Investment Association chief executive Daniel Godfrey is leaving the trade body, after a flurry of asset managers said they were leaving the association.
A source close to the situation said Godfrey was departing “by mutual agreement” with the board, as “collectively they felt a new leader was needed at this time”.
An interim chief executive will be appointed from within the IA staff, while a full search will be carried out by the board for a replacement for Godfrey.
“The board decided now is the time for new leadership for the challenges ahead for the industry and the next stage of development, a new leader was inevitable,” says the source.
“There was no one trigger event,” says the source. ”You can see the next two years are going to be very important and the industry is developing and adapting to bigger trends, such as disintermediation, regulatory changes coming and a wide variety of transformative events on everything from infrastructure, to platforms, to transparency on fees.”
“IA has a part to play in this and [Godfrey] has reflected on all that and decided now is the right time for new leadership,” says the source. ”Daniel has decide now is the right time to step away.”
However, a source close to Godfrey said he had “no plans to resign” ahead of the crisis board meeting today.
This week has seen M&G, Schroders, Fidelity Investments, Aberdeen and Invesco Perpetual, among others, say they will consider resigning from the association when their current membership expires. Collectively the five firms make up 29 per cent of all UK retail funds, as at the end of August.
Godfrey received £532,595 in pay last year, a rise on the £474,523 he received in 2013.
Godfrey has been at the helm of the IA since 2012 when he moved over from being director-general of the AIC.
The Investment Association and a representative for the board declined to comment.