IA shuts regulatory affairs unit after members depart

Loss of funds leads to closure

The Investment Association has disbanded its regulatory affairs unit, just months after high-profile members such as Schroders announced plans to terminate their memberships with the body.

Large firms, including Schroders and M&G, said they would not be renewing their memberships over issues surrounding chief executive Daniel Godfrey and his reform agenda. The largest asset managers can pay up to £200,000 for membership, so the departure of such large members leaves the organisation with a funding shortfall.  Last year the organisation spent £6.2m on staffing costs, up from £4.9m in 2013. According to the Financial Times, the IA has had to close its regulatory affairs unit as a result, which was headed up by Richard Metcalfe. Metcalfe and another member of staff have...