The Building Societies Association and the Association of Financial Mutuals have launched a four-pronged manifesto to help consumers get a fair deal from financial services.
Action from government and regulators ahead of next year’s general election to fix the regulatory and legal imbalance that could stifle the mutual sector, has been called for from campaign groups representing building societies and mutual insurers across the country.
‘A Manifesto for Financial Mutuals’ calls for: a fair deal for customers; a level playing field for financial mutuals; a rational approach by regulators to capital, and a more coordinated approach to promoting mutuals that creates a stronger savings culture and tackles the housing crisis.
David Cutter, chairman of the BSA, outlined the manifesto in his speech at the BSA Annual Lunch yesterday (13 November).
“At the top of the list are three crucial tasks. Firstly, an explicit requirement to be placed on our regulators to set regulation which is appropriate and proportionate for different organisational forms.
“Secondly, an extension to the current requirement on the regulators’ statutory competition duty to include specific consideration of the impact of regulation in fostering diversity of financial providers.
“Thirdly, removal of the restrictive barriers to raising mutual capital, making it easier for financial mutuals.”
Mr Cutter added: “The manifesto also calls for the lowering of the barriers to entry for new financial mutuals in line with what has already been done to facilitate new banks, plus more joined up policies to promote mutuals, creating a stronger savings culture, and tackling the issue of housing.”
Robin Fieth, chief executive of the BSA, said of the manifesto: “There is a widespread consensus that a diverse financial sector benefits consumers and the economy alike.
“Therefore, it is a bitter irony that in the effort to address poor behaviour by some plcs and prevent another financial crisis, the resulting legislative and regulatory framework threatens to undermine rather than support corporate diversity.”
ruth.gillbe@ft.com
