UPDATE 1-Ex-CBI boss Lambert to chair new UK bank standards body

* New standards body created by UK's biggest banks

* Body will be independent and not lobby for banks

LONDON, Sept 19 (Reuters) - Richard Lambert, the formerdirector general of the Confederation of British Industry, hasbeen appointed by Britain's biggest banks to set up a newindependent body monitoring standards within the industry.

Lambert will design and chair the organisation, which willbe independent of the industry and will not lobby on behalf ofbanks, the chairmen of Barclays, HSBC, Lloyds, Royal Bank of Scotland, Santander andStandard Chartered said in a joint statement.

"The new professional body will be independent of the banks,and will cover all sectors of the industry. I hope it will besupported by all banks and building societies doing business inthe UK," Lambert said on Thursday.

The creation of the new body follows a recommendation inJune by the Parliamentary Commission on Banking Standards, agroup of lawmakers tasked with making proposals for reform ofthe industry.

The chairmen of the banks said Lambert had been asked toconsult with government, regulators, banks, employees andconsumer groups to develop the new body.

He will examine the need for new professional qualificationswithin the industry and consider how best to raise overallstandards of behaviour. He will also liaise with Britain'sfinancial regulator as it undertakes a review of its ApprovedPersons Regime, they said.

The chairmen said Lambert had been asked to submit hisrecommendations next year.