Batting for the City: Do the Trade Associations get it right?
Published by the Centre for the Study of Financial Innovation, with the Wealth Management Association (formerly APCIMS)
Number of Pages: 36 | ISBN 978-0-9570895-7-0
Who speaks for the City? When David Lascelles and Mark Boleat asked the question for the CSFI in 2002 they identified no fewer than 50 trade associations: a mix of broad institutional bodies and sectoral specialists. Their study found that the landscape, though ostensibly cluttered, in practice served the multifarious interests of the UK’s financial services industry rather well.
A decade later, the industry is in the midst of its biggest overhaul in a generation. In particular, five years after the financial crisis, it faces an avalanche of new regulation from Westminster, Brussels and beyond. On the global stage, London is also struggling to maintain its status as the world’s leading financial centre. Swathes of jobs in the industry are disappearing: more than 130,000 since 2008. And financial scandals over the past year – resulting in multi-billion pound banking fines – have wounded its reputation.
In 2011, financial and insurance services contributed £125.4bn in gross value added to the UK economy – some 9.4 per cent of the UK’s total. Politicians are increasingly vocal about the need for more economic diversification; but even so, the City (meant in its wider sense, as the finance industry nationwide4 ) is certain to remain a central pillar of the economy. So the question of how best to represent its interests is a crucial one.
This paper is the result of many interviews and conversations over the past few months with trade association officials, representatives from their member institutions and regulators, conducted on the basis of anonymity. It has two aims. The first is to produce a directory of the many TAs active in the UK financial sector. And the second is to explore some of the questions about what constitutes effectiveness and whether the landscape might benefit from structural change.
Contents of this report
Dr Tim May, Chief Executive Officer, Wealth Management Association (previously APCIMS):
"With the landscape of financial services having suffered tremendously from various crises resulting in a lack of trust – and with both the UK and European regulatory structures having moved on significantly over the last five years – I felt it was important to review the TA space again. I think what Keyur Patel has brought together is a very useful overview of the current TA space – with Section 6 recommended as a thought-provoking read on where the space could begin to evolve from today."
In the media
Financial Times, Lombard | Jun 12, 2013
FT Adviser | Jun 20, 2013
Portfolio Adviser | Jun 12, 2013
Business Money | Jun 13,2013
Financial Times (full article):
"Do as I say, not as I do. The City is a fan of consolidation in business, but not when it comes to the trade bodies that lobby on its behalf. An astonishing 47 trade associations represent UK financial services, according to a report from the Centre for the Study of Financial Innovation.