THE CHAIR of retail investment firm AJ Bell quit her role yesterday after the City watchdog blocked plans to appoint founder Andy Bell to a board position when he steps down as chief executive at the end of this month.

Bell announced he would be retiring as chief executive of the firm in June after 27 years at the helm, handing over the reins to Michael Summersgill who was previously CFO and had been groomed for the leadership role.

But the firm said this morning that the Financial Conduct Authority had blocked plans for Bell to take a board seat at the firm.

In a statement yesterday, AJ Bell said the regulator had cited the need for a "clear distinction" between the executive and non-executive roles after Bell steps down, and warned of a "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."

The move by the watchdog has now spurred chair of the firm Helena Morrissey to quit her role after just nine-months.

Bell will retain a significant stake in the firm, and AJ Bell's board said yesterday he will hold the right to nominate a non-executive director to represent his interests as a major shareholder.

(c) 2022 City A.M., source Newspaper