FCA hires former Investment Association chief Daniel Godfrey

Godfrey Daniel Investment Association 2015The FCA has hired former Investment Association chief executive Daniel Godfrey.

Godfrey, who was ousted from the investment industry trade body last year, will join the regulator on a consultancy basis.

He will work in the asset management policy team, rather than in a decision-making capacity. The FCA was not able to give details of the policy Godfrey will be working on or the length of his contract.

The FCA is currently carrying out a review of the asset management sector. The regulator will review how asset managers compete to deliver value and whether they are motivated or able to control costs. A final report on the study is due to be published by early 2017.

Godfrey was forced to resign from the Investment Association last year, after a number of high-profile members threatened to quit.

Since his departure he has been vocal on the need for the asset management industry to reform, including focusing on fund manager pay and the transparency of fund charges.

Speaking to the Financial Times after his departure, Godfrey called for reform of manager pay and more clarity on fund fees. At the time he said there needed to be a “radical simplification of executive remuneration”.

Fund firms are thought to have rebelled after Godfrey launched a Statement of Principles at the trade body, which urged for more transparency and putting clients first.

Godfrey has also recently teamed up with ShareAction chief executive Catherine Howarth to research how to tackle incentives structures in the asset management industry.

The duo will research the underlying design of pay schemes and how remuneration structures work.

Godfrey says: “Incentive structures need to be transparent to investors and show how they are aligned to value delivered to investors. If they can’t get over that hurdle, there’s a problem.”