We welcome the Competition and Markets Authority’s (CMA’s) in-depth work on competition in the market for investment consultancy and fiduciary management services. As part of our asset management market study, we referred this sector to the CMA for a detailed investigation because we had serious competition concerns.
The CMA’s provisional findings about pension schemes trustees’ limited ability to drive competition between investment consultants and fiduciary managers are significant. These services matter because the firms involved provide advice and services to the pension schemes which so many consumers rely on. According to the CMA, investment consultants advise on, and fiduciary managers take decisions for, the investment of at least £1.6 trillion of pension scheme assets which affect millions of pension scheme members and their families.
We agree with the CMA that it is important that the remedies address the potential harm in this sector effectively. We look forward to reviewing the CMA’s detailed findings and suggested remedies, including their recommendation to extend the FCA’s regulatory perimeter, and will continue to work closely with the CMA in the coming months as the remedies are finalised. The views of stakeholders are important and we encourage interested parties to engage with the CMA’s consultation.