Andy Bell is to step down from the board of the company he created 27 years ago following talks with the Financial Conduct Authority over the risk of appointing a significant shareholder as a non-executive director.
Bell announced his upcoming departure as chief executive in June, when the firm also confirmed its intentions to appoint him as deputy chair from October.
The role of deputy chair is not one which needs to be approved by the regulator.
However, following the announcement in June, the FCA approached AJ Bell with its views on founder Bell - who holds a 22.8 per cent stake in the business - taking a seat on the firm’s board.
I accept the regulator's views.Andy Bell, AJ BellThe main issue raised by the FCA was around board governance, and how a person with a major financial interest in the company’s performance sitting on the board could influence the effectiveness of this governance.
In an announcement today (September 27), AJ Bell said: “The FCA have indicated that they consider their stance to be consistent with previous messages given to other regulated firms and is no reflection on the fitness and propriety of AJ Bell or Andy, who will remain as CEO until the end of September.”
After September, Bell will step down as chief executive, handing the reins to Michael Summersgill - the company's chief financial officer who became deputy chief executive last year.
Summersgill’s role has now been approved by the FCA. Bell will retain the right to nominate a non-executive director to represent his interests as a major shareholder on the board, and himself move into a consultant role at the end of September.
The platform provider said it has had “constructive discussions” with the FCA since the announcement of Bell’s departure.
It said they talked about the need for a clear distinction between executive and non-executive roles in a regulated firm, and “the risk to effective board governance” that would arise if a founder or CEO with a significant shareholding remained on the board after stepping down as CEO.
Bell said today: "I accept the regulator's views and as a result have decided to step down from the board in order that I can continue the journey I started 27 years ago, supporting the business in the most effective way I can.
“My focus will be on helping to build the AJ Bell brand as well as continuing to support AJ Bell's campaigning and lobbying efforts on behalf of retail investors and financial advisers. I have complete confidence in the board, Michael and the wider management team and remain a committed long-term shareholder.”
Helena Morrissey is also to stand down from AJ Bell’s board as chair. Morrissey has agreed to continue working with the company on a consultancy basis.
AJ Bell’s senior independent director, Evelyn Bourke, said due to being unable to agree its preferred role for Bell with the FCA, Morrissey believed it was the right thing for her to step aside so a new chair could take the board forward.
ruby.hinchliffe@ft.com
