Media and Public Affairs
All Party Parliamentary Group (APPG) for Building Societies and Financial Mutuals
The APPG has reformed since the start of the new Parliament and now has three joint chairs - Jonathan Evans MP (Con, Cardiff North, and until recently a non-executive at NFU Mutual), Baroness Maddock (Lib Dem), Cathy Jamieson MP (Lab/Co-op, Kilmarnock and Loudoun). Adrian Bailey MP (Lab/Co-op, West Bromwich West) stepped down as Chair as he has been elected as the Chair of the House of Commons Business, Innovation and Skills Select Committee.
The BSA Director-General appeared in front of the APPG at its first meeting on 13 July, to brief them on the key issues for the sector, including capital.
BSA at Party Conferences 2010
Mutuality and diversity in financial services will be on the party conference agenda this year as the BSA will be running events at all three of the main political party conferences.
At a series of events entitled Mutual financial services - how can financial services work in the public interest? The BSA, along with the Association of Financial Mutuals, the Association of British Credit Unions and The Co-operative Financial Services will debate diversity in financial services. As well as speakers from each of the sponsoring Associations, the following MPs and Peers will address their respective party events - Baroness Maddock (Lib Dem), Gareth Thomas MP (Lab/Co-op, Harrow West), Shadow Treasury Minister and Mark Hoban MP (Con, Fareham), Financial Secretary to the Treasury.
The events details are as follows:
Liberal Democrats - Liverpool
Tuesday 21st September, 1.00pm - 2.00pm, Hall 12, ACC.
Labour - Manchester
Tuesday 28th September, 12.30pm -2.30pm, Central 7, Manchester Central.
Conservatives - Birmingham
Tuesday 5th October, 12.30pm -2.00pm – Novotel Hotel.
Treasury committee launches inquiry into competition and choice in the banking sector
The Treasury Select Committee has announced a major inquiry on competition and choice in the banking sector, to which the Association is submitting written evidence. The Committee's terms of reference are to:
• assess the impact of the financial crisis on competition and choice in both retail and wholesale markets;
• assess the impact of widespread consolidation among banks and mutuals;
• examine the key barriers to entry inhibiting increased competition - including regulation;
• examine whether competition is inhibited by difficulties faced by customers in accessing information about products;
• explore the Government and competition authorities' strategy to increase competition in banking, including the likelihood that new entrants will successfully enter the market;
• consider the relationship between competition and financial stability;
• consider the impact of free banking on effective competition; and
• look at the role of foreign-based operators and whether they are likely to return to the UK.
The deadline for submissions is 12 noon on Monday 6 September 2010. The Committee intends to hold oral evidence sessions in the autumn. The Committee is also holding an Inquiry on the Government’s plans to change the system of UK financial regulation. A draft submission was circulated to members on 19 August http://www.bsa.org.uk/members/circular/7133.htm
Independent Commission on Banking
The Independent Commission on Banking has met twice since its launch in June. So far the Commission has confirmed it will publish an Issues Paper at the end of September, in order to stimulate public debate and invite submissions of evidence; and pending progress through the autumn, they intend to publish a further paper in the spring, setting out some of the Commission’s thinking and inviting further views.
BIS/HM Treasury consultation on financing private sector recovery
On 26 July, Vince Cable MP (Lib Dem, Twickenham), Secretary of State for Business, Innovation and Skills and President of the Board of Trade, and George Osborne MP (Con, Tatton), Chancellor, launched a paper to encourage an industry-led recovery by addressing the problems businesses face accessing finance. The following paragraph is taken for the consultation.
4.33 The financial mutuals sector in the UK comprises building societies, friendly societies, mutual insurers, cooperatives and credit unions. Mutuals play a strong role in local communities, building long-term relationships with members and often operating in areas of economic and social deprivation. The range of services offered by building societies and other mutuals has expanded as the legal framework has been updated, and in response to changes in technology and customer demand. The Government is interested in views on the role that mutuals could play in facilitating access to finance for businesses and providing greater choice in financial services.
Parliament Recess Dates
Summer - 27 July 2010 - 6 September 2010
Conference Recess - 16 September 2010 - 11 October 2010
Christmas - to be confirmed
