The Investment Association (IA) recently announced that its chief executive Daniel Godfrey had stepped down from his role with immediate effect.
While the search is on to find a replacement, industry sources have suggested the decision was because of disagreements around his agenda for reform.
Recently it was reported that big names like Schroders and M&G had decided to quit the trade body amid criticism from the industry that its reform agendas had been “too aggressive.”
Both of those firms will continue their IA membership until the end of this year but do not plan to renew it in 2016, according to a source close to the deal.
With big names pulling out of the IA, there is a risk to the data that is available to advisers, which is typically listed according to IA-stipulated sectors.
FE, which provides the fund performance statistics published in the back pages of Money Management, is monitoring the situation.
Tahmina Mannan, market and industry content editor at FE said, “We are liaising with fund managers to determine their position regarding continued membership of the IA. We also work very closely with the IA and take their guidance regarding membership of IA sectors.”
She added that FE was keeping a close eye on the situation with the departure of Mr Godfrey “but at this stage has no firm plans for any changes.”
Meanwhile, Guy Sears, the IA’s director for risk, compliance and legal affairs, will take on the role as interim chief executive until a permanent replacement is found.
Helena Morissey, chair of the Association, said in a statement that the IA needs a chief executive who has a good relationship with organisations around the world at a difficult time for the financial services industry. She added that the selection process may take until next year.
The Labour shadow pensions minister, Nick Thomas-Symonds, spoke in support of Mr Godfrey saying he pushed forward consumer-friendly initiatives. “The news that Mr Godfrey is standing down after failing to reach agreement over publication of costs shows that it is now clear not all fund managers will sign up to a voluntary agreement,” he said.