Daniel Godfrey has been asked to step down as chief executive of the UK's Investment Association after its members acted decisively in the wake of news that two of their number – Schroders and M&G Investments – were heading for the door.

The decision was taken at a top-level meeting of IA members on October 6. IA board director Andrew Formica, chief executive of Henderson Global Investors, acted as a mediator, according to people familiar with the matter. Formica did not return calls for comment.