AJ Bell PLC (LSE:AJB) said its founder Andy Bell will step down from the board sooner than expected as chief executive, following discussions with the regulator.
The investments and pensions platform announced in June that Bell would be replaced as CEO by Michael Summersgill at the start of October and step down from the board by the end of the year.
In talks with the Financial Conduct Authority since, it said the regulator stressed 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".
Bell will now step down from the board from 30 September but will continue to work with the business in a consultancy role.
The board has agreed with him that while he remains a significant shareholder, he will retain the right to nominate a non-executive director to represent his interests as a major shareholder on the board.
"I accept the regulator's views and as a result have decided to step down from the board in order that I can continue the journey I started 27 years ago, supporting the business in the most effective way I can," he said in a statement.
"My focus will be on helping to build the AJ Bell brand as well as continuing to support AJ Bell's campaigning and lobbying efforts on behalf of retail investors and financial advisers."
He said he has "complete confidence" in the board, Summersgill and the wider management team and will "remain a committed long-term shareholder".