Latest Press Releases and Comments
Here we cover all the very latest news. If you have a specific enquiry or something you’d like to find out about, please get in touch. Contact Martin Shaw at AFM via email email@example.com or call 0788 754 7195.
18 April 2012
Financial companies ‘Owned By You’, are trusted by you
New research shows people trust mutuals, but not plcs
People are far more likely to trust a financial mutual than any other type of financial services provider, including shareholder-owned high street banks according to new consumer research revealed by The Association of Financial Mutuals (AFM) today.
When asked to rank financial mutuals and financial plcs on a trust scale of 1-10, financial mutuals received a ‘Net Trust Score’ of +32%, compared to financial plcs, which registered -5%, clearly demonstrating that whilst a vast majority of people trust mutuals with their money, the same cannot be said for shareholder-owned companies, who people lost confidence in during the financial crisis.
AFM is today launching a new consumer website called Owned By You (www.ownedbyyou.org) encouraging people to take a more active role in organisations that they own and to provide clearer information about financial mutuals, explaining the fundamental differences with shareholder-owned organisations and the benefits to their customers that result. The site is aimed at both the 20 million members who own a stake in mutuals in the UK, but also at consumers who have not necessarily understood that mutuals mean the organisation is owned by, and run for, the benefit of its customers.
Talking ahead of the launch of Owned By You, Labour MP and Chair of the Business Select Committee, Adrian Bailey MP said:
“One of my criticisms of the [mutual] movement in the past, is that it has not shouted its difference from the rooftops even though it’s got a very good story to tell…The public do, increasingly, appreciate the difference between mutuals and the proprietary sector.”
He added, “This website will go some way to promoting the idea, getting greater understanding of it, and hopefully strengthening the sector.”
Jonathan Evans, Conservative MP and Co-Chair of the All Party Parliamentary Group on Building Societies and Financial Mutuals stated:“I think it is very important that there should be diversity in financial services… Those companies that are actually owned by their policyholders or their depositors, have shown for more than a hundred years that it is a very successful model. That’s why I think the development and the retention of mutuals is so very important.”
Martin Shaw, Chief Executive of the Association of Financial Mutuals, commented:
“The financial crisis meant that many people lost confidence is large parts of the financial services industry, and that this is proving very slow to return. The Prime Minister said recently that we need a better model for business, to get people more engaged- our research shows that we have a solution, in the mutual organisations which people so clearly trust.
“At a time where the public’s perceptions of financial services remain woefully low, we hope that the new website, Owned By You, will help people gain more of the knowledge and tools they need to become more engaged in the way organisations they own are run. We expect that society as a whole is better when the mutual sector is stronger.”
Notes on Net Trust Score
Research conducted by Opinium Research on 28/ 29 January 2012, with a nationally representative sample of 2,010.
Respondees were asked to rate financial mutuals and financial plcs on a scale of 0 to 10, where 0 meant strongly distrust, and 10 meant strongly trust.
The average score for mutuals was 6.0, for plcs 4.6. The breakdown of scores was:
% Mutual plc
Distrust 10 28
Neutral 36 38
Trust 42 23
Unsure 12 11
The net trust score is derived from deducting the proportion that distrust away from those that trust.
Notes on Owned By You, www.OwnedByYou.org
Owned By You is an information website for the members of mutual organisations. It has been produced by the Association of Financial Mutuals, the trade body that represents financial mutuals in the UK. It uses content generated by members as well as independently, to provide a rich source of information about the sector in a format that is accessible to consumers.
AFM retains its b2b website, www.financialmutuals.org, and continues to invest in children’s education through www.funtosave.org(for 4 to 7 year olds) and www.savingsquad.org(for 7 to 11 year olds).
Follow us on twitter: @ownedbyyou
For further information please contact:
Rimmi Shah/ Simon Alderson
020 7294 3670 / 020 7294 3680
Martin Shaw is available for comment if required.
