The trade body that represents UK investment managers has appointed interim leadership after its CEO quit following the announcement that Schroders and M&G will not be renewing membership next year.

The UK's Investment Association has appointed Guy Sears, its director of risk, compliance and legal, as interim chief executive following the departure of Daniel Godfrey.

Godfrey had been chief executive of the association for three years and resigned after it was revealed key investment groups, including Schroders and M&G Investments, will be leaving the trade body, which has 200 members who manage more than £5.5 trillion ($8.4 trillion) of assets.

Sears will take the helm until the IA finds a more permanent replacement for Godfrey. Aberdeen Asset Management, Invesco Perpetual and Fidelity are also reported to be considering terminating their membership. The IA declined to comment on this topic. 

“The board would like to thank Daniel for his significant contribution to the Investment Association. During his time Daniel has driven a number of important initiatives, including the transformative merger with ABI Investment Affairs,” said Helena Morrissey, chair of the IA.

“His commitment and passion for our industry is widely admired by all those who have worked with him. We owe him a great debt of gratitude and wish him the very best for the future.”

The association has received criticism over reforms on the transparency of fund performance fees and transaction costs, which have been deemed too focused on the consumer rather than the industry itself. Only 25 of the IA member firms signed up to its statement of principles. Some of the largest UK asset managers not signing up included Fidelity, Invesco Perpetual, Schroders and M&G.

“When they read about what’s happened this week at the Investment Association many investors will be asking why the big fund groups can’t sign up to an agreement to put clients first and be transparent about charges. I’m sure it’s more complex than that, but there’s now serious pressure on everyone in the industry – fund managers and wealth managers alike – to bring down costs, to be more transparent and to demonstrate the value they deliver. That’s not a bad thing – as long as we don’t lose sight of the enormous benefit good money managers can deliver and recognise that expertise costs. What we’re all opposed to is those that charge without delivering good value," Lee Goggin, co-founder of findawealthmanager.com, a "dating agency" business for wealth managers and clients, said.