Financial mutuals launch plan to get a fair deal for consumersThe Building Societies Association (BSA) and the Association of Financial Mutuals (AFM) have today launched a four pronged manifesto to help ensure consumers get a fair deal from financial services.

Northern Ireland has one indigenous building society, Progressive which is also the largest locally owned financial institution with 12 branches.

The campaign groups representing building societies and mutual insurers across the UK have called for 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.

‘A Manifesto for Financial Mutuals, aims to level the playing field between shareholder controlled plcs and mutually owned providers. It calls for:

• A fair deal for consumers• A level playing field for financial mutuals• A rational approach by regulators to capital• A more coordinated approach to promoting mutuals, creating a stronger savings culture and tackling the housing crisis

Robin Fieth, Chief Executive of the BSA commented:“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.

“Ratcheting up regulation across the board is leading to a matrix of rigid rules that disproportionately affects mutuals. Instead, the differences inherent in the mutual structure should be considered side by side with other types of financial services businesses. Today we are setting out a plan to redress the balance and strengthen the mutual sector.”

Martin Shaw, Chief Executive of the AFM added:“Consumers are being left with little choice but to go back to the very firms that caused the last recession in the first place. Far from fostering diversity and ensuring the financial sector is more resilient, the present regulatory landscape is tilted towards a one size fits all model.

“It should be a national scandal that not a single new mutual has been set up since the last decade of the last century. Politicians need to translate their aspirations for greater diversity into concrete actions to help the financial mutuals sector to compete on level terms, and to deliver a fairer marketplace forFor further information please call Shane Finnegan or Caroline Murphy at Aiken PR on 028 90 663000

Editors’ notes:About the Building Societies Association (BSA)Originally established in 1869, the Building Societies Association or BSA is the voice for building societiesand for some other mutual financial service providers. Together these organisations serve over 20million customers up and down the length of the UK and have total assets above £330 billion.

Including their subsidiaries, they hold residential mortgage balances of over £240 billion - this equates to19% of all outstanding mortgages in the UK. They also hold more than £240 billion of retail deposits - 19% of all such deposits in the UK - including 28% of cash ISA balances. BSA members employ 39,000 full and part-time staff and operate through 1,550 branches as well as on line and via the phone.

The BSA’s objective is to push for the best outcomes for building societies and its other members from the plethora of new and changing regulation and legislation in the UK and Europe. To do this it works with, amongst others, the UK Government, the EU Commission, Council and Parliament and regulators, especially the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). In Europe it is a member of the European Association of Co-operative Banks (EACB).

About the Association of Financial Mutuals (AFM)We are a professional, trustworthy, authoritative trade body, committed to protecting and progressing the principles of mutuality. We endeavour to promote a better understanding of mutuals, encouraging mutual support and mutual approaches to business and public policy.Our purpose is to advocate the values of mutuality and through this, promote the expansion of the sector. We have 52 member companies in the UK and Ireland, providing protection, investment and healthcare products to over 20 million policyholders and our mutual insurer and friendly society members between them have over £100 billion assets.

Our Mission Statement:Our purpose is to enhance and accelerate development of a distinct, unified, strong and influential financial mutuals sector within the UK financial services industry to the benefit of all customers, and when necessary advance those views in Europe. Through development of a clear strategy, we help our members identify with, remain committed to and contribute significantly to mutuality, through promotion of best practice and customer involvement