Investment Association (IA) interim chief executive Guy Sears has taken steps to ensure the trade body’s “financial sustainability” after it posted a financial loss last year.
The IA’s 2015 accounts show the organisation posted a loss of £19,794 before tax, compared with a £370,644 profit the year before.
The trade body restructured into three units at the end of last year after member groups expressed concern at its strategy. The IA said this move was also made to reduce costs.
“The IA would have breached its policy on reserves if no cost reduction had been made”, the body said in its annual report.
Staff costs were the greatest burden on the group, rising to £7.3m from £6.2m. This included a £257,000 “loss of office” payout for former chief executive Daniel Godfrey. Mr Godfrey, forced out by members at the end of 2015, saw his total pay rise from £533,000 to £774,000 as a result.
Chair Helena Morrissey said: “In addition to taking measures to secure the IA’s financial sustainability, [Mr Sears] was able to deliver a restructure of the organisation that simplified and enhanced its design.”
Incoming chief executive Chris Cummings, founder of lobby group TheCityUK, is expected to join the IA “by the end of the third quarter”, the report added.