and the Association of Mutual Insurers officially merged at the turn of the year to form the AFM trade body, pledging to represent the interests of the UK's financial mutuals sector.
Martin Shaw, previously general secretary of the Association of Friendly Societies, has been appointed as chief executive while Mike Yardley, chief executive of Royal London Group, will be the group's Chairman. Further appointments will be announced in the coming months.
Martin Shaw, chief executive of the Association of Financial Mutuals, said the new organisation's goals included influencing the manifestos of the main political parties ahead of the general election, protecting and promoting the values of the mutual sector and responding to the retail distribution review proposals.
He said: "The mutual sector has proved its strength through the recent financial crisis, continuing to innovate and provide value to its customers and we need to keep on doing this."
Mr Shaw said there would be many prevalent issues on the association's agenda but not least would be to continue to promote the values of the mutual sector to our customers and the public at large.
He said: "It will also be of paramount importance to protect what mutuals stand for and ensure the government supports and recognises some of our initiatives, such as the corporate governance code we have developed.
"As a single association that speaks for more than 98 per cent of all mutual insurers, the new AFM will be able to engage even more effectively with the government, regulators and other policymakers."
Jo Roberts, director of Surrey-based Need An Adviser, said: "When people merge it is generally so they can expand their database and cut costs. It should open up more benefits for most members, increase knowledge and technical support."
Leonard Warwick, chairman of Cheltenham-based Warwick Butchart Associates, said: "These are mutual organisations, there is clearly common ground, common problems and opportunities and they will represent that to regulators and government."
