IMA’s Godfrey: Industry must work together to raise standards

Investment Management Association chief executive-designate Daniel Godfrey has suggested the retail asset management trade body will work with other parts of the industry to raise conflicts of interest standards.

The FSA wrote to chief executives within the asset management industry to raise concerns over the way conflicts of interest are addressed.

The “Dear CEO” letter highlighted the issue at firms from across the industry, including retail asset managers.

Godfrey says: “Clearly there are matters of concern to many of the trade associations and many of the segments of the industry.

“We need to work together on issues. Even if there are players outside of the membership that are part of the process, it still affects the membership.”

Godfrey advocates a common view towards conflict of interest management says a tick box approach to ensure asset managers are acting within clients interests is unlikely to work.

He says issues raised by the regulator will be taken seriously and will see the IMA work with the FSA to resolve those

Godfrey adds: “‘Dear CEO’ letters are quite a good way of raising the profile of an issue generally.

“I think the new approach of asking chief executives to attest to resolutions or processes is a good way to develop the desired outcome from the FSA’s perspective.”