Bestinvest, which is the second largest discount broker in the market, originally agreed to join the trade body, which also includes the likes of Chelsea Financial Services, Willis Owen and Financial Discounts Direct.
A Bestinvest spokesperson says: “Bestinvest has decided to postpone its association with the AIDB as we feel that although a very worthwhile enterprise, the timing is not right for us at this moment. However, we remain certain that the AIDB will have a positive impact on the industry in the future and will remain supportive of the organisation and its aims.”
As revealed in this week’s Money Marketing, the AIDB has been launched on the back of the retail distribution review after numerous firms’ in the non-advised sales sector highlighted concerns that despite representing approximately 20 per cent of all fund sales they may have been overlooked by the FSA.
Hargreaves Lansdown has chosen not to take part in the trade body on the grounds that it is already a part of the UK Platform Group, with the majority of its business going through Vantage.
AIDB acting chairman Darius McDermott says: “We are obviously disappointed that Bestinvest have decided to relinquish their membership to the AIDB, but it does not change the course of the body, nor its aims. Our existing members remain fully behind the AIDB and look forward to working together to increase awareness of non-advisory sales concerns.”