Schroders and M&G have agreed a “temporary” extension of their membership with the Investment Association (IA) after their possible departures sparked an overhaul of the trade body.
The two fund groups have opted to remain members of the IA for the next six months, rather than renewing annual memberships, in order to stay involved in the trade body’s ongoing consultation with members over its future priorities.
The pair’s dissatisfaction with the trade body, which first emerged in October, led to the departure of IA chief executive Daniel Godfrey. Several fund houses had hinted Mr Godfrey’s focus on cost and transparency initiatives had come at too great an expense to other work - a suggestion which attracted criticism from consumer bodies.
The IA subsequently appointed Guy Sears as interim chief executive, closed its regulatory affairs unit and restructured into three divisions in order to cut costs, and indefinitely postponed its statement of principles initiative.
Schroders and M&G were among a number of high profile groups not to sign up to the principles, which were to involve firms publishing statements detailing how they would meet ten pledges, the first of which was to “put client interests first and ahead of [firms’] own”.
A spokesperson for the Investment Association said today (December 23): “We are delighted that M&G and Schroders have agreed to a temporary continuation of their membership of the Investment Association whilst discussions about the IA’s governance and priorities are held by the association’s board.”
A Schroders spokesperson said: “Schroders continues to be a member of the Investment Association”.
The commitments mean St James’s Place is the only firm to have departed the IA, a move which formed part of the wealth manager’s decision to quit all its trade body memberships.
