The Association of Financial Mutuals’ incoming chief executive has welcomed a Bill aimed at making demutualisation more difficult.
The AFM announced Andrew Whyte (pictured) would be taking over as chief executive from Martin Shaw at the start of next year.
A former director of communications at the Financial Conduct Authority, Whyte has also worked across a number of different government departments and s head of corporate and public relations at the BBC for seven years.
But before taking up his role, Whyte spoke to Health & Protection to give his approval to the Treasury’s backing of a Bill to make demutualisations more difficult.
“The recognition that a strong mutual and cooperative sector is good for consumers and society was very welcome and provided a great reward for the hard work by AFM and its members in recent months, to argue the case for reform,” Whyte said.
“This bill takes that reform work forward, but there is a lot more to do, and it is vital that the government commits to the broader review of legislation.
“After all, an asset lock might protect a successful mutual from unwelcome bids but will not in itself ensure it continues to access the capital to grow and to be successful,” he added.
Once Whyte has taken over full responsibility for running AFM, it is expected that outgoing chief executive Shaw will remain in a part-time, policy-focused role to provide support.
Shaw has the led the AFM since it was formed in 2010. He told the AFM board of his plan to step down by April 2023 earlier this year.
AFM chairman Stuart Tragheim, who is also CEO of Holloway Friendly, said the AFM board undertook an extensive recruitment process.
“Andrew stood out from the rest, through both his very relevant experience and his natural capacity to lead the trade association in an imaginative and empathetic way,” he said.
“The board look forward to working with Andrew on some of the key opportunities and challenges facing the sector currently, including the development of new legislation, and our calls for balanced regulation.
“We also plan to build on the recent positive work of AFM, to promote awareness of the benefits of mutuality, and to equip our people with the skills and knowledge to do their job effectively.”
Whyte added: “I am honoured to be appointed as chief executive of the AFM. The ethos of the mutual movement has never been more important than now – putting members’ interests above all else, giving consumers genuine choice and helping to promote a competitive and vibrant financial services industry.
“AFM has a vital role to play as an energetic and articulate advocate for the sector and I am incredibly excited by the opportunities ahead.”
He added that Shaw had done a remarkable job leading the AFM and was pleased he will continue on with the AFM.