UK - Former Gartmore chief Paul Myners (pictured) has slammed the investment industry for resisting the government's crackdown on bundled payments and soft commissions.
Myners – speaking before the House of Commons Treasury select committee – likened efforts to reform the system to “swimming in treacle”.
And he blamed investment industry lobbying for the delay.
In June, the then Financial Services Authority chairman Howard Davies said the regulatory shake-up would be delayed. He said the FSA needed to consider whether the changes would put the UK at a competitive disadvantage.
The FSA estimates that ending soft commissions alone would save institutional investors up to £880m.
Myners believes the delay proves the fund management industry is looking after its own interests – rather than doing what is best for pension funds.
He said: “Their lobbying has been powerful, consistent and the voice of the consumer has not been heard.”
Mercer Investment Consulting European partner Piers Bertlin agreed with Myners, saying: “Our view is sympathetic to Myners’s overall approach and the proposals from the FSA.”
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