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(Alliance News) - AJ Bell PLC on Tuesday said that the UK's Financial Conduct Authority has approved the promotion of Deputy Chief Executive Officer Michael Summersgill to the role of CEO, replacing CEO & founder Andy Bell on October 1.
Bell will remain as a significant shareholder and consultant but will step down from the board this coming Friday. Bell has a 23% stake in AJ Bell.
The decision for Bell to leave the board followed discussions with the CMA. The regulator was concerned "about the need for a clear distinction between the executive and non-executive roles in a regulated firm and the risk to effective board governance that would arise if a founder CEO with a significant shareholding remained on the board after stepping down as CEO," Manchester-based AJ Bell explained.
Meanwhile, Chair Helena Morrissey said she wants to step down from the board as soon as the company has found a replacement.
Evelyn Bourke, Senior Independent Director at AJ Bell, said: "We were unable to agree our preferred role for Andy with the FCA, and Helena believes it is the right thing for her to step aside so a new chair can take the board forward".
AJ Bell shares were 1.7% lower at 280.65 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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