During the summer of 2017, the LSB undertook a governance review to explore the possible options for the future composition of the Board that would support the organisation in achieving its longer term vision and objectives.
A review was needed due to the evolving remit of the LSB and the merger of the two sponsoring trade bodies, the BBA and UK Cards into UK Finance in July 2017. The Board currently consists of independent directors and representatives of the banking and credit card industries; the chief executive is also a member of the Board. The CSA is represented on the Board by its chief executive, who has observer status.
The governance review focused on a number of key areas:
- what the composition and structure of the Board should look like
- whether the ‘sponsorship’ model was still appropriate, and how best to ensure that, in the absence of this model, how the Board retains engagement across the registered firm base; and
- how to ensure that the Board effectively engages with stakeholders across the consumer and small business landscape.
The consultation process ran from 2 May to 2 June 2017; as part of the review we engaged with representatives from registered firms, consumer groups, industry representatives, LSB Board members and other interested parties through meetings or via an online consultation.
The review made a number of recommendations which included:
- ending the sponsorship model;
- moving towards a wholly independent Board of between eight and ten directors; and
- setting up three Board advisory panels across personal, business and consumer bodies.
Work has begun on transitioning to the new board structure, the first element being implemented in the early part of 2018 with the appointment of two new independent directors with a focus on small business and personal customers.
We are immensely grateful to everyone who contributed to the consultation and for the ongoing support as we move to the new governance structure.