Change at the top of leading body the Investment Association could mean bad news for consumers.
Daniel Godfrey departed as head of the industry group late on Tuesday after Schroders and M&G threatened to pull their membership. His role came under fire as Invesco Perpetual, Aberdeen Asset Management and Fidelity Worldwide Investment were rumoured to be heading for the exit too.
Godfrey had pushed for greater transparency over investment fees and his resignation sparked an wave of support on Twitter from those who liked his consumer focus. However, some fund managers felt the lobby has acted as a proxy regulator.
From 2016, asset managers will have to display fees for investment funds in pounds and pence – more regulation for the industry, but clearer for the consumer.
Head of ShareAction Catherine Howarth said: “Ordinary savers will want to know why asking fund managers to commit to transparency… is against the industry’s best interests."
Another source said: “He has been doing a great job I worry this is going to undermine consumer confidence in the investment industry.”