Daniel Godfrey’s resignation as chief executive of the Investment Association (IA) has not removed the threat of fund groups ending their membership of the organisation.
Investment Adviser understands Mr Godfrey’s departure has not been enough to sway M&G from its intention to leave the trade body at the end of this year, despite expectations that the chief executive’s resignation will prompt the IA to adjust its focus.
Schroders, the other major fund group set to leave at the end of 2015, has remained tightlipped over whether the resignation represents a large enough olive branch.
But the IA is understood to acknowledge that more is required to convince uncertain members that its future intentions will chime with their own.
This week’s controversy has caused a variety of complaints to emerge into the open, many of which will be difficult to overcome in short order, sources suggest.
One senior figure at UK fund firm said he had only begun to consider the possibility of departing the IA this week, following the news that M&G and Schroders planned to do so. The source was sceptical as to whether the trade body could do enough to stem thoughts of this nature among his peers.
The IA confirmed Mr Godfrey’s resignation as chief executive this morning after an emergency board meeting yesterday – prompted by the news M&G and Schroders would not renew their memberships when they expire at the end of 2015.
This, and expectations other asset managers could follow suit, led to the Mr Godfrey no longer having the full support of the board. It is understood the IA became increasingly concerned about comments from members regarding dissatisfaction with the leadership.
The news came as the trade body’s annual results, released on Companies House earlier this week, showed a jump in profits fuelled by a 22% rise in full membership revenues.
Following the news regarding M&G and Schroders, Godfrey had said the IA would “do everything we can” to convince asset managers considering a departure to change their minds.