City of London Group's CEO and FD step down

City of London Investment Group's Chief Executive Officer (CEO) Doug Allison and Finance Director (FD) Valerie Tannahill have resigned from the board with immediate effect.

Chief Information Officer, Barry Olliff, has been appointed interim CEO and the company has started looking for a new FD.

Finance Manager, Tracy Rodrigues, will step into the role of Financial Controller.

"All of the directors, including the parties stepping down, are of the mutual view that these changes reflect the best interests of the group," the firm said in a statement.

"The board would like to thank the departing directors for the contribution they have each made to the success of the company over many years."

The group also said it has continued to improve its client base since announcing its quarterly funds under management (FuM) update on March 4th.

The current run-rate for operating profit, before profit-share, is about £1.1m per month based upon current FuM and a dollar to sterling exchange rate of $1.535 to £1.

A final dividend of no less than 16p, subject to stable markets and profitability, has been recommended for the financial year. The pre-close trading update will be released on 17 June 2013.

Shares fell 2.38% to 246p at 10:15 Monday.

RD