There seems to have been major differences between Schroders and M&G’s representatives and Godfrey on the policies being pursued.
If Godfrey’s approach and strategy were the main reason for dissatisfaction among some of the big asset management firms, then his departure will lead to a steadying of the ship and possibly the continued membership of all firms involved.
If the issues are more fundamental, then what will transpire is a short term calming of the waters followed by a fresh round of conflict and dissent.
Whichever of these two scenarios is correct, the situation certainly represents a serious challenge for new interim CEO Guy Sears.
Sears will no doubt find as Godfrey apparently did, you cannot please all of the people all the time.
The IA’s position is one of inherent conflict between the need to steer the industry in ways which appeal to politicians, regulators and the wider public, and the desire of the member firms to manage their own affairs and protect their profitability.
While those two interests can coincide on many levels there are inevitably areas in which they clash, chief among them fees.
The opposition to Godfrey’s leadership does not appear to have been unanimous, with the likes of industry heavyweight BlackRock not joining Schroders and M&G in their stance. This will certainly give Sears at least a fighting chance of being a successful peacemaker.
