HSBC quits the CML

HSBC quits the CML

HSBC has given notice to the Council of Mortgage Lenders it will cease its membership at the end of this year.

A spokesman for bank 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.”

In November, proposals were published recommending the creation of a brand new trade association by integrating the remits, skills and capabilities of the CML, British Bankers’ Association, UK Cards Association and Payments UK.

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HSBC stated it supports the creation of this new trade association, adding: “We have and continue to value our work with the CML and believe a strong mortgage voice is critical within any new association.”

A spokesperson from the CML noted that it continues to represent around 95 per cent of the market.

“However, you will be aware of the review of financial trade associations – and the reviewer’s recommendations that CML, BBA, PUK, UKCA and ABFA should cease their independent structures and amalgamate into a new trade body.

“The trade bodies’ memberships are currently making decisions on this (our members will vote on the proposal in March), so the trade body landscape could look very different next year.”

Responding to rumours that it was also on the way out, a Barclays spokesman confirmed the bank will remain a member of the CML during 2016 and will participate fully.

“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.”

The CML is not the first financial services trade association to have important members leave recently, with the Association of British Insurers seeing Aegon UK quit in September, just over a year after Legal & General made the same move.

Meanwhile, Investment Association chief executive Daniel Godfrey resigned after several high-profile members threatened to leave.

Just this week, the Association of Professional Financial Advisers latest accounts revealed a loss of £30,000 during the year to June 2015, partly down to the departure of Openwork in May.