HSBC to leave CML ahead of trade body merger

The trade body, which was first proposed in November, would be formed from a merger of the British Bankers' Association, the CML, Payments UK and the UK Cards Association.

The CML announced that its Executive Committee will consider the proposals. In the first quarter of 2016 CML members will decide by vote on whether the CML should become part of the proposed new structure.

HSBC is due to hold a board meeting this week to determine whether it will move its headquarters out of the UK.

A HSBC spokesperson 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.”

Ed Richards, who leads the Financial Services Trade Associations Review, said:

“There are real benefits from creating a more unified body to speak for this crucial area of the economy. A new trade association would be able to represent the industry more effectively because its voice would carry greater weight. Having a single point of contact will also be welcomed by policymakers and will reduce duplication of effort.

“However, it’s important that the new association is organised along devolved lines. We need to make sure specialist expertise is preserved and a diverse membership is properly represented while still gaining the advantages from having a bigger organisation.”