Guy Sears, IA director, risk, compliance and legal, has been announced as interim CEO until a permanent replacement for Godfrey has been found.
“The board would like to thank Daniel for his significant contribution to the Investment Association,” said Helena Morrissey, IA chair.
“During his time Godfrey has driven a number of important initiatives, including the transformative merger with ABI Investment Affairs. His commitment and passion for our industry is widely admired by all those who have worked with him. We owe him a great debt of gratitude and wish him the very best for the future.”
The news follows the announcement on Monday that M&G and Schroders had decided to leave the organisation, and rumours that Aberdeen Asset Management, Fidelity Worldwide Investment, and Invesco Perpetual are considering making an exit as well.
The IA which has only existed in its current form since January, when it rebranded from the Investment Management Association following last year’s merger with the Investment Affairs team at the ABI, has been at pains to change the way it is seen and the role it plays within the sector – undergoing not just a merger but a significant rebrand as well earlier this year.
It has also rolled out some significant programmes, including pounds and pence disclosure charge and a new Statement of Principles.
Speaking to Portfolio Adviser recently, Godfrey said the body now covers “quite a broad spectrum across everything of importance to investors. Whether it is product regulation and governance, communication or transparency, or around engagement, remuneration, environmental sustainability and how the financial markets extract costs, we now look at it all.
“And, he added, “We gave a lot of thought to how we articulate our mission and core objectives, and you expect those to stay stable for a period of time. If they are ambitious enough, they take a long time to achieve and, if they are the right ones, they should not change.”
However, some commentators have expressed the view that members were unhappy with some of the new initiatives.
The loss of such high profile members is major dent to the authority the IA can command, and, as my colleague Gary Shepherd wrote on Monday, the trade body will need to act fast if it is to contain any further rebellion. It would seem, it has done just that.
But, while this move may have stemmed the bleeding, it does make the job (already a difficult one) of who ever comes into replace him significantly harder. Trying to negotiate a single way forward for a membership that by nature often has competing needs and wants is no easy feat at the best of times, but doing so with a short leash is going to be even tougher.
And it comes at a time of flux for the industry, where scrutiny on costs and changing regulation are changing rules of the game for asset managers.