22 February 2012
Losses from Lloyds and RBS demonstrate acute need to overhaul the bonus system, says Association of Financial Mutuals CEO, Martin Shaw
New research shows strong public support for stopping bonuses in loss-making organisations and publishing top executive pay
Stability of a financial organisation is the joint second most important factor for consumers when choosing where to save or invest
As Lloyds and RBS prepare to report combined losses of £4 billion this week, despite showing a willingness to pay six and seven figure bonuses, new research from the Association of Financial Mutuals reveals strong public support for curbing excessive and irresponsible remuneration and bonus payments.
Martin Shaw said, “It will come as a shock to many that organisations who fail to make a profit can justify paying their top executives vast bonuses. The Government must commit to looking very carefully and comprehensively at the bonus culture – not just within our private sector organisations – but in the public sector too, to ensure that they are used proportionately and as intended: a reward for exceptional performance.”
New research commissioned by the Association of Financial Mutuals shows strong public support for greater transparency of top executive remuneration in financial organisations, and a clear link between company performance and bonuses.
Over half (51 per cent) of respondents supported either a complete ban on bonus payments unless the organisation was making a profit, or that details of top executives’ pay and bonuses must be made publicly available. Nearly one fifth (18 per cent) supported both of these measures being implemented.
Stability was also revealed as the joint second most important factor, on a par with access to a local branch, that consumers consider when choosing where to save and invest their money.
Shaw added, “This ongoing furore over bonuses in part publicly-owned or funded organisations – especially loss-making ones – shows that taxpayers demand a say in top people’s pay. This is exactly the kind of shareholder activism that will make companies more accountable to their owners.
“There is also a growing realisation from consumers and politicians that the capitalist business model has lost its moral compass and is in need of urgent repair, and that the Government should actively support the growth of other forms of business model – such as companies owned by their staff or customers.”
“There are two positives to take from recent events though”, Shaw noted. “Firstly, Lloyds claiming back some past bonus payments – if adopted more widely – could mark a step-change in remuneration policy for top executives, holding them to closer personal account for the business decisions they take, even in retrospect. This is a must going forwards.”
“Secondly, in opposition the Conservative Party committed to disclosing the number of employees in banks on high salaries. The Chancellor has failed to act on this in Government, but this research shows he has a clear mandate from the electorate to do so.”
03 February 2012
Greater transparency and responsibility over executive remuneration demanded by the public, according to new research by AFM
New research commissioned by the Association of Financial Mutuals shows strong public support for greater transparency over top executive remuneration in financial organisations and a clear link between company performance and bonuses.
Over half (51 per cent) of respondents supported either a complete ban on bonus payments unless the organisation was making a profit, or that details of top executives’ pay and bonuses must be made publicly available. Nearly one fifth (18 per cent) supported both of these measures being implemented by financial organisations.
To see full story, follow this link
13 December 2011
Association of Financial Mutuals welcomes a number of new members
We are pleased to announce that CUNA Mutual and the Veterinary Defence Society have become Full Members of AFM.
In addition, we are pleased to be joined by new Associate members: Frontier Investment Management, J.P. Morgan, Littlejohn LLP and Norton Rose.
This brings total membership of AFM to 56 full members and 32 Associate members.
05 November 2011
Comment on Government and FSA responses to the Treasury Select Committee’s report on the RDR
Commenting on the Government and FSA responses to the Treasury Select Committee’s report on the RDR, Martin Shaw, Chief Executive of the Association of Financial Mutuals, stated:
“It's good to see that the Government has acknowledged the confusion over how much VAT will be payable as a result of the RDR’s implementation; we hope to see further clarification on this soon and we welcome HMRC’s intention to meet with the industry.
“Considering the overarching objective of the RDR is to increase both the quality of advice delivered and the transparency around paying for it, it is crucial for the industry to understand what the regulator envisages a 'low cost simplified advice' regime will look like for consumers and that they consult properly with the industry in order to achieve the best possible outcome for consumers.
“It is right that the Government has not agreed to the twelve month delay the TSC report recommended. At a time of regulatory change, the industry needs as much certainty as possible and preparations for the RDR’s implementation are well underway. The FSA needs to move ahead quickly now to ensure the regulation is in good shape upon implementation.”