The UK’s asset management association is braced for the departure of two of its members, M&G and Schroders, after dissatisfaction over the work undertaken by the Investment Association (IA).

The managers declined to comment on reports they would be leaving the association, but IPE understands that both – with combined assets of £565bn (€721bn) – would be letting their membership lapse at the end of this year.

The association recently urged its members to increase transparency, publishing a list of 10 principles that only received support from a minority of members.

Only 25 of the association’s 204 members, representing £1.8trn of its £5.5trn in assets, backed the principles, which said clients’ interests should be put ahead of those of the asset manager and called for more transparency on fees.

A source familiar with the departing managers’ concerns said there had been dissatisfaction within the industry over the principles – evident by the low level of backing among members – but added that the decision to let membership lapse was not down to any one issue.

Reports also alleged that Aberdeen Asset Management and Invesco Perpetual were considering their continued membership.

Invesco declined to comment, while Aberdeen could not be reached for comment at the time of writing. 

Daniel Godfrey, the association’s chief executive, said it would be “incredibly disappointing” if any asset managers were to leave the association.

He said he would do everything he could to ensure managers’ continued membership.

“Our very pro-active strategy to help a great investment management industry make investment even better can be uncomfortable at times,” he said.

“But it is not only the right thing to do given the responsibility of managing other people’s money as their agents, it is essential in the post-global-financial-crisis world if we are to maintain the right to have influence over our future regulatory and legislative environment.”