CMA to publish initial decision on investment consultancy market on Wednesday

James Phillips
clock • 2 min read

The Competition and Markets Authority (CMA) will publish its provisional decision as to whether there are adverse effects on competition in the investment consultants market on the morning of 18 July.

The investigation, which was launched last September following a referral from the Financial Conduct Authority (FCA), has been seeking evidence on whether a lack of competition also leads to harm for clients.

Between March and May this year it published eight working papers, setting out the evidence it had received and emerging findings across topics including barriers to entry and expansion, gains from engagement, product recommendations, and trustee engagement.

Across the working papers, it found:

The papers also included potential remedies, depending on its final decision, such as mandatory tendering or switching of investment consultants, greater education and guidelines from The Pensions Regulator for trustees, and segregation of advice and marketing materials at firms which other both investment consulting and fiduciary management.

The provisional decision will be open to further industry feedback, including response hearings, until October, before the final decision is required to be published by 13 March next year.

James Phillips
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James Phillips

Professional Pensions journalist from 2016-2022

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