Daniel Godfrey, chief executive of the Investment Association, the UK investment managers' trade body, will leave the board with immediate effect.
The news comes after Sky reported on Monday that M&G Investments and Schroders, who between them manage some £550bn of assets, will not renew their contract with group, and Fidelity Investments, Aberdeen Asset Management and Invesco Perpetual are also considering quitting.
One source told City A.M. the board felt “new leadership was needed for the significant changes and regulatory reforms it faced”.
Godfrey has held the position for three years, during which he oversaw the merger with ABI Investment Affairs, introduced initiatives to promote transparency about fees and board renumeration, and lobbied against a bonus cap for the industry.
Critics have said he has introduced changes too fast, without consulting them, and should have done more to fight the industry's corner.
Guy Sears, currently director of risk, compliance and legal, will take on the role of interim chief executive until a permanent replacement is appointed, a process which has already begun.
The Investment Association has more than 200 members, who collectively manage over £5.5 trillion-worth of assets for clients.
Helena Morrissey, the group's chair, said:
The board would like to thank Daniel for his significant contribution to the Investment Association. During his time Daniel 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.