View more on these topics

Investment Association under fire for axing regulatory unit


The Investment Association’s decision to disband its regulatory affairs unit has cast serious doubt over the trade body’s ability to influence policy at the highest level.

The IA has scrapped its regulatory affairs unit in an attempt to cut costs after three of its biggest members announced their decision to quit the trade body.

IA head of the regulatory affairs unit Richard Metcalfe has left as a result.

The decision has been criticised in some quarters of the industry.

A senior source in the asset management industry warns “the real danger” of disbanding the regulatory unit is the risk of losing influence at industry level.

He says: “We’ve got an avalanche of European legislation coming down the pike and if we don’t have cohesive representation we may not get at least some concessions.

“We’ve got the asset management review from FCA next year, so quite apart from the regulatory unit being shut down, the real danger here is we start to lose that participation at an industry level.”

The source adds firms threatening to leave the IA risk “destroying” the trade body.

Financial Inclusion Centre director and FCA board member Mick McAteer says: “The IA must have had a good reason to do this. It might have been to reduce costs or because members are leaving, so it could well be for internal organisation purposes.

“It is surprising as there is no question that regulation is going to be a priority for asset managers next year.”

gbi2 managing director Graham Bentley says the move could leave the IA without a voice to influence regulatory change both in the UK and Europe.

He adds: “You have to ask yourself whether the IA is going to engage with the regulator on behalf of fund groups or not.”

The decision follows a period of turmoil for the IA. High profile members Schroders, M&G and St James’s Place are set to quit the trade body at the end of this year, while Daniel Godfrey left his role as chief executive after a member revolt.

IA interim chief executive Guy Sears says the trade body’s regulatory activities will now be overseen by its “core” teams.

He says: “We believe that enabling our core teams, which cover the full range of investment areas, to oversee their own regulatory engagements will help us to deliver the highest quality of advocacy for our member firms, key stakeholders and the industry’s end-clients.”

Editor’s note: A version of this article appeared in the 10 December 2015 print edition of Money Marketing, with the headline “Disbanding regulatory unit ‘risks destroying IA’”. Money Marketing would like to apologise for the inaccuracy of this headline, and has amended the headline online accordingly.


Govt ‘could strike deal with providers on exit fees’

The Government will pressure pension providers into cutting exit fees on legacy policies, experts predict. Speaking at Money Marketing’s Brave New World retirement conference in London last month, independent pensions commentator Alan Higham said the Government would be forced to act on early exit penalties following the FCA’s work on the issue. The FCA’s report, […]

FCA interior logo 620x430

FCA clarifies Sipp standard assets cap-ad stance

The FCA has given further clarity on which Sipp assets can be considered standard and non-standard, including commercial property and discretionary fund management portfolios. New capital adequacy rules due to take effect from September 2016 base solvency requirements on the proportion of standard and non-standard assets held by Sipp providers. Following consultation the regulator watered […]


Woodford hires ex-FBI agent to investigate £16m paper loss

Neil Woodford has hired a former FBI agent to investigate an American drugs developer after claims of financial irregularities pushed him to a $24m (£16m) paper loss. The Times reports that Woodford Investment Management has written to the board of Northwest Biotherapeutics calling on the company to appoint the ex-FBI agent as a non-executive director. […]

Inheritance tax when it is relevant

Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]


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