View more on these topics

Ex-Investment Association chief urges return to fund manager code


Former Investment Association chief executive Daniel Godfrey has urged his successor Chris Cummings to reinstate a deadline for the trade body’s Statement of Principles code.

Announced in April 2015, when Godfrey was still at the helm of the Investment Association, the code aimed to educate investment managers on their responsibilities towards clients. Godfrey was subsequently ousted as chief executive of the trade body.

The IA told Money Marketing sister publication Fund Strategy it will report back to its members on the code “when implementation discussions have concluded”.

In December the IA pushed back indefinitely the deadline for fund managers to sign up to the principles, originally due on 1 January, after members raised concerns about the additional compliance burden imposed by the project.

Godfrey says: “I’d like to see what happens to the Statement of Principles when Chris starts in September.”

When the Statement of Principles were published, 25 firms, which represent 20 per cent of the industry’s assets under management, committed to follow the principles and to provide credible reassurance that they were doing their best to follow them.

Godfrey says: “A small number of firms successfully undermined the take-up by creating alarm that the provision of credible reassurance would be a significant compliance burden.”

Schroders and M&G, which have not taken part in the initiative and are two of the Investment Association’s biggest members, threatened to leave the trade body around the time of Godfrey’s departure.

The 10 key principles included encouraging investment managers to “always put clients’ interests first and ahead of their own” in the execution of their duties, as well as “ensure regular, timely and clear lines of communication with clients” and “maintain a corporate culture that sustains these principles”.

Godfrey says: “The first principle says to always put the interest of clients ahead of your own. This is absolutely appropriate because as investment managers rightly often remind us they have an agency model unlike that of banks and insurance companies.

“Before a client becomes a client they have to agree a mandate and a fee and investment managers as agents are perfectly entitled to charge a fee which is profitable.

“I very much hope that under the new leadership the Investment Association will be able to introduce the Statement of Principles and succeed where I failed.”

Cummings, TheCityUK founding chief executive and former Aifa director general, will start his role at the Investment Association later this year.



Mark Dampier: The small fund with a big ambition

When investing in global equities the options are vast. With a hunting ground spanning almost every country and sector, it is often assumed a manager requires a huge team of analysts behind them to run an international fund. Yet James Thomson of Rathbone Global Opportunities has thrived as part of a relatively small team. His […]

FCA to review absolute return funds

The FCA plans to include a review of absolute return funds in its asset management market study, according to reports. The FT reports that the regulator is investigating absolute return funds amid poor performance and the flood of money to the strategies in recent years. A spokesperson for the regulator told the newspaper: “We are […]


Investment trade body inadvertently reveals fund manager underperformance

Data included in an Investment Association report to highlight the absence of hidden fees in the asset management market shows the poor returns delivered in some sectors, prompting industry experts to call for underperforming fund managers to cut their charges. This week the Investment Association said it found “zero evidence” that funds’ returns are affected by hidden […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm